Home insurance is not mandatory in Israel, except for those who take a mortgage and the bank requires them to insure the house or the apartment to secure the loan.
Whoever rents an apartment must check whether there is a clause in the contract that requires insurance. Many tenants are not aware that even if they were not obliged to insure the apartment, there is a small clause in the contract that requires them to return the rented property as they received it, and if damage was caused to the structure (for example due to a fire caused by negligence) The tenant will have to pay hundreds and even thousands of shekels to cover the damage.
As apartment owners as well as tenants, we are likely to encounter damages that will force us to spend a lot of money, for example as a result of water damage. A home insurance policy provides the financial protection when there is a claim.
Usually, when it comes to home insurance, people say, “why do I need insurance, there is nothing to steal” Home insurance is important especially when it comes to fire, water damage, storm damage and earthquake, in addition to burglary.
Another important coverage is for third party damage or injury that may be caused to a neighbor or a guest who are injured in our home.
How much does home insurance cost? The average cost of insurance is around 1,400 NIS per year. The minimum cost of insurance for students who rent an apartment, is around 400 NIS only. For large families living in big houses with valuables, the cost will be around a few thousand shekels per year.
To sum up: Although apartment insurance is not mandatory, our home is our greatest asset, and at a relatively small cost we can purchase protection and reduce large expenses that may occur.