Sectional Title Geyser Insurance Claims: What Owners Need to Know

Sectional title geyser insurance claims are one of the most common types of claims in sectional title schemes. A leaking or burst geyser can cause extensive water damage within minutes, soaking ceilings, damaging cupboards and flooring, and even affecting neighbouring units.

What many owners only discover at claim stage is that Body Corporate insurance does not provide unlimited cover for geysers. There are specific limits, conditions and exclusions that apply to sectional title geyser insurance claims. Understanding how this works upfront can prevent costly surprises later.

How Sectional Title Geyser Insurance Claims Work

Under most sectional title policies, geysers are insured according to their capacity. The insurer sets a maximum amount payable for a 150 litre, 200 litre or 250 litre unit.

This means the policy does not automatically cover “whatever it costs” to replace the geyser. It covers up to a stated limit for that size.

If the replacement and installation cost exceeds the policy limit, the shortfall is usually for the owner’s account. An excess will also apply and is deducted from the claim payment.

In the event of a replacement claim, the insurer will generally apply the following formula:

Claimed Amount (either the amount being claimed or the geyser limit, whichever is lower) – Replacement Excess = Amount Paid to the Client

It is equally important to understand that insurance responds to sudden and unforeseen damage. Gradual deterioration, corrosion, rust, element failure due to wear and tear, and maintenance-related issues are generally excluded from sectional title geyser insurance claims.

As building and labour costs increase, geyser limits that were adequate a few years ago may no longer be realistic. If the limits are not reviewed, the funding gap grows quietly in the background.

Can Geyser Limits Be Increased?

In many cases, yes. Insurers often allow Body Corporates to increase geyser limits for an additional premium.

Trustees should review these limits periodically with their broker, especially where replacement costs have risen significantly. A relatively small premium adjustment can make a meaningful difference when a claim happens.

Maintenance: Your First Line of Defence

Most geysers give warning signs before failing. Regular maintenance reduces the risk of rupture, improves efficiency and extends the lifespan of the tank.

At least once a year, a qualified plumber should inspect the anode rod, check the heating element for lime scale, and test safety valves.

Every six to twelve months, the tank should be flushed to remove sediment build-up. Sediment reduces efficiency, increases electricity usage and can damage the element.

On a monthly basis, the Temperature and Pressure valve should be tested to ensure it is functioning correctly. A faulty valve can allow dangerous pressure build-up.

Thermostat settings also matter. A range of 55°C to 60°C is generally recommended. Excessively high temperatures increase pressure stress, while very low settings can create hygiene concerns.

Insulating the geyser and exposed hot water pipes can reduce heat loss and lower electricity costs.

Early warning signs such as rumbling noises, rusty water, constant dripping from the overflow pipe, damp ceilings or a frequently tripping breaker should never be ignored. Good maintenance is one of the best ways to reduce the likelihood of sectional title geyser insurance claims.

What to Do If Your Geyser Bursts

If a geyser bursts, acting quickly can limit the damage.

Start by switching off the water supply at the main stopcock. Then switch off the electricity supply to the geyser at the DB board. This step is critical for safety.

Open the hot water taps to relieve pressure and allow the remaining water to drain.

Contain the damage where possible by using buckets and towels and move furniture or electrical appliances away from the affected area.

Contact a qualified plumber or emergency assist insurance number to assess the damage and provide a quote. Then notify your insurer or broker so the claim process can begin.

Be cautious. The water can be extremely hot, and damaged ceilings or electrical connections pose serious risks. Do not attempt to inspect roof spaces or structural damage yourself. Wait for a professional.

Protecting Yourself From Unexpected Costs

Owners are often surprised when they realise the full replacement cost is not covered. The practical steps to avoid this are simple:

• Know your scheme’s geyser limit.
• Understand the excess that applies.
• Ensure regular maintenance is done.
• Review the limits with your broker if necessary.

A burst geyser is disruptive, but it does not need to become a financial setback. Being proactive with maintenance and policy reviews is far better than dealing with a funding shortfall after a loss. Understanding sectional title geyser insurance claims upfront can help owners make better decisions before a claim ever happens.

Important Note

This article is for general information only and does not constitute financial advice. Policy terms, limits, conditions and exclusions differ between insurers and schemes.

If you would like us to review your Body Corporate schedule and wording, share it with our team. A short review today can prevent a costly surprise tomorrow.