Are you aware of your responsibilities regarding the maintenance of your assets? Do you know what damage is covered by your insurance policy? And, more importantly, what damage is NOT covered?
Both maintenance and insurance are essential risk management tools for protecting your assets, but they serve different purposes and apply in different circumstances.
Maintenance is your responsibility as a property or vehicle owner. It involves regular upkeep and repairs to prevent wear and tear. Common examples include fixing a leaking roof, waterproofing, and clearing your gutters of debris, replacing worn-out tyres or brakes or addressing rust on a car. If something breaks down due to lack of maintenance, it’s not something that insurance will cover.
Insurance comes into play when unforeseen events occur, such as a lightning strike, a burst geyser or a vehicle accident. It provides protection against sudden, accidental damage or loss. It is important understand that insurance policies have exclusions, when it comes to damage caused by neglect or lack of maintenance.
Here are some common examples of instances that are maintenance-related and therefore not claimable from your insurance:
Leaking roofs due to lack of waterproofing maintenance
Water damage from a failed shower seal over time
Rising Damp
Worn-out mechanical parts in vehicles (such as brake pads or clutch kits)
Rust damage, peeling paint, or worn upholstery
Fading and wear of tyres
To avoid these types of claims being rejected, regular maintenance is crucial. Keeping records of routine services (such as annual check-ups for vehicles) will also help maintain the longevity and value of your assets.
Why maintenance matters
Longevity: Regular maintenance extends the lifespan of your property and vehicles.
Safety: Well-maintained equipment is safer to use.
Efficiency: Proper maintenance improves energy efficiency and operational effectiveness.
Cost Savings: Addressing minor issues early helps avoid costly repairs later.
Resale Value: Well-maintained assets have a higher resale value.
Compliance: Regular maintenance is often required to meet industry standards.
Understanding your Body Corporate insurance
If your building is sectional title property, your actual building structure will be covered by your Body Corporate’s insurance, which is included in your monthly levies. However, many sectional title homeowners are unclear on what this insurance covers and what their own responsibilities are.
While Barker Insurance is unable to provide cover for buildings that are sectional title, we encourage our clients to investigate and educate themselves about the specifics of their cover. Body Corporate Insurance typically covers the building’s exterior and common areas, but you will still be responsible for regular maintenance within your unit Importantly, some exclusions may apply to your Body Corporate Insurance policy, such as:
Water damage to interior flooring not covered by the Body Corporate
Lightning damage to Fixed alarm systems and inverters
Leaking pipes or water damage from taps left open during water outages
To avoid surprises, request a copy of your Body Corporate insurance policy from your managing agents, attend AGMs to understand your cover, and check policy excesses and exclusions.
How Barker Insurance covers you
At Barker, we focus on providing cover for your buildings, household contents, and vehicles. It's important to remember:
Damage caused by gradual deterioration, such as rust, wear and tear, or lack of maintenance is not covered by insurance.
We do cover unforeseen events like storms, fires, or accidents.
By understanding what your insurance covers and taking care of regular maintenance, you can better protect your assets and avoid disappointment when you make a claim.
If you are unsure about any part of your insurance policy, or want to explore ways to extend your cover, contact your Barker Insurance consultant. It’s always better to clarify your cover before a loss occurs as there is little that can be done afterward if proper provisions haven’t been made.