Short-term insurance is a way of reducing the cost of risks to your property or possessions, the risks may include, (accidents, losses, damage, and fire). You pay a monthly fee and if you lose something through an accident or another event, you may claim from your insurance company. It usually covers belongings and not life-changing events.
You have a variety of assets. Some will last a lifetime, and some may only last a few months or years. Different assets can be damaged or lost through different causes including fire damage, accidental damage, theft and damage through acts of nature such as lightning and storms. You choose cover based on your circumstances for some of these causes above. You may also want cover for a third party or where you cause loss or injury to another person or company due to an accident or an act of negligence.
- With short-term insurance note that you will be required to pay the excess in case of an event happening and you require to claim. An excess is the amount of money that you, as the insured person, are responsible for in the event of a claim.
- Ensure that all your asset descriptions are correctly noted. If the value or the description of your asset is not accurately noted in your policy schedule, you could have problems when submitting a claim which could result in your claim not being settled to your satisfaction or worse being rejected.
- It is important that you keep track of the belongings or assets you have insured and you review and make updates if changes happen, for example, if you sell or give away the assets.
- When your details change, inform your insurance company, for example when your address changes, be it your home or work address, inform your insurance company, and it may affect your cover.
- Before deciding on insurance, check your budget and see what monthly payments (premiums you can afford) shop around and compare quotes from different companies.
- Reviewing your insurance regularly as your circumstances change is important to ensure that you are not over or under-insured and to help avoid difficulties when you need to claim.
- If you are taking insurance and you have a complaint or feel you were treated unfairly you may complain with the insurance company involved and if more than a month has passed and you do not get assistance you may complain with the following Ombud offices:
- The Ombudsman for Short-term insurance at 011 726 8900 or info@osti.co.za, or www.osti.co.za or the Long-term Insurance Ombudsman Tel: 0860 103 236 or visit the website: www.ombud.co.za