Earthquake damage is included by default in Israel’s standard home-insurance policy unless the insured waives that cover and the insurer records the waiver in the policy schedule. That does not mean every home is insured, or that a policy will pay the market price of another apartment. Check which chapters you bought, the earthquake election, each insured sum, the deductible and any extra condominium cover. Regulation 5A permits a waiver for the whole policy or separately for the building or contents.
For an owner, a renter and a mortgage borrower, those checks lead to different questions. Building insurance (ביטוח מבנה, bituach mivne), contents insurance (ביטוח תכולה, bituach techula) and an additional sum for a condominium are not interchangeable. The standard-policy regulations set the starting terms; read them alongside your own current schedule and any more favourable extensions.
Which part of the loss does each cover address?
| Cover | What it addresses | What not to assume |
|---|---|---|
| Building | Damage to the insured dwelling and its defined permanent installations, attachments and share of common property | The sum is not automatically the apartment’s full market purchase price |
| Contents | Insured belongings such as furniture and movable appliances, subject to definitions and limits | A landlord’s building policy automatically covers the tenant’s belongings |
| Additional condominium sum | A separately scheduled extra payment when the defined severe-earthquake trigger is met | It exists merely because the apartment is in a shared building |
| Mortgage-related building policy | The cover actually bought to satisfy the lender’s conditions | Bank acceptance proves every household loss or replacement-home cost is covered |
The standard definition of the dwelling includes permanent plumbing, heating and air-conditioning systems, solar-water equipment and other fixed attachments. In a condominium it also includes the insured’s share of common property and specific attachments such as storage. A loose household appliance belongs to a different category from a permanently installed building system. Ask the insurer to resolve any uncertain classification before choosing the sums insured.
Rebuilding cost is not the same as buying another apartment
A structure policy is normally arranged around the cost of restoring the building, not a promise to buy an equivalent apartment at its market price, which also reflects land and location. The standard policy compensates the insured loss within the applicable sum and valuation rules. It also makes provision for specified professional fees, debris removal and reconnection costs, subject to the policy conditions. Describing it as paying only for bricks would therefore be incomplete.
In a shared building, rebuilding one flat may depend on repairing foundations, floors and common parts and on funding by other owners. The State Comptroller’s 2018 earthquake-preparedness report identified that reconstruction problem. It is background explaining why extra cover matters, not evidence that a particular building or neighbour is uninsured today. Ask the building committee what common-property insurance actually exists.
The additional sum for a condominium
The standard policy’s additional-sum chapter applies only when it appears in the schedule. For a dwelling owned or held on a qualifying long lease by the insured, the earthquake damage must be at least 70% of the dwelling sum insured, determined by the specified qualified appraiser or licensed engineer, or the earthquake damage must have resulted in a demolition order for the condominium. The scheduled additional sum must be at least 100% of the dwelling sum insured.
These are the triggers and minimum additional sum in sections 3C and 3D, not a guarantee of unlimited market-value replacement. Compare the total protection with the cost of another suitable home, and check the amount actually purchased. Do not add an unsupported requirement that every claimant must first prove an uninsured neighbour prevented reconstruction: that is a practical reason to consider the cover, not how the standard trigger is written.
Sources: standard policy, additional condominium sum and the 2015 Official Gazette amendment, pages 782-783. The insurer’s own explanation of this product is also available from Clal; the statutory wording and the actual policy take precedence over a shortened marketing explanation.
Check the deductible in shekels, not just percent
The regulations require the earthquake premium to be presented separately with approved deductible options. Do not assume one nationwide deductible applies to every policy. Read whether your percentage is based on the insured sum, and distinguish the building and contents chapters.
Illustration only: if a policy insures a building for NIS 1,000,000 and the agreed earthquake deductible is 10% of that sum, the deductible is NIS 100,000. That is arithmetic on assumed terms, not a current quotation or a statement that all policies use 10%. Compare quotations using the same insured property, sums, extensions and deductible.
For deductible purposes, the standard wording treats earthquakes within 72 hours following the first earthquake as one event. It includes a tsunami caused by an earthquake in that peril. That is not cover for every cause of building collapse: a defect, wear or another cause must be assessed under the policy’s actual insured events.
Does mortgage insurance solve the problem?
The Bank of Israel’s mortgage guidance explains that banks commonly require insurance to protect repayment and the borrower, subject to the policy. A lender’s requirements do not replace the owner’s review of the building sum, contents, deductible or additional condominium protection. Mortgage life insurance is also a different cover from damage to the structure.
Ask for the full schedule rather than a certificate saying only that insurance exists. Confirm the insured address, the borrower and other insured interests, the bank’s beneficiary endorsement, earthquake cover and the cost of extending protection. Buying without a mortgage does not remove the need to consider the same property risks.
Temporary rent and lost rental income
Under section 3A(c)(3), when a licensed engineer determines that the insured dwelling is unfit for habitation after an insured event, the standard building chapter provides for lost rental income or the insured family’s alternative accommodation rent. Its standard limit is the lower of 12 months and 15% of the dwelling sum insured. Alternative-accommodation expenses must be reasonably proved to have been incurred. Check your actual policy for more favourable terms.
Preserve the engineering determination, the original tenancy documents and receipts for alternative housing. Do not equate a landlord’s insured rental-income loss with an automatic payment to the tenant, or treat insurance as a final answer to whether rent remains due under a particular lease. Our renter insurance guide separates those interests.
Three different clocks after a loss
| Stage | Standard rule | Action |
|---|---|---|
| Notify the insurer | Notify promptly after learning of the insured event and supply the required information | Keep dated notice, photos and the insurer’s claim reference |
| Replacement-value reinstatement | Start within a reasonable time; ordinarily finish dwelling reinstatement within 12 months and contents within 90 days | Coordinate an extension with the insurer when completion is impossible for reasons outside your control |
| Court limitation for a property-insurance claim | The ordinary statutory period is 3 years after the insured event | Obtain legal advice before the deadline; a claim submitted to the insurer does not stop this clock |
The reinstatement provision concerns replacement-value compensation (ערך כינון, erech kinun). The standard wording provides for indemnity-value compensation where the property is not rebuilt, repaired or replaced. Do not turn the rebuilding period into a claim that all compensation disappears automatically after one year. Section 13(g) expressly addresses extensions where delay is beyond the insured’s control.
Sections 31 and 31A of the Insurance Contract Law distinguish the litigation deadline from negotiations with an insurer. Specific legal exceptions or an effective extension can affect a case. Do not assume a phone call, an open claim or ongoing negotiations preserve a right to sue.
A document check before purchase or renewal
- Check the election. Is earthquake cover retained in each relevant chapter, or has a waiver been recorded?
- Separate the sums. Write down the building, contents and additional condominium amounts independently.
- Calculate the deductible. Convert the selected percentage and calculation basis into a shekel exposure.
- Check the building collectively. Request the common-property policy and clarify how private and shared cover interact.
- Read temporary-housing terms. Identify the insured person, evidence requirements, limits and duration.
- Keep the current documents. Store the schedule, wording, endorsements and renewal records somewhere accessible if the apartment cannot be entered.
Do not budget on an assumed future public compensation scheme in place of an actual insurance contract. This guide does not determine any entitlement under a future relief programme. Insurance also does not replace a property-specific building inspection.
Sources and scope
Reviewed on 1 November 2026 against the standard home-policy regulations, their Official Gazette amendment, Insurance Contract Law sections 31 and 31A, Bank of Israel guidance and the explicitly dated State Comptroller report linked above. The legal texts are reproduced in the Open Law archive; policy-specific advice requires your current documents. This is general information, not legal or tax advice; confirm with a licensed professional and a licensed insurance adviser.
When evaluating an apartment through Semerenko Group, include its building records and insurance questions in your buyer-representation brief, alongside the legal and technical checks.
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