Short term insurance is insurance for the possessions that an individual owns, and short term insurance is usually taken out for your home, the contents in your home, and your car. When you purchase short-term insurance you are protecting yourself against the possibility of losing your belongings and having to replace them yourself. Now the insurance company carries that risk, and in exchange for taking on this risk they charge you a monthly fee (the premium). The size of the premium depends mainly on the overall amount for which you wish to be insured. When you purchase short-term insurance you must be fully aware of the conditions of your policy. These conditions must be met otherwise your claim might be denied. A prime example of this in South African short-term insurance is with car insurance where the policy might insist that the car is equipped with a vehicle-tracking device. If your car is hijacked and does not have the device installed your insurance company might not honour the claim. The obligation is yours to see what the policy requires and what the policy may exclude.