Third party insurance in an apartment:

In the event of a person injuring another person-3rd party-or their property- excluding a road accident- anywhere in Israel, an insurance policy for structure or possessions  automatically includes cover for  at least 1000000sh. In such a situation, negligence has to be proven.

Third-party insurance will cover expenses such as medical costs, rehabilitation, and even disability percentages in the case of injury. It is important to note that individuals employed within the home, such as babysitters or cleaners, are not typically included in this coverage, and a separate policy may be needed for them. Also, if a family member sues the insured, the policy will not provide coverage.

While third-party claims are less common than claims for other damages, in situations involving injury or death, the compensation amounts can be very high. e.

A good piece of advice is, of course, to avoid situations that may lead to damage in the first place – identifying potential issues that could cause harm and reporting them to the landlord or as a property owner take prompt action to deal with them. During regular activities in the property, it is essential not to leave electrical devices on unnecessarily 

Third-party damages can also extend to situations where the cause is within the apartment, but the damage is environmental. For example, flooding or a fire affecting neighboring apartments.

In one case we handled at the agency, a tenant left a balcony door open, and a potted plant fell directly onto a luxury car down below belonging to one of the neighbors. Due to the impact, significant damage was caused to the vehicle. Fortunately, the tenant had full coverage for the damage through the third-party liability section of her apartment insurance policy.

The regulator has expanded third-party coverage even in cases where a person is injured as a result of the insured person’s property that caused the damage. For example, if a pet owned by the insured person causes damage to a third party, or negligence on the part of the insured leads to third-party damage – in such cases, it is advisable to check with the insurance agent if there is coverage through the apartment insurance policy.

Tenant and landlord – who should purchase insurance?

The Fair Rent Law of 2017 stipulates that the responsibility for purchasing building and third-party insurance lies with the landlord. It is essential for tenants to be aware of this, as some landlords may demand that tenants pay for third-party insurance or even building insurance.

Even though the landlord is responsible for purchasing building and third-party insurance for himself, the tenant should ensure he has his own 3rd party cover. When damage occurs, people seek to assign blame, and the tenant is exposed to potential liability. Additionally, even if third-party and building insurance are purchased by the landlord, the tenant should confirm that the insurance company cannot later sue them for damages paid to the landlord. In cases where the tenant is responsible for damage– for example, if a fire is caused due to the tenant leaving an electrical device on. In such situations, the tenant cannot escape liability for the damage and is exposed to a lawsuit.

Therefore, it is crucial for both insurance policies – building insurance and third-party insurance to include a waiver of subrogation clause. The clause ensures that the insurance company cannot come back and sue the tenant for damages.