Lawyer in Israël


Insurance and property damage


Why take out insurance?

Taking out an insurance policy guarantees a person legal and financial assistance in the event of all kinds of damage. Anything can happen to any one of us and the high cost of the damage can be very difficult to manage alone, sometimes even impossible. Insurance exists to help us. Its purpose is to allow a person to manage the risks he or she may face, such as accidents, theft, health problems, long-term care, retirement, death, travel, mortgages, real estate, cars, transportation, credit, etc., and to come out the other side of a bad situation in more or less the same financial position as when the problem arose.

How does it work?

Anyone can take out insurance through the State, with a government insurance company, or through a private insurance company. In each case, the person insured agrees to pay monthly premiums and the insurer agrees to pay compensation (a one-time sum or in monthly instalments) to the insured in the event that damage occurs, according to the terms of the contract. The cost of monthly premiums will be determined based on the specific situation. For example, for life insurance, health care etc. the premium will depend on the age of the insured, his income, marital status and other considerations. In the case of insurance for goods, buildings insurance, contents insurance, etc., the premium will depend on the value of the item itself, whether it is new or old, in good condition or not, and so on.

What types of insurance exist?

There are some forms of compulsory insurance in Israel, such as social security fund health insurance and car insurance, with the aim of ensuring that everyone enjoys minimal assistance in case of illness, loss of ability to work, old age, disability etc. Other types of insurance are left to individual choice. There are three main classes of insurance: the first covers basic insurance (apartment, fire, vehicle, damage, etc.), personal accidents, work accidents, foreign travel, insurance for third parties, professional liability insurance for employers, managers and others. The second is life insurance, which ensures that the policy holder will receive help in case of illness, loss of ability to work or disability, or that when he dies his family ( or any other named beneficiary) will receive a sum of insurance money (either a lump sum or monthly stipends), the amount paid depending on the monthly premiums that have been paid and how long they have been paid for. The third is health insurance, which provides compensation in the event that the insured has health problems or is a dependent person.

Compulsory insurances

The purpose of Social Security is to protect everyone financially through monthly premiums everyone pays via salary, part paid by the employer and the other by the employee. The insurance will pay every month in the cases of disability, unemployment, poverty, pensions, pregnancy holiday, single-parent families, family dramas, natural disasters, terrorism and war.

Health maintenance organizations are providing health services to all the citizens of the country who pay for that a monthly premium. This premium is usually paid for partly by the employer and partly by them via their wages. Every citizen can choose the Health Services organization they prefer which are: Clalit, Maccabi, Meouhedet and Leoumit. Each organization offers the services of the basket of health (services and drugs agreed by the state and given via the Health Services), but they also offer additional services such as advice from other doctors, alternative medicine, sports medicine, counseling and others in various fields. The insured has to pay extra for any additional services.

By law, every citizen must take out a car insurance to cover the costs in case of accident. The insurance covers physical damage to the driver, passengers and pedestrians. The height of the monthly premiums depend on the type of vehicle and its condition (new or old, etc.), the driver’s age, his seniority and his past as a driver.

Basic insurances

Damage caused by water, fire, burglary, theft, professional faults by construction companies, architects and others, car accidents, motorcycle or other and more.

Every one of us has furniture, appliances, objects of all kinds in his home, some helpful, others less, some cheap and some very valuable. It is therefore important to take out an insurance for the contents of the house, in addition to homeowners insurance (if it does not include the contents), it should include all the property in the house and even some of objects outside to cover damages in cases of theft, burglary, flood, fire, earthquake and others. The height of the premiums depends primarily on the value of the contents of the house, but also of its location and whether it has alarms or other security methods.

The building insurance covers damage to the structure of the house such as plumbing, water damage, earthquakes, fires, and damage to the tubs, sinks, toilets, walls and so on .

This insurance has three options: combined insurance building and contents, building insurance and contents insurance. We talked above about the contents insurance and the building insurance, most people prefer to have a home insurance which includes both the above-mentioned, it is perhaps a little more expensive but much safer.

Designed for those who transport goods for removal or relocation. Always ask the carrier to present his contents insurance to make sure it includes not only damage to the truck itself but also to the content in it. When an accident occurs and the content takes damage if there is no insurance on it you will have to cover the damage and it can be very expensive.

Designed for luggage and equipment when traveling abroad, such as suitcases, laptops, watches, cameras, wallets and more. This is also called personal luggage insurance coverage and is usually part of the travel insurance that everyone takes out when traveling abroad. This insurance covers theft, damage and loss of personal equipment during the trip and during the stay abroad.

A business of any kind, store, shop, office, workshop, factory or other is a livelihood and the insurance protects its employees, property and equipment, the structure of the company from any risks as well as from personal and other accidents.

The Foresight Insurance is a kind of life and pension insurance for employees for when they reach retirement age. Premiums are paid monthly partly by the employee and partly by the employer via the monthly salary. In general and in most cases the employer also pays a premium in addition in case of working capacity loss, disability, and other serious illness, but it is not mandatory for him is his decision and choice to do so.

The mortgage insurance is linked to the mortgage itself, its purpose is to ensure that the bank is reimbursed for the mortgage in the event of a natural disaster or the death of the one who took it.

Designed for companies and banks and guarantees repayment in case of insolvency or risks such as export and others.

Designed for car owners, it may be a mandatory, damage or third parties insurance, but there are also the full insurance that combines all three of them, see below. The compulsory insurance only covers damage to the driver, passengers and pedestrians, as mentioned in the paragraph ‘Car insurance’ above. The damage insurance covers all types of damage from collisions, accidents, turn over as well as theft, fire and others. The third party insurance only covers damage to a third party, such as if the insured car bumps into the third party’s car, or in cases of damage caused to public property such as traffic lights and others.

Designed for car owners, this insurance includes compulsory, damage and third party insurance and thus protects the insured in case of physical and property damage due to accidents between vehicles, collisions against electricity poles, traffic lights, trees, parked cars, houses, etc., and in case of theft, fire and natural disasters such as hail, floods, lightning, snow, and so on as well as in case of damage to a third party.

Designed for car owners, it covers damage to the vehicle or possessions of another person, which is the third party in the case of an accident or other events.

Life insurance

Health Insurances

Medical insurance is designed to cover all health expenses incurred by illness or medical treatment. Most people are insured with one of the health organizations mentioned in the compulsory paragraph ‘Health’ above but many want additional insurance to ensure that all their health expenses will be covered. Private insurance offer various additional features such as care for teeth, hearing aids and others, they even have clauses covering cases of incapacity, disability and others as in the case of the Long Term Care insurance below.

The goal of long-term care insurance is to allow insured persons who can no longer care for themselves and need external help to carry out without problems most of their usual daily activities. Social Security takes care of a share of expenses, Health maintenance organizations of another share and private insurance completes the package. Premiums are paid monthly and their height depends on the age and health status of the insured. Most insurance companies have a time limit and therefore it is not only worthwhile but absolutely required to read thoroughly the contract before signing it.

Overseas Insurance includes several factors but the most important is the health and accident insurance abroad that guarantees coverage for illness, accident, hospitalization, evacuation to hospital , evacuation by air ambulance to Israel, and the cost of doctor visits, medicines and emergency dental care. Insurance can also cover the loss or theft of luggage, person search and rescue, extreme sports accidents and other emergencies. The cost of the premiums depends on the choice of the factors that the insured wishes to include in its insurance.