As the Covid-19 lockdown nears the one-year mark, consumers are feeling an increased financial bite, especially as so many South Africans are working from home.

In numerous cases all family members are home-based and having to update connectivity, install technology and create study and work spaces which puts additional burden on budgets.

Short-term insurance of your assets is often seen as a grudge purchase. But before you consider taking the dangerous step of reducing or even cancelling your insurance cover, the Financial Intermediaries Association (FIA) advises caution.

“We are not talking about losing a cellphone, but rather the unexpected catastrophes like a severe motor accident, home fire, robbery or total loss of earnings,” says Barry Taylor, chairman of the FIA’s Short-Term Executive Committee.”

Your non-life (short-term) insurance can cover all your needs – household contents, buildings, personal effects, vehicles, personal accident, travel, protest damage or liability cover. Many consumers don’t know that you can ask for a more flexible package so as to ensure that your essential assets are covered. A professional and experienced financial services intermediary/broker will help advise you on the most suitable cover for your needs.

When considering cancellation of your non-life (short-term) insurance cover, ask yourself if you have the financial means to reinstate everything should you fall victim to an extreme event. According to Taylor, an estimated 90% of consumers do not have the kind of funds to rebuild a house or replace an expensive car.

If you have experienced serious damage – vehicle accident, hail or storm damage to property, burst geyser, or road accident, -you are probably thankful you had the right insurance policy in place and to have experienced support from your intermediary/broker.

Unexpected issues arise when you least expect them and place extra strain on already stretched household budgets. A call to a trusted broker or financial advisor and the professional advice and assistance you can expect, may well prove to be priceless.

Benefits of using a professional financial intermediary/broker/advisor:

A holistic view of the industry saves you time researching options;

Thorough analysis of your needs and budget;

A risks assessment and appropriate advice will ensure you are not over or under-insured;

 Intermediaries provide continuity, managing your portfolio as circumstances change;

Small print and jargon will be unpacked up front, avoiding surprises and disappointment; and

Assistance with the claims process will save you time.