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Short-term insurance

Short-term insurance is insurance that you take out to cover you against financial losses you could suffer due to sudden and unforeseen events.

What is the difference between long and short-term insurance?

The easiest way to distinguish between the two is if the contract is insuring a life event relating to a human being, like death, disability, or retirement, it is long-term insurance. Anything else would be regarded as short-term insurance.

What are the main types of short-term insurance?

Common types of short-term insurance are car insurance, medical insurance, building insurance, household contents insurance, single items insurance, and personal liability insurance (where your insurer will reimburse you in certain instances where you are held legally liable for damaging someone else’s stuff). Other types of short-term insurance include pet insurance, business insurance, and travel insurance.

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Personal liability cover

Personal liability cover protects you (financially) if a lawsuit or claim is brought against you for causing bodily injury or property damage – in and away from your home.

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Total loss

A total loss happens when your insured house is so damaged by an insured event that it cannot be repaired.

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Sum insured

A sum insured is the maximum amount that your insurer will pay if you make a claim for a covered event.

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