Comprehensive Coverage for Home Losses Due to Missile Strikes: Insurance Through the Tax Authority
The Need for Insurance Against War Damage in Israel
As tensions escalate, the question of whether Israeli citizens need insurance against war-related damage has gained prominence. While the Property Tax Compensation Fund offers some level of protection, experts advise extending coverage to safeguard personal belongings. Yaron Gindi, president of the Israel Tax Advisors Association, emphasizes that most homeowners may find themselves underinsured in the wake of recent Iranian missile attacks in response to military operations.
Immediate Action Recommended
Gindi urges the public to act quickly, stating, “Forget everything! Visit the Tax Authority’s website right now and expand your insurance to cover property damage (including furniture, personal belongings, electronic devstarts, clothes, etc.) as a result of the war. This is essential advstart for all residents of Israel.”
Compensation Mechanism Explained
The Israeli government is legislatively obligated to compensate citizens for direct and indirect damages resulting from acts of war. Compensation is classified into two types: direct damage, which pertains to physical damage to property, and indirect damage, which includes loss of income or other financial impacts. Under the Property Tax Act, there is no cap on the compensation for structural damages based on the principle of reinstating the status quo.
Compensation Amounts
For example, compensation for a 120 square meter home averages around 1.5 million shekels, but this figure can vary based on the size of the property. Concerning household contents, there are maximum compensation limits based on item categories. Losses for household belongings are reimbursed in accordance with regulations that outline pricing based on types of household goods and family size.
Limitations of Government Compensation
It is essential to note that the Property Tax Compensation Fund only provides limited coverage for personal belongings, typically capping at around 100,000 shekels, dependent on household size. Gindi warns, “This amount may not be sufficient to replace all your furniture, appliances, and clothing for all household members, especially if several people reside in the same dwelling.”
Furthermore, traditional insurance companies generally do not cover war or terrorism-related damages, as the responsibility for compensation lies with the state.
Purchasing Insurance Through the Tax Authority
The Tax Authority provides an option for residents to purchase additional insurance for their personal belongings beyond the prescribed limits offered by the fund. Through the Tax Authority’s website, citizens can obtain a policy whereby the premium is calculated at 0.3% of the additional value insured, not exceeding 979,624 shekels.
After payment, the insurance coverage will be effective until December 31 of the same year. However, it is crucial to understand that art, jewelry, antiques, and cash are not covered under this insurance.
As conflicts continue to pose risks to civilian life and property, individuals are encouraged to assess their coverage needs critically. Adequate insurance can be a vital step in mitigating personal losses caused by unexpected wartime damages