Short Term Insurance

Over 55 years of Trust and Friendship

Short Term Insurance Is Not About Time

Short term insurance is a category of insurance that provides cover for your possessions or assets that are either owned by you or your business.

Financial jargon can be very misleading. At Reid Raetzer, we do our best to explain insurance policies and benefits in the simplest possible manner. 

In partnership with our clients for almost 55 years, we constitute a formidable force in the South African insurance market and employ our collective strength to not only negotiate better terms and rates than those normally available but to deliver on our service commitments. We tailor comprehensive insurance solutions to meet each client’s unique requirements.

We deliver on our service commitments!

Personal

The things that you own are not just “things”, but in most cases they reflect who you are. Whether you purchased a house or a cell phone, the final decision was driven by your personal taste. If something were to happen to these items, we understand that feeling of loss. That is why we offer comprehensive insurance solutions that are tailored to your personal needs.

Commercial

At Reid Raetzer, we understand how difficult it is to build a business, maintain cash flow and increase profits, especially with all the external risks we face in South Africa. Our Business Brokers will partner with you to protect your potential for growth by assessing the risks that could disrupt your cashflow, or worse, close your doors.

Personal

The things that you own are not just “things”, but in most cases they reflect who you are. Whether you purchased a house or a cell phone, the final decision was driven by your personal taste. If something were to happen to these items, we understand that feeling of loss. That is why we offer comprehensive insurance solutions that are tailored to your personal needs.

Household Contents Insurance, also known as contents cover, provides cover for your possessions that are on your residential premises. These items are what make your house a home and if a loss or damage is suffered, they can be replaced at new replacement value. When applying for this cover, our experienced staff will assist you in calculating the amount of cover you need. 

This cover is calculated by taking into account all of your possessions at your residential premises and estimating what it would cost to replace these possessions at new replacement value. This will ensure that if you should need to claim, you will have an adequate cover amount that provides for your household contents and we will be able to help restore you to the position you were prior to your loss.

According to policy definition, a motor vehicle can be a car, a 4×4 or a motorcycle and we rely on these modes of transport on a daily basis in South Africa. Reid Raetzer will tailor your motor policy to meet your specific needs to ensure that your vehicle is correctly covered and that we keep you moving.

We can insure your vehicle under comprehensive cover or third party, fire and theft and this is done at the retail value of your vehicle. We can also insure you for third party only. It is important to note whether your vehicle is for private use only or for business use as well. These are some of the sections that one of our experienced staff members will guide you through to ensure that you are correctly covered for the correct premium.

The building is essentially the structure of your home from the foundations and floors to the ceilings and roof. It includes all solid infrastructure on the property, from gates to swimming pools, as well as the pipes, fixtures and fittings attached to them. Any property owner would acknowledge that there are risks attached to ownership which is why it is important to insure your house or any other buildings against loss or damage that may occur as a result of fire, explosion, subsidence and other acts of nature. Body Corporates can also cover common property against a range of risks.

In addition to the standard cover above, there are many additional areas of cover included when insuring your property with us. Our experienced brokers will be more than happy to guide you through the importance of insuring your property in the correct manner, help you understand the danger areas where you are not presently covered and walk you through the standard and additional cover benefits of our Building Insurance to ensure you have peace of mind knowing that your home is protected.

All Risks Insurance covers a wide range of accidental loss or damage that normally occurs away from your home. It provides cover for those items you generally keep with you or take out of your home on a daily basis such as watches, cell phones, laptops, tablets, handbags and accessories. 

This cover is split into two sections, specified and unspecified. Unspecified property is clothing and personal effects that are either worn or carried with you and are normally low value items. In the event of a claim, we will pay up to 20% of the sum assured (the amount of cover) for any one item. Therefore if you have R10,000 as your sum assured for unspecified property, we will pay R2,000 for any one item. Specified property is listed on your policy schedule in detail and normally these items are of high value such as watches, jewellery, laptops and cell phones. In the event of a claim, we will pay out the value of the sum assured (amount that the item is covered for).

Leisure Craft Insurance covers a motorboat or a sailing boat, along with their specified equipment and accessories. It may also include jet-skis and tenders. Don’t forget to ask us to insure your trailers should this be required, as well as any accessories sold with the craft. And if it floats your boat, you can also specify clothing, sea boots, fishing gear and other accessories.

Insurance Policy Wording Explained

At Reid Raetzer, our philosophy of service excellence and attention to detail extends even to our insurance policy wording. This means we carefully review each individual insurance policy before offering it to you.

When it comes to insurance policy wording definitions, it’s important to remember that insurance policies are in essence legal documents, a contract where the insurance company charges a premium to transfer risk from an individual or company to itself. The insurance company therefore needs to be fully informed on the risk it will be taking on in order to charge the correct premiums and to pay claims in full.

Reid Raetzer Assist

With Reid Raetzer Assist, our members enjoy peace of mind while travelling on the roads. Should they require roadside assistance, help is just a call away on 0860 734 372.

Paintless Dent Removal

Paintless dent removal removes small dents from your vehicle’s bodywork using the revolutionary cost and time saving technique of paintless dent removal.

Commercial

At Reid Raetzer, we understand how difficult it is to build a business, maintain cash flow and increase profits, especially with all the external risks we face in South Africa. Our Business Brokers will partner with you to protect your potential for growth by assessing the risks that could disrupt your cashflow, or worse, close your doors.

This covers losses as a result of fire, lightning, explosion, storm, wind, water, hail, snow, earthquake, impact by animals, trees, aerials, satellite dishes, vehicles, aircraft and other aerial devices or articles dropped there-from and malicious damage.

An extension is also available to include cover in respect of ‘Sprinkler Leakage’ should your premises have any automatic sprinkler systems installed. Other extensions of cover are also available so please discuss any queries with us in this regard.

Basis of Sums Insured:

Plant, machinery, fixtures and fittings, all other contents and tenant improvements.

The sum insured must be calculated at the new replacement value. Tenants improvements must also be included as well as sprinkler malfunction cover if applicable.

Stock

The sum insured must be at the Cost Price to you. (Raw materials, work in progress and finished products).

Buildings

Always take the following factors into account:

Fire Fighting charges, cost of demolition and removal of debris, professional fees, public authority requirements, new replacement cost of rebuilding the entire building, new replacement values of gates, fences, driveways, parking areas and lighting etc. We would also recommend that accurate escalation and inflation percentages be included.

Some important factors to be noted with regards to this insurance are:

  • Cover is subject to forcible or violent entry or exit from the building.
  • Theft by an employee (as principal or an accessory) is excluded.
  • Money is not covered and must be specifically insured.
  • Damage caused to the building is limited to R 5,000. (This can be increased.)
  • Theft of goods in the open is excluded.
  • Theft of building fixtures and fittings is excluded.
  • If your cover is subject to a Burglar Alarm Warranty you must ensure that the conditions are complied with.
  • This insurance is not subject to ‘Average’ and the Limit of Indemnity elected by yourself should represent the maximum value of goods that you estimate could be stolen as a result of burglary.

A Business Interruption Claim must follow a loss which would be covered in terms of the Fire & Allied Perils Insurance.

The Quantum of the Business Interruption Claim is established by applying the ‘Rate of Gross Profit’ to the Reduction in Turnover caused by the loss. The ‘Rate of Gross Profit’ is arrived at by applying the policy definition relative to your requirements to past trading results per your financial statements.

Cover is applicable for a ‘Period of Indemnity’ following the occurrence of the loss. The Period of Indemnity is elected by you and should represent the period that you estimate it would take to re-establish your business and re-attain turnover levels applicable, prior to the occurrence of the loss.

As the intention of this insurance is to provide you with your Gross Profit as if a loss had not occurred it is important that the sum insured is accurately based on the Budgeted Gross Profit for the current period of insurance plus, ‘trend’ for the relevant period of indemnity after the renewal date. This ensures adequate cover should a loss occur just prior to the renewal review.

There are various extensions of cover available on this insurance which we would be happy to discuss with you should you require any further information.

Some of these are:

  • Interruption of Public Utilities, ie: water and electricity.
  • Interruption of Public Telecommunications.
  • Interruption as key suppliers or customers premises plus a prevention of access to their premises.

Where a building is mainly occupied as offices or for residential purposes it is possible to insure same on a ‘Building Combined Basis.’

This basis includes the cover of the Fire & Allied Perils Insurance plus Theft following forcible entry to the building, Loss of Rent following an Insured Loss and Property Owners Liability.

It is important to note however that the ‘Loss of Rent’ cover will cease once the building can be occupied regardless of whether or not it is tenanted.

The basis of establishing the sum insured is the same as applicable on the ‘Fire & Allied Perils’ Insurance.

This insurance provides cover for legal liability for death, bodily injury or illness of an employee occurring in the course of and in connection with his/her employment.

As the Compensation for Occupational Injury and Disease Act would generally cover the above instances, the Employers Liability Cover would apply only in the event that compensation in unavailable in terms of the Act.

This is a very complex form of insurance and we would recommend that you discuss any specific queries which you may have in this regard with us.

Very briefly, this insurance covers your legal liability to third parties arising out of and in the course of your business in respect of:

  • Accidental death, bodily injury or illness to any person not in your employ
  • Accidental loss of or physical damage to tangible property not in your custody or control

The basic forms of cover available are:

  • Property Owners Liability
  • General Public Liability
  • Tenants Liability
  • Products Liability
  • Defective Workmanship Liability
  • Legal Defense Costs (statutes)
  • Wrongful arrest and Defamation
  • E.C. Liability

Other specialised forms of cover which can be obtained are:

  • Product Recall
  • Contaminated Products Liability
  • Defective Design/Inefficacy

This insurance covers the electronic equipment at your premises such as computers (including printers, modems, hubs, servers, cabling, software etc), fax machines, PABX systems, photocopying equipment etc.

The cover is on an All Risks basis (but theft must be accompanied by forcible and violent entry to the building) and is limited to your own premises only. It is important to note that loss as a result of wear and tear is not covered.

It is possible to extend the cover to include consequential losses such as:

  • Reinstatement of Data.
  • Increased Cost of Working.

This cover is subject to ‘Average’ and the sum insured must be based on the new replacement value of the property insured

This insurance cover is specifically for equipment that is used away from your business premises (such as notebook computers, mobile phones etc) or where specific All Risks Cover is required at your premises (such as closed circuit tv equipment, security cameras etc.)

Theft from unattended motor vehicles is not covered unless there is forcible and violent entry to the vehicle or any building in which the vehicle is parked.

Also specifically excluded are losses as a result of:

  • Wear and Tear
  • Dishonesty of any employee
  • Mechanical or electrical breakdown
  • Process of undergoing repair, cleaning etc

Other exclusions noted in policy documentation:

If any equipment insured is upgraded or changed we must be advised of the details of the new equipment including serial numbers. Sums insured must be based on new replacement value.

This section covers all contents within your office excluding electronic equipment which should be more specifically insured under ‘Electronic Equipment Insurance’

The sum insured must be stipulated at replacement value and not at the depreciated value.

Theft cover is limited to 25% of the sum insured and is subject to forcible and violent entry.

This insurance covers loss of money or goods which you may suffer as a result of fraud/dishonesty by an employee which results in personal financial gain for the employee.

The cover can either be arranged on a ‘Named Employee / Position Basis’ or on a ‘Blanket Basis’ covering all employees

It is important to note that cover excludes losses as a result of dishonest manipulation of any computer programme, system, data or software by employees in the data processing unit.

This insurance is not subject to ‘Average’ and you elect the Limit of Indemnity of the cover you require.

The Limit of Indemnity you elect should represent the maximum amount of money you would have at risk either at your premises or in transit to or from the bank.

There are important considerations with regard to this insurance, some of which are:

  • Cover in respect of money not contained in a locked safe out of Business Hours is limited to R 1,500
  • Theft of money by an employee must be discovered and reported to insurers within 14 days of the occurrence
  • There are limitations on the policy with regard to:

The amount of cover provided in a locked safe out of business hours dependant on the S.A.B.S category grading of your safe.

  • Money in transit depends on whether the same is in the possession of employees or a security company. Note: We strongly recommend that you refer to your policy documentation to familiarise yourself with these limitations as non compliance could severely prejudice your claim
  • Money in the possession of collectors or delivery drivers must be specified
  • Cover in respect of ‘receptacles’ is limited to R2,000. (This can be increased)

This covers internal / external glass including mirrors and sign writing. It is important to ensure that you are adequately covered for the full replacement value as this section is subject to average. Glass cannot be selectively insured and therefore the total value of all the glass, mirrors and sign writing must be included in the sum insured.

This section also provides other costs such as boarding-up frames, fixtures and fittings and the cost of hire for a watchman. The aggregate limit for the above is R 2,000.

This insurance covers property belonging to you whilst in transit by road (your own/hired vehicles or third party carriers), by air or by rail. Cover by sea can only be provided by a specific Marine Insurance Policy.

This cover is not subject to ‘Average’ and the Limit of Indemnity required is elected by yourself.

The Limit of Indemnity should represent the maximum value at risk that you would have on any one conveyance at any one time.

Note: Where ‘sold’ goods are being covered it is recommended that the Limit of Indemnity is based on ‘Insured Value’ and the policy noted accordingly.

Some important considerations with regard to this insurance are:

  • Cover can be on an ‘All Risks’ basis or restricted to ‘Fire, Collision and Overturning of the Conveyance.’
  • ‘Hijack’ losses (if on an All Risks Basis) carry a higher excess/first amount payable.
  • Theft (if on an All Risks Basis) from an unattended conveyance is not covered unless accompanied by forcible and violent entry to the conveyance or any building in which the conveyance is housed.
  • Inadequate packing could lead to the invalidation of a claim.
  • Losses due to breakdown of refrigeration equipment are excluded.

This insurance covers damage to customers’ vehicles either at or away from your premises. We would however recommend that you contact us should you require further information in this regard.