Property Insurance for Sectional Properties: Expert Guide for Owners and Investors

Why Sectional Property Insurance is Non-Negotiable!!

Owning a sectional property whether a condominium, apartment, or townhouse comes with unique responsibilities. One of the most critical yet often misunderstood aspects is sectional property insurance. Without the right cover, property owners risk financial loss, legal disputes, and liability exposure.

This guide explains exactly how sectional property insurance works, what it covers, and why both unit owners and tenants need tailored insurance solutions. By the end, you’ll understand how to protect your property, comply with regulations, and safeguard your investments.

1. What Is Sectional Property Insurance?

Sectional property insurance (also called strata or condominium insurance) is a specialized policy that protects buildings divided into individually owned units with shared common property.
Unlike standard home insurance, this policy primarily covers:
The building structure (walls, roof, foundations)
Permanent fixtures (plumbing, wiring, built-in cabinetry)
Common areas (stairs, lifts, parking areas, gardens, pools)
It does not typically cover personal belongings inside your unit.

2. Who Is Responsible for Insuring Sectional Properties?

Legally, the body corporate or homeowners association (HOA) is responsible for insuring the entire building. This includes both the individual units’ structure and the common property shared by all owners.
Owners contribute to premiums through levies, usually calculated based on their unit’s participation quota.

3. What Sectional Property Insurance Covers

A comprehensive policy usually includes:
Structural damage: Walls, roof, floors, and foundations
Permanent fixtures: Plumbing, wiring, lifts, built-in cabinets
Common areas: Hallways, staircases, gyms, swimming pools
Shared equipment: Boilers, generators, security systems
This type of cover is typically on a replacement cost basis, ensuring repairs are fully funded.

4. What the Policy Does NOT Cover

It’s important to understand the limits of coverage. Sectional property insurance usually excludes:
Personal belongings (furniture, electronics, clothing)
Unit improvements or upgrades made by the owner
Personal liability within your individual unit

NB. Every unit owner should maintain additional personal insurance to fill these gaps.

5. Why Unit Owners Need Individual Insurance

Even with body corporate insurance, you may still need:
Contents insurance for furniture, appliances, and valuables
Improvements & betterments insurance for upgrades
Personal liability cover for accidents inside your unit
Loss of rental income insurance if your unit is rented out
These policies protect you against unexpected financial losses that body corporate insurance does not cover.

6. Tenant Insurance Considerations

Tenants are not responsible for insuring the building, but they should consider:
Contents insurance for personal belongings
Personal liability coverage for accidental damage to the unit or injury to others

NB. Tenants who take out proper cover reduce conflicts with landlords and avoid costly claims.

7. Key Risks Covered by Sectional Property Insurance

Typical risks include:
Fire, explosion, and smoke damage
Storm, flood, and water damage from burst pipes
Damage to common property
Public liability claims arising in shared areas.

8. Avoiding Underinsurance: Valuations & Policy Reviews

Underinsurance is a common problem. Experts recommend:
Professional replacement cost valuations every 2–3 years
Annual policy reviews to ensure coverage aligns with legislation, lender requirements, and property upgrades
Regular review ensures your investment is fully protected and reduces disputes in case of claims.

9. Common Mistakes to Avoid

The top insurance mistakes sectional property owners make:
•Assuming body corporate insurance covers personal belongings
•Not insuring improvements or betterments.

Failing to review policy limits regularly
Underestimating public liability exposure in common areas
Avoiding these mistakes can save you thousands in claims and legal fees.

10. Take Action: Protect Your Sectional Property Today

Securing the right insurance for your sectional property is not optional, it’s essential for protecting your investment. Whether you’re an owner, investor, or tenant, you need a tailored insurance strategy that complements body corporate cover.

✅ Speak to an expert today to review your sectional property insurance. Ensure you have:
Full building coverage through your body corporate
Individual unit contents and improvements insurance
Liability and rental loss coverage

For sound and expert guidance while purchasing your property investment, get in touch with us at Mueni Homes and Properties:
📞 0735 729 459 | 0796 424 668
🌐 www.muenihomesandproperties.co.ke

Protect your investment, avoid costly mistakes, and secure your peace of mind with expert advice from Mueni Homes and Properties.