6 insurance questions regarding the current security situation
By Danny Newman, Branch Manager – Beit Shemesh, Goldfus Insurance
Over the past few weeks, the current situation has made people anxious, resulting in many questions about insurance coverage and potential concerns. These legitimate queries are important for everyone to hear, so a summary is included here.
I was driving in the West Bank and my car was damaged by a rock thrown at my car. Is it covered by my insurance?
While windshield replacement cover features in most comprehensive car insurance policies, in the event of a car being damaged by a rock as an act of hostility, the policy would not pay out. The Government has set a system by which damaged property as result of acts of terror or hostilities can be compensated for by Mas Rechush (Property Tax). Essentially, since the Mas Rechush pays out for the damages, the insurance policy will not cover that element.
My car was damaged by some over zealous youth in a demonstration against the current security situation. Is this covered?
Most people are not aware that the majority of comprehensive car insurance policies do not automatically cover riots, strikes and commotions. It is possible however, to extend ones comprehensive car insurance policy to cover these elements and ensure that the damage will be compensated for, according to the relevant terms and conditions.
Does my home insurance policy provide cover for terror activity?
Similar to car insurance, should one’s home and contents be damaged as a result of an act of terror, Mas Rechush (Property Tax) will pay for the damages up to an upper/capped limit. In many cases, the upper limit may not cover the full extent of the damage. As a result, one has the option to purchase additional cover through their insurance policy to make up the difference on what Mas Reschush does not cover.
It is important to note that Mas Rechush and the insurance policy will only pay out if the event is defined as an act of terror. If the property is damaged in an event defined as an act of war, the insurance policy does not provide cover.
If I am attacked and need emergency medical attention, will my health insurance policy cover me?
Emergency surgery is covered by your Kupah. Should you need further specialist treatment, the private policy can then be activated assuming one has the appropriate cover and clauses in place prior to the event. Whatever the case, the need for health insurance is the same, irrespective of the current security situation.
I have LTC (Long Term Care) insurance through my Kupat Cholim. Will this cover me for terror activity?
As it stands, some Kupat Cholim plans exclude cover for one becoming a long term care recipient as a result of hostilities. In addition, the length and amount of cover are limited across all Kupat Cholim policies. Policies purchased on a private basis do not exclude hostilities and allow for the policy to be customized according to your needs and concerns.
I heard that life insurance policies may exclude terror attacks. Is this true?
All Israel policies cover acts of terror and war. For those who have life insurance policies from outside of Israel, it is important to check whether they cover you if you live in Israel, and if this extends to acts of terror. It is recommended that you request confirmation in writing from your overseas insurer of this fact.
The need for insurance remains the same irrespective of the security situation in Israel, and all these questions are legitimate. As a result, it is important to sit with one’s own insurance professional in a calm manner, to gain a complete financial / insurance overview of plans that are worthwhile changing or purchasing in light of and irrespective of the current situation and its’ implications for both the immediate and long term future.
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