Why apartment insurance is essential

• Published date: 23 April 2024
• Author: YARON HOLLANDER
• Publication title: Jerusalem Post, The: Web Edition Articles (Israel)

There's no denying that for most Israelis, an apartment is the most valuable asset they'll acquire in their lifetime. Besides the economic aspect, an apartment is also a home, our safest environment. Therefore, there's great importance in securing it in a way that provides suitable protection and ensures optimal defense according to each individual's needs. Apartment insurance typically includes two separate policies that can also be sold together: building insurance and content insurance. It's essential to explore the various options before purchasing the right insurance for you

Apartment Insurance - General and Principled Explanation

Why do you even need apartment insurance? Because your most valuable asset can be damaged for various reasons, such as earthquakes, fire, water damage from external sources, damage caused by bursting, leaks, and other insurance events that can cause significant damage to the apartment or house. Generally, apartment insurance distinguishes between the structure of the apartment and its contents. Accordingly, the structure of the apartment, i.e., the walls, floors, infrastructure systems, and the like, are insured separately from the contents of the apartment, which refers to furniture, electrical appliances, movable equipment, and the like.

Building Insurance and Content Insurance - Features and Differences

The purpose of insurance is to restore the property to its pre-incident state. Under building insurance, most policies cover or finance the repair of the apartment. Building coverage also includes expenses related to the reconstruction of the apartment, such as expenses for surveying and architecture services, rent expenses for alternative housing when the property is uninhabitable, and it also includes the relative construction cost of the property owner in common areas (stairwell, elevator, etc.) in case the entire building is damaged. It's important to note that if the property is mortgaged to a bank, the bank usually requires the property owners to insure it with building insurance.

Content insurance is intended to cover damages caused to property inside the apartment. It's important to note that valuable items such as jewelry, artworks, and more can be insured under a dedicated content insurance framework. When purchasing insurance, it is necessary to declare the value of the items within the content and...