Building insurance is important for several reasons, the insurance provides financial security and offers peace of mind and here are some main reasons why building (apartment) insurance is very important:
– Protection against your investment – It is likely that the purchase of your property is one of the largest investments you will ever make.
Building insurance helps protect your property by providing coverage for damage or loss caused by various perils such as fire, collapse and various natural disasters.
– Mortgage requirement – one of the requirements of the mortgage lenders in Israel is to have building insurance, the lenders want to ensure that their investment (the mortgage loan) will be protected in case of unexpected events that may happen in your property.
– Liability coverage – The building insurance also includes liability coverage that can protect you from damages caused to a third party, for example if someone damages your property you are exposed to a lawsuit, this section also covers medical expenses, legal expenses and sometimes settlement costs.
– Alternative housing expense coverage – If your property becomes uninhabitable due to an event covered under the policy, the building insurance may cover part of the temporary housing costs.
Knowing that you have insurance can provide you with peace of mind knowing that you have a safety net to help you recover from accidental and unexpected events.
