Insurance for short-term risks - Get Short term Insurance Risks

The difference between long- and short-term insurance is not necessarily the duration of the cover. Home insurance can last as long as life insurance. The difference between long- and short-term insurance is that long-term insurance covers life while short-term insurance covers assets and liability. The most popular types of insurance for the short-term is home insurance, contents insurance, car insurance and liability cover.

Insurance for short-term risks: home insurance

Home, property or buildings insurance covers the structure of a home or a building and any associated fixtures such as driveways, swimming pools, garages, and geysers. It is compulsory for homeowners who have borrowed money to purchase their house. Banks and other financiers make it so before lending money to secure their asset. (They may also require the insured to take out life insurance as well to cover the amount outstanding on the home loan.)

Insurance for short-term risks: home contents insurance

Also known as household insurance, home contents covers the movable possessions within the home such as electrical appliances and clothing. These are covered for a total amount. That is, all the possessions are lumped together to tally a total value, while the inventory informs the insurer of the possessions under the cover. High value items must be specified in a separate insurance, as must be those items which frequently leave the home, such as sports equipment, laptops and camera gear.

Insurance for short-term risks: car insurance

Car insurance is a short-term insurance policy and is compulsory for financed vehicles in South Africa. Car insurance ranges from third party to comprehensive covering vehicles for accidental damage, fire, theft, hijacking, and damages caused to third party vehicles. Car insurance can be either a private short-term insurance policy or a business short-term insurance policy depending on the use of the vehicle.

Specialist car insurance policies exist for types and volumes of vehicles. For example, sports cars require a specialist insurance policy given their risk of accidental damage and high cost to replace or repair. Taxis require a specialist business car insurance policy because of the liability and the high risk (as a result of the long hours the car is on the road) as to trucks. Fleets require their own insurance policy too to distribute the high risk across the whole fleet.

Insurance for short-term risks: liability cover

Liability insurance protects the insured against claims made by third parties for damages or personal injury. This is usually a business insurance policy but can also cover the insured’s home. That is, if someone suffers injury at your home and they claim medical fees from you, your liability insurance policy will cover these costs.

For a range of short-term insurance policies for cars and homes, fill in our online insurance form and an insurance representative will contact you shortly.