The recent wave of fires across the country has illustrated to all of us the extent to which this is a real danger hovering over private property and businesses at any given moment. The causes of a fire can be many and varied, whether it is deliberate ignition or a short circuit. Fire damage may be severe and cause heavy damage to property, structure and damage to property adjacent to the source of the fire (third party damage).
Standard policies (business or apartment) do not cover
. If the structure of a person’s home or business is damaged as a result of terrorist damage, the property tax is responsible for the construction or renovation of the property.
However, if the contents of the house or business are also damaged, it should be known that the property tax does not provide full compensation, except according to compensation ceilings. For example:
|Types of contents
|For a married couple or single parent
|Per child (up to 18 years old)
|For an adult living with a couple or a single person
|Electronics & Appliances
|Other household object
Compensation is carried out according to the price list of the types of “household items” and the size of the family. However, in any case, there is no entitlement to compensation for the loss of cash and checks, jewelry and art objects damaged in the incident. Receiving compensation can be delayed for years. An appeal may be submitted to an appeals committee within 30 days from the date of the decision on the amount of compensation.
Many people forgo an extension to a terrorist incident in their home insurance because this coverage involves an additional premium, but as we have seen recently, it is sometimes worth considering adding this coverage.
If there is home and contents insurance, and the value of the contents insured in the policy is higher than the compensation ceiling of the property tax, the insurance company will return the gap to the policyholder, so that he can return to the standard of living to which he has become accustomed as quickly as possible.
Other important tips
- Do you have mortgage insurance? It is important to know that mortgage building policies include only coverage for the building itself without coverage for the adjacent buildings (anything permanently connected to the structure such as: sanitary ware, kitchen, air conditioner and more.). In addition, mortgage insurance purchased through the bank does not contain coverage for damages to a third party and this coverage cannot be added to insurance through the bank. All of these deficiencies are provided in structure insurance through an agent at no additional cost. It is also possible to add a cover to the contents of the apartment. It is important to check the amount of coverage. In many cases, there is underinsurance and the compensation is only partial.
- Fire coverage for businesses – businesses are advised to purchase extended fire insurance that also provides coverage in cases of water damage and flooding, burglaries, employee strikes, employers’ liability and more…
- Water damage – standard policies have coverage for water damage by service providers selected by the insurance company. In many cases, there is a long delay in handling the damage and it is recommended to extend coverage to the service by a private plumber. It’s worth every penny extra.
- Underinsurance – When conducting contents insurance, a survey must be required in order to accurately assess the value of the contents, otherwise many times the compensation from the insurance company is only partial. It is recommended to require such a survey to be conducted every 3 years.
- Third party – this coverage is one of the most important in home insurance, and its essence is to prevent the exposure of the insured to a financial claim for bodily injury or property damage. As stated, if you insured your home through the bank as part of the mortgage insurance, there is no third party chapter in the policy. The definition of third party is any person except first-degree relatives, household workers and permanent residents. If you have a domestic worker – such as a housekeeper or cleaner who is declared by the National Insurance Institute, you must purchase coverage for them called “Housekeeper Liability”, usually this chapter is free of charge. If they are not declared by the National Insurance Institute, you are exposed to a high financial claim since it is usually a loss of work capacity.
- Rented apartment –
- If you are the property owner – it is important to take care of proper building insurance that includes coverage for a third party in which the tenants are covered (as opposed to the above that tenants are not regularly covered). It is important to know that alternative housing coverage gives you financial compensation in case of lost rent for up to 12 months.
- If you are the tenant / tenant – it is important to insure your personal contents against the above risks, since the contents are not covered as part of the property owner’s building insurance. In addition, you must make sure that the landlord has included in his building insurance a clause called “reclamation waiver” – in the event of damage to the property caused by your responsibility as a tenant, the insurance company may claim the amount it paid to the property owner from the cause of the damage – the tenants. When the property owner signs a waiver of the right of restitution, the insurance company is prevented from suing the tenants. This clause is purchased in the policy free of charge, so there is no reason for the property owner not to add it.
- Land value – an amount for additional insurance in a condominium – Due to the increase in housing prices in the country, the value of the land is a monetary amount that cannot be ignored. We recommend that policyholders who live in condominiums purchase “additional insurance amount” coverage. This coverage insures money, which usually reflects the difference between the value insured by the insurance company and the cost of buying the property.