Short Term Insurance

Short-term insurance provides financial protection against unexpected losses or damage to assets such as vehicles, homes, household contents, and personal belongings. Policies are usually renewed monthly or annually.

An excess is the amount the insured must pay towards a claim before the insurer pays the balance.

Comprehensive cover protects the insured vehicle against accidents, theft, hijacking, fire, natural disasters, and damage caused to third-party property.

Third-party insurance covers damage that the insured causes to another person's property but does not cover damage to the insured's own vehicle.

Underinsurance occurs when an asset is insured for less than its actual value. This can result in a reduced claim payout due to the average clause.

The average clause allows the insurer to reduce a claim payout when the insured property is underinsured.

Clients must disclose all material information that may influence the insurer's decision to provide cover or determine the premium. Examples include previous claims, criminal convictions, vehicle modifications, and existing damage.

A premium is the amount paid by the policyholder to the insurer in exchange for insurance cover.

The client should ensure everyone is safe, obtain details of all parties involved, take photographs if possible, report the incident to the police if required, and notify the insurer as soon as possible.

Common reasons include non-disclosure of important information, policy exclusions applying, premiums not being paid, fraudulent claims, and breach of policy conditions.