12 July 2023
Thinking about insurance can be a bit overwhelming, especially because it is usually associated with things going wrong. It is, however, so important to ensure that as a Landlord or Tenant you are covered in case a situation arises.
It is the Landlord’s responsibility to insure the property. This insurance protects the Landlord against accidental damage regarding any structural, plumbing, electrical and security aspects of the premises that were not caused directly by tenant negligence. For example, a burst geyser, a faulty electrical board, roof damage caused by extreme weather - all of these are the responsibility of the Landlord to repair and should be covered by their preferred insurance company.
It is the Tenant's responsibility to insure their contents - what is brought into the property - by
way of personal content insurance. This is to ensure that if anything is damaged that belongs to the tenant, it can be repaired or replaced based on their insurance cover. For example, should any item belonging to the tenant be damaged due to a burst geyser or flooding caused by extreme weather, the tenant is able to put a claim in with their preferred insurance company to cover the damage or replacement of these items.
A question that we get a lot in the real estate industry is regarding responsibility when it comes to burglaries. If we take the above into account, should a property experience a break in, it would therefore be for the account of the Landlord to repair any damage to windows, locks, doors or security gates as this falls in his realm of responsibility. Should any items belonging to the Tenant be damaged or stolen, it would be up to the Tenant to claim for these items under the cover of their preferred insurance company.
A legally sound Lease Agreement will always include a clause as to ensure that both the Landlord and Tenant acknowledge that they are required to have in place their own respective insurance in terms of the premises and contents of the premises. It is important that both parties are covered against potential loss or damage.
