Coverage for war and hostilities damages in home insurance – what do you really deserve, and what extensions can you purchase?
Jun 22, 2025
By: Emil Agronov - Manager of the Premium Department at the Itzik Simon Agency
introduction
Many apartment owners in Israel discover in the moment of truth what they were not told in advance: The standard apartment insurance policy in Israel – structure and contents – does not cover damage caused as a result of war or hostilities, including missile strikes, gunfire, shrapnel, explosions, deliberate sabotage for security reasons, and more.
In these cases, the main entity authorized to compensate the victims is the state – through the Property Tax Authority and the Compensation Fund, which operates under the Property Tax Law and the Defense Regulations.
The team of experts at the Itzick Simon Agency – Premium Department
is at your disposal!
Review of existing coverage and guidance on possible insurance expansions –
contact the Premium Department Manager directly: Emil Agronov 📞 Mobile: 050-2028572
📧 Personal email: emil@simon-ins.co.il
What does property tax provide, and what are the limitations?
When an event is recognized as "war damage or hostilities" according to the state's definition, apartment owners are entitled to contact the Property Tax Authority and file a claim. In most cases, the state compensates for direct damage to the apartment or property, but the compensation is subject to conditions, documents, and sometimes appraisers' assessments.
Basic compensation ceilings for apartment contents (without permit insurance):
Single NIS 64,334 including basic items only
Couple 91,905 NIS
Couple with one child 109,000 NIS
Couple with two children 126,000 NIS
An additional 8,000 NIS for each additional child up to a maximum number of 7 children.
Additional limitations:
Compensation is given according to useful value, not market value.
Does not include jewelry, cash, expensive equipment, art objects and antiques.
Does not necessarily include alternative accommodation or loss of rent.
In a war "with a dog," the state may fund alternative housing, but compensation for investment apartments is questionable.The claim process may be delayed and end in partial compensation or a dismissal.
When an incident is recognized as “war damage or a hostile act” under the state’s definition, apartment owners are entitled to submit a claim to the Property Tax Department. In most cases, the state compensates for direct damage to the apartment or property, subject to conditions, supporting documents, and sometimes loss adjusters’ assessments.
Basic compensation limits for household contents, without optional insurance:
Single person: NIS 52,750, covering basic items only.
Married couple or single parent: NIS 85,517.
Couple with one child under 18: NIS 94,121.
Couple with two children under 18: NIS 102,725.
An additional NIS 8,604 for each child under 18.
View the table of household contents coverage limits available without paying a premium
Additional Limitations:
Compensation is based on value in use, rather than market value.
Jewellery, cash, expensive equipment, artwork, and antiques are excluded.
Coverage includes hotel accommodation for up to 14 days.
Coverage includes alternative accommodation for occupants of a damaged apartment, including tenants, provided their lease remains valid and they continue paying rent.
Loss of rental income for landlords is generally excluded, except in exceptional circumstances. During Operation Rising Lion, the state may fund alternative accommodation, but compensation for investment properties remains uncertain.
Those choosing to stay with relatives may receive monthly reimbursement of up to NIS 4,000.
The claims process is not necessarily straightforward and may be delayed or result in partial compensation or rejection.
Deadlines: Pay close attention to the short time limits for notifying the authorities of damage and submitting a compensation claim.
In addition to standard compensation, the state allows every resident to purchase PAS insurance – a paid extension intended for those who wish to secure higher compensation in the event of war damage.
Main points of the PA insurance:
Simple registration on the Tax Authority website – in minutes.
Premium: 0.3% of the additional value.
Maximum ceiling: 1,012,991 NIS.
The insurance is valid until December 31st of each year.
Excluding jewelry, art objects, antiques and cash.
Compensation is provided according to the declared value, subject to verification by the Tax Authority.
To register and extend property tax insurance:
https://www.gov.il/he/service/optional_insurance_war_damages_compensation
Contents Insurance Authority – to expand the government ceiling
In addition to standard compensation, the state allows every resident to purchase optional insurance, a paid extension for those seeking higher compensation for war damage.
Key Features:
Simple registration on the Tax Authority’s website, taking just a few minutes.
Premium: 0.3%, calculated under the regulations on the additional insured value of household contents.
Maximum limit: NIS 1,012,991.
Coverage remains valid until 31 December of each year. The full annual premium is payable regardless of when during the year the insurance is purchased. Once purchased, it cannot be cancelled for a refund.
Jewellery, artwork, antiques, and cash are excluded.
Compensation is based on the declared value, subject to verification by the Tax Authority.
To Register and Extend Coverage Through the Property Tax Department:
Private insurance extensions – completing coverage through insurance companies
The standard policy does not include coverage for terror or war damages. These damages are covered by the Property Tax Authority – but compensation is limited and sometimes only partial.
Therefore, it is possible to purchase a dedicated extension from certain insurance companies, which includes coverage for structural and contents damage due to war or hostile action, as well as associated expenses – as a supplement only to the compensation that the Property Tax Authority provides.Examples of extensions with additional premium:
Coverage for apartment structure due to war damage or hostile action, including blast, shrapnel or sabotage - beyond the Property Tax Authority compensation.
- Coverage for apartment contents, including high-value items or items not included in state compensation beyond the Property Tax Authority compensation.
- Coverage for associated expenses – alternative accommodation, loss of rental income, emergency evacuation or apartment cleaning.
- Faster commercial terms – in special cases, compensation can be received even before completing the review process with the Property Tax Authority.
The standard policy does not cover damage caused by terrorism or war. Such damage is covered by the Property Tax Department, but compensation is limited and sometimes only partial.
Certain insurers therefore offer a dedicated extension covering damage to the building and its contents caused by war or hostile acts, together with related expenses, solely as a supplement to the compensation provided by the Property Tax Department.
Examples of extensions available for an additional premium include:
Coverage for damage to the apartment’s structure caused by war or hostile acts, including blast pressure, shrapnel, or sabotage, beyond the compensation provided by the Property Tax Department.
Coverage for household contents, including high-value items or items excluded from state compensation, beyond the compensation provided by the Property Tax Department.
Coverage for related expenses, such as alternative accommodation, loss of rental income, emergency evacuation, or cleaning the apartment.
Faster settlement arrangements: in exceptional cases, compensation may be available before the Property Tax Department completes its assessment.
There is no double compensation for the same damage component. If compensation was received from the state, no double benefit will be paid by the insurance company, and vice versa.
However, when there are gaps in coverage, or when the state does not recognize a particular item, insurance extensions can be activated for the purpose of supplementation.
And what about double compensation?
Even if the apartment is completely destroyed, the mortgage debt to the bank is not canceled.
Currently, it is possible to request a temporary three-month deferral of mortgage repayment, without interest or fees, in accordance with the Bank of Israel's outline - but after that, repayment resumes.
The banks continue to hold a lien on the land, and the state is obligated to rehabilitate the property or finance alternative housing for tenants or owners.
It is important to know: Even when the apartment is gone, the obligation to the bank remains intact.
You must verify with the bank the terms of the postponement, and examine the options for future distribution of the frozen payments.
What about the mortgage when there is no longer a house?
experience
In conclusion
Anyone who wishes to ensure full protection for their apartment and property during a time when the security situation is sensitive and complex must understand the limitations of the compensation provided by the state, and consider available extensions:
Authority insurance through the Tax Authority – to increase the ceiling for contents.
Expanding the insurance policy – for broader, more available and faster protection.
This is a responsible move that ensures not only increased compensation, but also true peace of mind at the moment of truth.
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