Short Term Insurance

Insurance can either be classified as short term insurance or long term insurance (also known as life assurance) and is an integral part of our day to day lives.

Short Term Insurance refers to all types of insurance policies other than life assurance. It is primarily aimed at protecting your valuable assets (for example motor vehicle, household content, fire cover etc.), your person, business or your travels aboard. Short Term Insurance is specifically tailored to your needs and adjusted accordingly as your needs change.

Conventional Short Term Insurance policies usually include the following:

• Vehicle Insurance: This covers the financial costs involved if your car is stolen or in an accident. Besides covering the costs of replacing or repairing your vehicle, it can also cover costs associated to your passengers, other drivers and their vehicles (a concept commonly referred to as 3rd party cover);
  
  
• Household contents insurance: This covers any form of damage or loss suffered to your personal possessions while located within your home and generally includes clothes, appliances, furniture etc. Certain belongings are however automatically excluded unless specifically provided for in your insurance schedule. To ensure adequate cover, it is advisable that an inventory of your belongings be made and that your Financial Advisor assists in determining your insurance needs; and
  
  
• Homeowner Cover (also known as known as fire cover): This type of insurance is aimed as insuring you against loss or damage to the actual structure of your home. It covers the cost of replacement and repair as well as any resultant damage. For example, if your house floods due to a burst geyser or pipe, your homeowner's insurance will cover the costs of these repairs. Most financial institutions require homeowner cover as a condition precedent to any home loan approval.