In a clear and unsettling sign of the times, one Israeli insurer has begun offering private contents insurance for damage sustained as a result of war or terrorist attacks.
Provided by Phoenix, the policy covers a range of potential scenarios - but Shlomo Miller, the firm’s senior vice president for general insurance, said rockets and missiles pose the biggest threats.
“The problem that this policy offers a solution for is a missile attack,” Miller told local news site, Haaretz.
The policy is the first of its kind for the country as, until now, the state bore the financial responsibility of damage with private insurers insisting the risk was too large. However, Phoenix has become the first insurer in the region to secure reinsurance for damage as a result of war, making it possible to offer the policy.
“We’re offering a solution that hasn’t existed until now, and we’re the only ones in Israel that are giving this coverage,” Miller said.
The Israeli government provides basic coverage for damage, offering payments of 88,000 shekels (AU$32,145) per couple – Phoenix’s cover only kicks in once the government has paid out the minimum guaranteed compensation.
Miller also suggested that many residents currently underestimate their risk in relation to damage sustained as a result of war.
“People are insured against earthquakes, but actually there has been more damage from missiles than from earthquakes,” he said.
During the 2014 Gaza war, Hamas fired nearly 5,000 rockets and mortar shells at Israel with 4,572 compensation claims filed for damage to buildings and vehicles – just a year later, the tax authority had paid out more than $31 million in compensation.
