Question and Answer – Does insurance for TAMA work also include home insurance and why is insurance for the existing structure not the same?
Nov 26, 2021
Question:
We own an apartment in Holon that is located in a building where work is being carried out according to TAMA 38. According to the tenants' contract, the developer was also supposed to take out building and third-party insurance. In the policy drawn up by the developer, the insured also includes "the apartment owners and tenants" (not by name). Does each of the property owners also have apartment, building and third-party insurance?
Question:
We own an apartment in Holon that is located in a building where work is being carried out according to TAMA 38. According to the tenants' contract, the developer was also supposed to take out building and third-party insurance. In the policy drawn up by the developer, the insured also includes "the apartment owners and tenants" (not by name). Does each of the property owners also have apartment, building and third-party insurance?
Answer:
The answer is no, and here is the explanation. Developers in TAMA 38 projects purchase a construction insurance policy that is a "contractor work insurance policy" and not a "home insurance policy." These are two insurance products that do not overlap and are in fact very different from each other.
Contractor work insurance for the TAMA 38 reinforcement project may include insurance for the existing structure if purchased correctly, but it should be remembered that this is insurance designed to cover damage caused to the apartments or the structure as a result of the work , as well as, of course, insurance against third-party claims for damages caused by the construction work . If it is drawn up correctly, the policy is even extended to cover the tenants against claims due to the work.
Home insurance, on the other hand, is a completely different product . It is private insurance that covers many issues unrelated to construction, such as personal injury to household workers (cleaning worker, nanny, gardener, etc.), third-party insurance for family members (such as due to owning a pet), burglary insurance, theft insurance, regular contents insurance, and more. The insurance included in the urban renewal project policy is not a substitute for home insurance.
Answer:
The answer is no, and here is the explanation. Developers in TAMA 38 projects purchase a construction insurance policy that is a "contractor work insurance policy" and not a "home insurance policy." These are two insurance products that do not overlap and are in fact very different from each other.
Contractor work insurance for the TAMA 38 reinforcement project may include insurance for the existing structure if purchased correctly, but it should be remembered that this is insurance designed to cover damage caused to the apartments or the structure as a result of the work , as well as, of course, insurance against third-party claims for damages caused by the construction work . If it is drawn up correctly, the policy is even extended to cover the tenants against claims due to the work.
Home insurance, on the other hand, is a completely different product . It is private insurance that covers many issues unrelated to construction, such as personal injury to household workers (cleaning worker, nanny, gardener, etc.), third-party insurance for family members (such as due to owning a pet), burglary insurance, theft insurance, regular contents insurance, and more. The insurance included in the urban renewal project policy is not a substitute for home insurance.
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