Different types of Short Term Insurance

08-28

There are different Types of Short Term Insurance, it is always good to familiarise yourself with them #ShortTermINsurance

There are certain unforeseeable and often unavoidable risks that go hand in hand with the ownership of property, assets and valuables. The best way to ensure that you have peace of mind and security is to hand these risks over to a third party, an insurer.

In exchange for an agreed sum of money paid regularly, an insurer will provide you with limited coverage should you suffer any loss, damage or liability to your property and assets or those of a third party.

There has been a surge in the insurance market in recent years, with the result being that you are able to insure an extensive range of things if you have the finances to do so. However, the most common types of short term insurance are property, household, vehicle and personal liability insurance.

Homeowners Property Insurance
Property insurance is one of the most common types of short term insurance because it is most often a condition for taking out a home loan. If your homes structure or fixtures are ever damaged in a fire, an explosion, a flood, in the case of a leak, impact, breakage, landslide or theft, your insurer will cover the balance after you have paid the predetermined excess.

Household Insurance
Household insurance policies provide cover for the contents of your home. This generally includes all furniture, electronic appliances and clothing. You will receive the insured amount to replace household contents in the case of theft, damage caused by natural disasters, impact, geyser bursts and leaks, and third party liability.

Vehicle Insurance
Car insurance is another common type of short term insurance because it is almost always a prerequisite for vehicle financing. There are three main types of vehicle insurance. Third party cover, third party fire and theft cover and comprehensive cover.

Third party car insurance will cover you for the insured amount when you cause damage to someone else’s property – be it a vehicle or a garage door. This cover includes damage caused to gates, other vehicles and property fixtures.

Third party fire and theft insurance will cover your damages in the case of fire or theft, and it will also provide cover for any damage to a third party’s property after a car accident.

Comprehensive car insurance will cover your own vehicle in the case of accidental damage, theft and hijacking, or damage that you may have caused to a third party. This type of car insurance will ensure that all of your bases are covered when it comes to unforeseen vehicular risks.

Personal Liability Insurance
There is no knowing whether you may one day find yourself in an accident where you are held liable for the death or injury of another person. Personal liability insurance is the best possible way to make certain that you are financially covered in the case of a terrible accident. If you are legally liable to pay compensation for the death or injury of a third party, there are insurance polices that will cover you anywhere within the region of R3 million to R10 million.

Things to Consider
Your premiums will be determined according to your individual set of circumstances as well as peripheral factors to do with the item that you wish to insure. This is a very good reason for you to be a conscientious owner who takes all the necessary steps to protect your assets.

An insurance claim can be lodged if one of the insured possibilities takes place. You will generally be required to pay a small excess toward the repair or replacement. Your insurer will pay the balance so long as you are not under insured. It is your responsibility to check that your cover remains relevant as time passes.

When shopping around for short term insurance, it is often a good idea to make use of a broker. This will usually allow you to gain a broader outlook of the variety of polices on offer.

Insure Brokers have professional specialist brokers who can assist in all the above to give you peace of mind. Contact us for a free consultation www.insurebrokers.co.za | (039) 316-6111 | yolandi@insurebrokers.co.za

Connect and share with us your INsurance related photos by tagging #INsureBrokers

Facebook | Twitter | Youtube | Google+ | Instagram | LinkedIn | Pinterest

Source: http://insurance.onlineshopping.co.za/shortterminsurance/types-of-short-term-insurance.php

Insure Brokers and Financial Planners is an authorised financial services provider, FSP number: 12874 | Disclaimer – This is for information purposes only and should not be construed as advice.