Everything you need to know about home insurance in Israel

In Israel, the "Insurance" budget of a household represents on average 20% of family income. Yet the emphasis is mainly on health and protection insurance, and much less on home insurance.

Israelis, who have often seen their loved ones suffer from the shortcomings of the public health service or be thrown into hardship by the sudden death of a spouse, prefer to protect themselves on the health and life side. The result: when they are owners, they most often settle for insuring the "walls" as the bank requires, neglecting other cover that is nevertheless essential.

1. Walls insurance

This cover concerns owners, whether they live in the property or not. It pays to restore a home after a loss: plumbing problem, short circuit, partial or total fire inside the apartment or house.

The rebuilding value is the same everywhere in Israel, from Mitzpe Ramon to Tsahala in Tel Aviv. The rate ranges from 6,500 to 9,000 shekels per square metre depending on the specification. A 75 m² apartment is therefore insured for at least 487,500 shekels.

Please note: damage caused by rain is not covered, unless there is a storm officially declared by the Israeli meteorological service. On the other hand, earthquake cover is generally included de facto in Israeli policies; refusing this cover requires signing a waiver, and some companies may refuse to insure you.

2. Land value

This cover is rarely mentioned by insurance firms because it has a cost, and yet it is particularly important for owners of apartments in buildings.

It does not concern individual houses (the land belongs to the owner, who can rebuild independently of the neighbours), but only apartments: if a fire or gas explosion destroys the whole building and the majority of co-owners are not insured for land value, the building cannot be rebuilt as it was. This is what happened in Netanya and Ra'anana in recent tragedies.

Land value is calculated at 3 to 4 times the value of the walls. For a 120 m² apartment with a walls value of 780,000 shekels, the maximum land value will be 3,120,000 shekels. The walls value is not added to the land value: it serves as the basis for the calculation.

The compensation procedure takes at least 6 months, the time for the company to confirm that the building will not be rebuilt. Without this cover, owners are compensated only for the walls, not for the real value of their property.

3. Contents and jewellery

This insurance concerns owner-occupiers and tenants. It covers the value of the contents and jewellery in the event of a loss or burglary.

If the amount to be insured exceeds 200,000 shekels, ask your company to appoint an expert every 4 years to draw up a detailed list; this valuation is paid for by the company. In any case, keep photos, videos and invoices of your belongings.

4. What else you should check

The more floors the building has, the higher the risk of a loss, and the more expensive the premium. Other points deserve attention when you take out the policy: third-party liability, cover for terrorist acts (rockets, attacks), and the excesses applicable to each claim.

For any further information, contact us directly on 054 307 0916 or via the contact form.