Tips on Insuring Your Home in Israel

When considering purchasing real estate in Israel, you should be aware of the following aspects of property and contents insurance as operated by Israeli insurance companies.

Property Insurance   is designed to insure against fire, break-in and theft, willful damage, water damage, earthquake and other natural disasters and third party liability.

• If you have taken out a mortgage, you are required to insure the property, the policy being written in favor of the mortgage bank. The mortgage bank offers an insurance scheme, which is normally about 10% more expensive than the policies offered by insurance companies, and also does not include third party liability, and contents insurance cannot be included in the policy.
• If you have a mortgage, coverage must also include earthquakes and water damage from broken pipes or installations. Otherwise, earthquake coverage is optional.
• Third party liability is for 500,000 NIS on a standard policy. This amount can be adjusted upwards if required.
• Properties are valued for insurance purposes according to the cost of construction, at a rate of $800-$1,000 per square meter.
• If you are planning leaving the apartment unoccupied for more than 60 continuous days, an additional premium is charged for both property and contents insurance.

Contents Insurance

• Contents insurance is designed to insure against fire, theft, earthquake, willful damage, third party liability, employer's liability, water damage, all risks coverage for jewellery, TV’s, video equipment, home computers, faxes and sound equipment.
•  All risk coverage can also be obtained for photographic equipment, cameras, video cameras etc.
• Valuation of contents is made by a licensed assessor, who would value all contents including jewellery and other valuable items.

Deductible

Whilst varying from company to company in general we are looking at around 460 NIS.  In the case of earthquake coverage, the deductible is 10% of the insured amount.

Michelle Binovitch-Reshet insurance Agency

"Serving your insurance needs in Israel since 1984"

972-8-9298889 972-54-677821

michelle@reshet-insu.com   www.reshet-insu.com