Let’s be honest. Nobody wakes up excited to pay their car or home insurance premiums.

It is the ultimate "grudge purchase". You pay for something you hope never to use. Every month, you see that money leave your account, and if you are lucky, you get absolutely nothing in return but silence (and peace of mind!).

Because of this, it is easy to view short-term insurance as a nuisance. We treat it as a commodity, something to be stripped down to the lowest possible price so we can get on with the "real" business of building wealth.

But in a comprehensive financial plan, short-term insurance is not a nuisance. It is the moat that protects the castle.

We often compartmentalise our money. We have our "investment pot" (for the future) and our "expenses pot" (for today). We view them as separate ecosystems.

But they are deeply connected.

Imagine you have spent ten years diligently contributing to an investment portfolio. You have compounded your returns and stayed disciplined. Then, a fire damages your home, or a car accident occurs, and you find you are underinsured.

Where does the money come from to bridge the gap?

It comes from the "investment pot". You have to liquidate assets—often at the wrong time, triggering tax and locking in losses—to pay for a short-term crisis.

In a single afternoon, an insurance event can undo years of investment discipline.

This is why ensuring your assets are correctly covered is a key part of your financial strategy.

It is not just about replacing a stolen television, laptop and cellphone, or fixing a bumper and front gate. It is about ring-fencing your long-term wealth so that it never has to be raided for short-term emergencies.

The biggest risk we often see isn't necessarily having no insurance; it is having outdated insurance.

Life changes fast. You renovate the kitchen. You buy better equipment for your hobby. You upgrade your engagement ring. Inflation drives up the replacement cost of building materials and vehicles.

If your policy hasn't been updated to reflect these changes, you might be "average" insured. This means the insurer will only pay out a percentage of your claim, leaving you to foot the bill for the rest.

We don't just plan for markets, we plan for life. And part of planning for life is acknowledging that accidents happen. So, take a moment to look at your short-term cover with fresh eyes. Don't just ask, "Is this the cheapest premium I can get?" Ask, "If the worst happened today, would my long-term plans remain intact?"

If the answer is yes, then that monthly premium isn't a cost. It is the price of peace of mind. It is the fee you pay to ensure that your financial freedom remains uninterrupted, no matter what happens on the road or at home.

Build the castle, yes. But don't forget to maintain the moat.