Extended Cover in Short Term Insurance

When we take out short term insurance cover the basic reason is to protect our assets against damage or loss. Whether it is your car, your house or the content of your house that you wish to take out insurance for, the basic principles remain the same. Having said that, everyone has different needs and when it comes to short term insurance the first thing you need to do is to clarify your insurance needs. Once you have done that you can investigate the different insurance products that will meet your need and your budget.

The importance of clarifying your insurance needs correctly cannot be over-emphasized. What may be a total luxury for one person may be the next person’s basic need, depending on lifestyle and affordability.

What is basic insurance cover?

Nowadays you have a large variety of products and insurance companies to choose from. Insurance products all start with the basic cover – meaning that it will cover the most basic or important needs, without the frills. Basic insurance cover will be your cheapest form of insurance, but, having said that, you need to make sure that it provides you with sufficient cover to compensate for any major loss.

If we look at car insurance products, for example, you can take out basic cover which will only cover third party claims. This is the lowest entry point in the car insurance business. From there a number of products are available for example comprehensive car insurance and specialized insurance such as executive cover, off-road cover and even exotic car cover.

What is extended insurance cover?

Almost all insurance companies have a number of extended benefits or additional cover which you can add to your basic insurance policies. Extended cover can take on many forms depending on the type of policy we are dealing with. Let us look at some examples:

House content or House holder insurance extended cover

Householder’s insurance covers the content of your house against insured perils such as fire, theft and storm damage. It also includes items held in your outbuildings as well as garden furniture. The cover is in place for as long as the insured items remain in your house. But what happens if you take expensive items out of the house, like we all do every day? Think of your jewellery, expensive clothes, cell phones and laptops. To cover those items you take out the house can be done by taking out extended cover and specifying those items in your insurance policy.

Some insurance companies now offer you extended theft cover. This extension can be taken out if your home does not meet the minimum security requirements. It can also be used in situations where you often leave your home unoccupied for periods exceeding sixty days.

Extended personal liability cover

Most short term insurance companies have personal liability cover included in their basic policies. Most of them will also offer you extended personal liability for an additional fee.

Extended cover in car insurance policies

Car insurance companies also have a large number of extensions that can be added to your insurance. To name but a few:

  1. Shortfall extension. Should your car be written off as a total loss you may find that there is a shortfall between the amount you still owe on your car and the amount the insurance company will pay as a settlement. Shortfall extension will cover this.
  2. Theft of personal belongings left in your car.
  3. Loss of keys and replacement of locks.
  4. Excess extension. This will cover your excess to a certain limit.
  5. Roadside Assistance.

Extended homeowners insurance

Homeowners insurance covers the physical structure of your house and fixtures inside the house. You could take out extended insurance such as subsidence and landslip, geyser and accidental breakage of glass; again we are only giving a few examples here.

Exclusions and Extensions

What you will find is that many of the risks or perils listed in your short term insurance policies as exclusions can actually be included as extensions. It’s all a matter of your needs and affordability.

Conclusion

We have merely touched on a number of the extended cover options that are available. Short term insurance companies have become much more flexible and you can almost design your own insurance product around your personal needs. Of course, you well pay extra for any extensions but nothing is cast in stone. You may require an extension for a specific period only and can always have it removed when the need of longer exists.