Mortgage Insurance
(Bituach Mashkanta)
Purchasing a property with a mortgage in Israel requires you take out 2 types of insurance to provide you with protection: Structure Insurance and Life Insurance.
We will arrange a prompt quote, based on the exact bank requirements and then ensure that the plan is accepted by your bank.
Mortgage Insurance
The son of a client of ours purchased a home recently. He took out a mortgage through the bank and they referred him to their insurance company. (The bank requires both life and structure insurance). All good and well, until… the young man had a claim which involved water damage to his own apartment and to neighbor below. And now, surprise…the policy he has does not include Third Party Liability. While this is standard on most regular structure policies, apparently the issuers of mortgage policies are only concerned about the damage to “their” apartments and certainly not about the welfare of the client.
Therefore, the young man is now stuck with a large bill to cover his neighbor’s damage.
Insurance policy – Yes
Proper coverage – No
Our tip:
- Check if your mortgage policy has cover for Third Party liability. (If it’s through a bank-connected insurance agency… it probably doesn’t!)
- Switch to a private insurance agent who will ensure you are properly covered.