There are a number of reasons for taking out short term insurance.
1. Cover for theft or loss
Unless you have plenty of cash lying around to replace items that have been lost, stolen or damaged quickly, you need short term insurance of some kind. You can opt for an “all cover” type of insurance that covers all risk to your car and your home contents or with specific and separate cover such as car insurance or house, building and home contents insurance. You can also specify insurance for personal portable possessions such as cell phones and laptops.
2. Cover for accidents
Accidents can happen in a blink of an eye. You take your eyes off the road for a second or two and the next thing you know you’ve bumped the car in front of you. Having insurance means being able to pay for the damage. There are three types of car insurance options on offer in South Africa.
- Comprehensive car insurance covers your own vehicle as well as the third party. It also covers your vehicle for theft or fire.
- Third party, fire and theft car insurance covers your car being stolen or damaged in a fire as well as damage to someone else’s car or property.
- Third party only car insurance covers damage to another car.
3. Cover against natural disasters
There has been no shortage of natural disaster damage to homes in South Africa. Think of the hail in Johannesburg, rain and flood damage in Kwazulu-Natal and wind or fire in the Cape. Having homeowners insurance gives you peace of mind when it comes to replacing what you have lost due to fire, theft or natural disasters. Homeowners insurance provides structural buildings insurance while household insurance covers the contents of your home.