Apartments are exposed to a wide variety of risks and therefore one of the popular insurance policies in Israel is apartment insurance. This article will review the main issues that have to be taken into consideration when taking out apartment insurance.
What does apartment insurance include?
The insurance covers three main elements:
Structure insurance: Insures the structure itself, as well as anything attached permanently to the structure such as heating and plumbing installations, built-in closets, pergolas and so forth. The cost of the insurance is determined as the rebuilding value of the structure.
Contents insurance: Insures the mobile accessories in the home (furniture, decorative items, clothing and contents of closets, and of course valuables such as jewelry, and Jewish ritual objects).
Third party liability: Insurance that covers the liability of the insured to a third party to any person that does not reside in the house that may be injured by the insured. The insurance covers the household workers.
What are the insurance risks?
The main risks are fire and smoke damage, additional damage is water damage caused by water leaks from plumbing installations and piping or flooding from the outside. Another risk that is covered is burglary risk, as well as natural disasters, storm, lightning and of course earthquakes.
Important highlights for the insurance policy of an apartment:
1. If the apartment is not occupied for more than three months a rider must be purchased to cover an unoccupied apartment.
2. Jewelry may be insured against all risks (also outside of the house) and against additional risks.
3. In an apartment for which a mortgage was taken, a corresponding lien must be included as per mortgage bank requirements.
4. An apartment insurance policy does not have to be purchased as one package. The structure may be insured separately, or the contents separately, and third-party insurance may be included accordingly, in a rented apartment the insurance should be adjusted to it.
5. When issuing the insurance, a contents evaluation should be carried out by a professional evaluator and the evaluation should be updated every few years (at the insurance company's expense).
6. It is important to comply with the requirements of the insurance companies to install security measures such as alarm systems, bars or a safe, which might constitute a pre-condition for burglary coverage and/or following a burglary.
To summarize: Apartment insurance is one of the most important insurance policies for our assets, it is comprised of several chapters and it is wise prior to purchasing an insurance policy to investigate the needs and the riders that may be obtained and to adapt the insurance policy in the best way.
The author is a client portfolio manager at the American desk (Centurion Desk) at El-Ad Insurance Agency Ltd. firstname.lastname@example.org.
El-Ad Insurance Agency Ltd.
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