Shimon Cohen – Insurance

You are Entering the Insurance Danger Zone

Egert Cohen

The following are areas where you may have insurance— but it’s not enough.

Case #1

The son of a client of ours purchased a home recently. He took out a mortgage through the bank and they referred him to their insurance company. (The bank requires both life and
structure insurance). All good and well, until… the young man had a claim which involved water damage to his own apartment and to neighbor below. And now, surprise…the policy he has does not include Third Party Liability. While this is standard on most regular structure policies, apparently the issuers of mortgage policies are only concerned about the damage to “their” apartments and certainly not about the welfare of the client.

Therefore, the young man is now stuck with a large bill to cover his neighbor’s damage.

Insurance policy – Yes

Proper coverage – No

Our tip:

1) Check if your mortgage policy has cover for Third Party damage. (If it’s through a bank-connected insurance agency… it probably doesn’t!)

2) Switch to a private insurance agent who will ensure you are properly covered.

Case # 2

Our client relied on his credit card Travel Insurance for his trip to the U.S.A.

Why? It’s free, of course!

Unfortunately, he was hospitalized for five days for a suspected heart attack. He came back and submitted the bill to the insurers. Now the small print jumped out – there is a ceiling of $2,000 per day in case of hospitalization. In the top N.Y. hospital where he was confined, the daily cost, including a battery of tests, was much, much more.

Result: He had to pay thousands of dollars out of pocket.

Our tip:

1) Don’t rely on the freebie!

2) Call Egert & Cohen for your Travel insurance (we provide cover for pre-existing conditions, pregnancy up to week 36 and most important — we’ll deal with the claims!).

Case #3

You live in an apartment block with another 15 apartments. Let’s say that you and another 70% of the tenants have Structure insurance including cover for earthquake and natural disasters.
What happens if, G-d forbid, there is an earthquake and the building is destroyed?

What insurance do most people have? At present, the average premium is NIS 6,000 per sq. meter. In other words, a 100 sq. meter apartment in Rechavia is insured for NIS 600,000. Try and buy a new apartment in Rechavia for that!

Our tip:

You can increase what’s called the “land-value” of your apartment for up to five times the original amount – so, the same apartment is now covered for NIS 3,000,000. With that, you can easily think about a new apartment!

BUT! This increased land value only applies to damage caused by earthquake. Other damage (such as a fire destroying the whole building) is subject to the original amount (in our example NIS 600,000).

A gezunte winter!

Tel. 02-623-2546 Cel. 050-548-2192

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