Challenge of Change in the Sectional Title /HOA Industry

Challenge of change in Sectional Title /HOA industry?

This is also the topic of our workshop that we conduct for managing agents and trustees.

We don’t adopt easy to new changes do we?

Let’s look back over the years and just have a look at technology…Would you have thought in the early 80’s that you will one day be able to speak to someone without been connected to some sort of wire and that all people no matter how poor or rich you are will be able to enjoy this benefit?

Some of us still try to keep up with the latest trends in technology.

The way people conduct business has changed and as most of the specialists advice that you have to adapt or otherwise someday you will be without a business.

What has changed in the sectional title /HOA industry?

Here is a couple of things that has changed but not limited to.

Legislation – with the new acts coming into play there are certain things that you as body corporate need to comply with. CCOS is one example of these compliance points that needs to be checked

Weather Patterns – The weather and storms we experience lately were never experienced before. What are we going to do to assist us in eliminating the risk?

Insurance requirements – Insurers are looking at ways and means on putting stricter requirements in place due to loss ratios

Liability – we are in a very legislative environment and the understanding of what am I liable or responsible for as trustees has changed.. do we know that?

This list can go endless but what are doing about it?

Let’s use an example .

One of the obligations of the trustees is to make sure that the body corporate are correctly insured as this section from “The Sectional Titles Act, 95 of 1986: Management Rule 29” clearly state the following:

Section 29. Insurance

29. (1) (a) At the first meeting of the trustees or so soon thereafter as is possible, and annually thereafter, the trustees shall take steps to insure the buildings, and all improvements to the common property, to the full replacement value thereof, subject to negotiation of such excess, premiums and insurance rates as in the opinion of the trustees are most beneficial to the owners, against-”

Against what? Do you know what needs to be insured?

If you don’t insure the body corporate /HOA correctly you are liable in your personal capacity as trustee /director …did you know that?

So what is the solution?

One of the solutions is to get assistance from specialists that will provide you with the necessary information that take an informed decision. There are help out there if you look for it!

That’s why we conduct workshops that will assist trustees/ directors with the necessary information to make informed decisions.

I will unpack some of these issues in the months to come!

Please don’t miss my next article :

“Your broker should no longer just do the policy but assist you in risk management!”

Please enquire about our workshops that you can attend.

Sakkie Stoltz  – Bestsure Financial Services – FSP 13663 – 0839952075 -  sakkie@bestsure.co.za

New Address for Bestsure Financial Services

 

 

We are proud to announce that Bestsure Financial Services has moved to new offices as from 1 June 2015.

Our new adress is Cnr Gordon Rd and Gavin Str, Florida North

Our contact details remain the same on 0861 10 12 20

When buying car insurance ....

When buying car insurance, you want to ensure that you get the best cover for your needs at the most affordable rate available. What factor has the biggest impact on your car insurance premium?

The answer is: You, the insured.

Your age, where you live, the car you drive, your claims history (how safely you drive!) to name a few.

Car Insurance Coverage

Comprehensive car insurance provides cover against damage to your vehicle caused by an accident, fire, theft, hijacking, hail and liabilities to third parties.

Limited car insurance (3rd Party, Fire & Theft) provides cover against fire and theft as well as liabilities to third parties. Damage to your car caused by an accident is excluded.

When opting for 3rd Party Only cover, you are only covered for liabilities to third parties.

How To Save on Car Insurance

Shop Around

Compare insurance quotes from at least 3 companies or get a broker to do it for you.

Increase your Excess

By increasing your excess amount on the car, most insurance companies will give you a discount on your premium. Be sure that you can afford to pay the excess when you have to claim though.

Don't use your car for Business Purposes

If possible, insure your car for private purposes only. Business use of your vehicle will result in a higher monthly premium. Most insurers will still give you a reduced premium if you only need occasional business use.

Drive Safely

If you're not involved in any accidents, you'll be paying a reduced premium. After each claim-free year of insurance, you might qualify for a discount at your current insurer. If not, you could get a better premium at another insurer.

Buy a Low Risk Vehicle

High performance vehicles are usually seen as a higher risk by insurance companies (especially if you're under 25). The replacement cost of parts is also more expensive.

Move

If you live in a high risk suburb or in a city, you will pay a higher premium on your car insurance due to the risk of your vehicle being stolen or hijacked.

Overnight Parking

A vehicle parked on the street is at higher risk of being stolen than one parked in a locked garage. Some insurance companies will give you a discount if your car is parked in a garage or behind locked gates at night.

Upgrade Security Measures

Install an anti-hijack device, gearlock or tracking device in your car. If your level of secuirty is higher than the requirement of the insurance company, you'll get a discount.

Nominate Drivers

The less people will be driving your car, the lower your premium will be. This way it is easier for the insurance company to calculate their risk.

Negotiate

Most insurance companies are flexible with their premiums. If you're not entirely satisfied with the quote, ask for a discount. If they really want your business, they will accommodate you.

Source (Insurance ZA)

 

Please contact us now  and save up to 20% on 0861 10 12 20

 

 

 

Security Tips for this holidays

With the holiday season here we are excited and most of us is making our way to our holiday destinations however this is the time that there is a huge increase in criminal activity.” You can prevent being a victim of crime by taking the correct precautions and as the old saying goes ,rather be safe than sorry “ says Mr Hans Brits CEO of the Bestgroup.
According to Brits there are a several handy tips to insure that you can enjoy a well deserved holiday.  
READ MORE

Travelling Tips for this festive season

With the December holidays  approaching, millions of South Africans will soon hit the roads on the way to their travel destinations.
According to Riaan van Wyk , Managing Director of Bestsure, increased traffic invariably leads to a higher number of road accidents, and it is crucial that people ensure they are adequately prepared for any potential risks before they set off.
Van Wyk  says that in addition to being aware of other vehicles on the road, drivers should also pay particular attention to pedestrians during this time, as research shows that a fair proportion of road fatalities occur amongst pedestrians.
Van Wyk has these useful tips for those planning to be on the roads this festive season: READ MORE

Congratulations : Bestsure received a Gold Award From Santam

 

Congratulations to Bestsure for the Santam Gold Award

in photo above from left Mr Ian Kirk( CEO Santam),Rocco Du Toit / Riaan van Wyk (Bestsure) and Saggy Pillay (Regional Manager Santam)

Would you pay more for a restaurant meal than a Will?

It would appear that some South Africans are prepared to pay a couple of hundred rands for a restaurant meal, yet are not happy to pay an expert the equivalent to draft their Will, a vital document that speaks for you when you are gone.

Recent affluent[1] and high net worth[2] market research commissioned by Glacier Fiduciary Services, a division of Glacier by Sanlam, revealed a startling disparity in the public’s understanding of the importance of having a professionally drafted Will. Furthermore, many affluent and high net worth individuals do not recognise the expertise required to draft a Will that you can trust to have the consequences you intend. The necessary area of expertise required to draft a competent Will includes not only estate planning in the narrow sense, but also marriage law and planning, insolvency law and asset protection, the intestate succession rules, the administration of deceased estates, all areas of tax law, trust law, exchange control etc.

Wills are drafted by a wide range of organisations and service providers, including attorneys, banks, accountants and financial advisers. Members of the public should ensure that the person they consult to draft their Will is properly qualified and experienced to do so. One’s Will dictates the manner in which your assets will be divided and your dependants looked after when you are not around to help them or remedy any mistakes or misunderstandings. Accordingly, anyone with dependants or with assets they wish to leave behind, needs to take the process seriously and not simply focus on getting a Will drafted as cheaply as possible, or free for that matter.

The objectives of the Glacier research were to provide detailed information about the current behaviour of its target market of affluent and high net worth (HNW) individuals with regard to Wills, family trusts, offshore trusts and estate planning advice, as well as to explore attitudes towards the concept of “free advice”.

The questions asked about Wills in particular revealed a huge disparity in market perceptions and expectations. Ninety-eight percent of respondents had a Will. However, only 33% overall said their Will was updated in the last year (39% HNW; 28% Affluent); 21% updated it one to two years ago; 21% updated it three to five years ago; and 25% updated it more than six years ago (17% HNW; 32% Affluent). Nominated executors are most commonly relatives (29%) or banks (25%). Attorneys are more commonly used by HNW individuals (22%) than affluent individuals (8%). When asked who drafted their Wills, an alarming 17% said that they had drafted their own Wills or a relative had drafted their Wills. The majority (63%) had Wills drafted by their attorneys or accountants.

The respondents were asked how much they paid for their Wills and how much they would expect to pay today. The fees paid ranged from nothing (44%) to between R15,000 and R20,000 (2%). 15% of respondents paid less than R1,000 and the balance (20%) paid between R1,000 and R15,000. Those who paid less than R1,000 are likely to fall into the category of people who have not updated their Wills for a very long time. The research also revealed a disparity between what people paid, and what they would expect to pay now. As regards what they expected to pay today – only 20% said that they expect a Will to be for free; 18% expected to pay less than R1,000; 8% between R1,000 and R2,500; 28% expect to pay between R2,500 and R5,000; and 12% expect to pay between R5,000 and R15,000.

The glaring difference between clients’ perceptions was highlighted in their answers to the following questions. Firstly, the respondents were asked why they would not expect to pay for a Will.

“I did not pay for my Will as part of the service of a private bank client and the bank will make money out of the estate when they have to wind it all up one day. However, I did expect to pay for it!”

“It is part of the bank service. Banks and all financial institutions make so much money from their clients, the least they can do is to provide a free Will. After all, it takes only one hour to ’cut and paste’ in preparation for Wills.”

“A Will should be part of the service I am being offered either by my private banker or my financial adviser. The cost of the Will should be included in the fees that I pay my private banker or financial adviser every year.”

But when the researchers asked, “How do you feel about people who are willing to pay more for a restaurant meal than a Will?” The response was very different.

“You're being stupid because you are gambling with lots of money. You don't want the family to sit with problems after you die. You get what you pay for. Cheap/free Wills are not worth the paper they are written on.”

“It would then appear as if there is no value perception to the Will. Wills usually need specific tailoring when assets are involved and the various beneficiaries and not just the run of the mill type Will. If it is simple and a standard template type of Will with no effort put into it, then it could be a modest meal. But I think it is foolhardy. I am willing to pay far more for a Will than a meal because I want proper professional advice that I can trust regarding tax consequences, asset details, etc.”

Regardless of whether you are paying R10,000 for your Will or if the cost is included in other fees you are paying to your adviser, just make sure that it is drafted by a properly qualified expert in Will drafting, estate planning and the related tax issues. Furthermore, don’t be misled into thinking that a relatively small estate necessarily requires less Will drafting complexity or is easier to wind up when you pass on, than a large estate. A R3.5 million estate with private company shares, children from two marriages and a usufruct attached to a property would be more complex than a R20 million estate with equities, cash and a house.
Article by Tanya Cohen (FA News)

Please click here should you need assistance with your will.