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.
While policies are required to conform to a minimum level of coverage laid down in law, most companies provide a much more extensive level of coverage.
• Property insurance is designed to insure against fire, rain, snow, hail, break-in, willful damage and third party liability.
• If you have taken out a mortgage, you are required to insure the property, the policy being written in favour 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.
• The rate for property insurance including earthquake coverage and third party liability is approximately 100 NIS per 100,000 NIS cover. If earthquake damage is not covered, the premium reduces to 50 NIS per 100,000 NIS.
• Properties are valued for insurance purposes according to the cost of construction, at a rate of $800-$1,000 per sq. m.
• If you are planning on leaving the apartment unoccupied for more than 60 continuous days, an additional premium is charged for both property and contents insurance.
• The house policy also includes cover for plumbing repairs, at premium of 243 NIS: you have the option of having an insurance company-approved plumber do the work, in which case you would pay him the deductible amount of 422 NIS. If you elect to have your own plumber do the work, this would entail a premium of 547 NIS and a deductible of 845 NIS.
JONATHAN MARCUS INSURANCE
7/12 HELLER ST. P.O.B. 7451, 91073 JERUSALEM.
TEL. 02-5634645, 02-6254488 FAX 02-5610211 MOBILE 054-4757622