Personal Insurance

what it covers

What is Short Term Insurance?

Any type of insurance, other than life insurance, can be referred to as short-term insurance. This is because life insurance is, as the name suggests, for life. Short term policies, on the other hand, are only taken out for the period of necessity.

For example, you aren’t likely to own and insure just one car for your entire lifetime. A short term policy thus refers to the length of time you own that specific vehicle, however long that might be.

A short term policy is an agreement between the insurer and the policy holder that covers a limited amount of time. It can also be flexible, based on the circumstances of the policy holder.

The phrase ‘short term’ may not be short in the strictest sense, but it describes the dynamic nature of the insurance of possessions as opposed to one’s life.

Examples of Short Term Insurance

Short term policies basically apply to the possessions you might want to insure for limited periods of time. Some examples of short term insurance are:

• Homeowners or Buildings Insurance : Insurance of your home (the building itself) against damage

• Motor Vehicle Insurance: Insurance of your motor vehicle against damage, fire and theft

• Household Contents Insurance: Insurance of the contents of your home against damage and theft

• All Risks Insurance: Insurance of the belongings you carry around, such as cell phones, cameras, jewellery, etc.