Home Insurance
Most
Israeli insurance policies cover damage and loss due to fire,
lightning, hail, smoke, theft and similar events that may occur during
the policy period. Most Israeli insurance companies exclude coverage
for damages due to acts of war, nuclear accidents, earthquakes, etc.
(There is a whole totally different insurance system financed by the
government that will pay you for damage due to war or terrorist acts
that occur in Israel such as damage to your house from mortars.) Many
different types of additional coverage may be purchased as a "rider" or
an "endorsement" to the policy—but of course at an additional cost.
The
language and the terms of the standard Israeli insurance policy are
determined by the Knesset, the Israeli legislative body, and not by the
insurance companies. It is possible to add additional conditions to
your policy but it is illegal to take away items from the minimal
threshold.
Property Loss
Policies
will generally pay for building repair or rebuilding costs, if the
structure is covered, for a home damaged by a covered event. They will
also generally pay for the replacement of lost or stolen personal
property. In most cases, the insurer pays to replace the lost or
damaged property without any depreciation deduction but there are
exceptions to this rule.
Third Party Liability
All
home owner insurance policies in Israel cover liability arising out of
injury to a visitor or guest (but not a family member) and any damages
caused by homeowner negligence on the property. Home owner policies
will also cover actions by the insured away from the property that may
result in legal liability as well as the costs of legal defense.
Please note that there are different types of Home Insurance coverage.
The
purpose of this short introduction is to give you a general idea of the
various types of coverage available. Because most home insurance
policies are in Hebrew, it is very difficult for new olim, whose grasp of the Hebrew language is usually lacking, to understand all the nuances of the various policy clauses.
Even
if your insurance company presents you with an English copy, it is only
the Hebrew version which will be used in court in case of a dispute.
Special Extra Coverage
Any
additional coverage on your home policy will cost you extra money.
Please be advised that it is not always worth it to pay for that extra
coverage.
A special policy called an all-risk policy (Kol Hasikunim) can be purchased.
Here are some items that can be insured for an additional amount in an all-risk policy: Cameras, jewelry.
If
one of your water pipes burst and you find yourself with water damage
in your home, the insurance company may send its own plumber as well to
fix the damage. If there is a lot of damage, the insurance company will
send an insurance appraiser to your house (called a shammai) as well!
To
cover damages that take place due to an earthquake (and Israel has had
a number of small earthquakes in recent years in all parts of the
country). You will have to pay an extra premium of approximately 0.105%
of the cost of the total contents of your house and the structure that
you wish to insure.
Insurance for the repair
of your large electrical appliances will cost you approximately 400
shekels in 2009. It is important that you way the cost of fixing your
appliance vis a vis taking out insurance. If you do take out
insurance for your appliances make sure that you know exactly what will
or will not be covered—for example the plastic drawers in the
refrigerator are not covered by insurance and so on.
Prices
Due
to competition—and there is a lot of competition—insurance prices will
vary. But do not necessarily be swayed by the cheaper prices. The
latest Israeli phenomenon of Direct Insurance (bituach yashir)
may be cheaper to purchase but if there is a problem you will not have
an insurance agent standing beside you. You will be on your own. A good
insurance agent is very important and it is a good idea to ask around
and see which companies pay out when there is a claim with the least
amount of hassle to you the consumer.
Insurance
agents are out to make money and the way they do that is by selling you
insurance. The more they sell, the more they make. They may try to
convince you to take out additional coverage. Remember: You don`t have
to do that. Do what is good for you.
There is also another list of additional coverage.
If you have a specific problem, we will be willing to check out your policy for you.
Please understand that this introduction is NOT a substitute
for reading your policy and understanding it by any means. If you have
any questions bound to your policy, please contact us and we will be
glad to help you as much as we can and give you our best advice.
Sincerely,
