When insuring the contents of your home, there are different types of policies available.
Contents insurance will cover all items that are detached from the structure of the house. Built in appliances, fixtures and fittings would be added to the structure insurance.
Contents can be insured against:
- Fire damage
- Water damage
- Terror activity
- Natural disasters
- 3rd-party public liability
The cost of contents insurance will depend on the level of cover required and the risks insured. We will be happy to advise you on this.
Valuable items such as jewelry, art and stamp collections will need to be appraised in order to have the appropriate level of insurance for those specific items. Mark Joffe works closely with an appraisal company that will appraise all types of jewelry and valuables in your own home, at no extra cost to you.
Items of value that are often taken outside the house (e.g. jewelry, laptop computers, smart phones, cameras, musical instruments), can be insured on an ‘all risk’ basis anywhere in Israel, except if they are stolen from inside a car. The ‘all risk’ component will cover all loss and damage excluding wear and tear and may be extended to include world-wide cover should you wish.
Bicycles can also be insured on an ‘all risk’ basis to cover 3rd party damage as a result of an accident.
As part of the contents insurance, 3rd party liability cover is added to cover the policy owners for accidents that not only occur in their home, but also caused to neighboring property. 3rd party liability can be extended to cover business activity, swimming pools and other specific activities.
Olim Chadashim who are shipping their contents should be aware that maritime insurance provided by the shipping company is only valid until delivery. Therefore, it is recommended to be in contact with us prior to your Aliyah or upon arrival to ensure that the appropriate coverage is in place.
Renter’s Insurance – contents insurance
Tenants do not need to take out structure insurance (unless otherwise stated in the rental contract), as the property does not belong to them. Instead, they should verify that the landlord has structure insurance.
There have been cases where damage to a property’s structure as a result of the tenant’s negligence, have led to the insurance company of the landlord suing the tenants for the repairs.
Likewise, damage caused to contents as a result of a landlord’s negligence, have led to cases where the tenant’s insurance company have sued the landlord.
In the situation where the tenant has contents insurance and the landlord has structure insurance, a clause can be written into the leasing contract called Bitul Se’if Shibuv (cancellation of subrogation clause) at no extra cost to protect both parties and prevent any possibility of being sued for negligence.
War damage is covered by the government (Mas Rechush) up to a maximum of approximately 40,000 NIS, this does not include valuables such as jewelry and silver. You can purchase under the normal Renter’s Insurance policy additional coverage to cover the full value of your contents above the amount covered by the government.
While the contents of your property may be covered, it is also important to remember to insure the physical structure of your property. As with contents insurance, structure insurance can cover fire damage, water damage, earthquake, terror activity & vandalism. The main consideration is in the event of total damage as a result of one of the aforementioned causes.
War damage caused to the structure is covered in full by the government (Mas Rechush) and not by the insurance policy.
Structure insurance is calculated in two possible ways:
Rebuilding Value Insurance:
This covers the cost of rebuilding the structure in the event of total damage, giving you the ability to rebuild your structure on the property/land that you already own. The disadvantage in insuring the rebuilding value, is that the rebuilding of the structure may be delayed or dependent on your neighbours’ ability to rebuild.
Market Value Insurance:
This covers the market value of your property. This would cover both the construction costs together and the land value. In the event of total loss, for example an earthquake, you could take the full amount of compensation and build elsewhere. This insurance is only relevant if you live in an apartment building.