1. Get as many offers as you can. In Israel there are more than ten
insurance companies, which issue
mortgage insurance policies.
Even if you got one or two offers, it''s still possible you didn''t get the lowest offer yet. Don''t hesitate, get more offers. Remember: getting offers is free!
2. The
insurance policy should cover all the possible damages to your building: Earth quakes, fire, weather, plumbing and electricity, burglary and more. And insurance policy without and water damages insurance, for example, is only partial, so even if this insurance policy is cheap, the consequences for taking that policy can be very expensive.
3. It is recommended to have a
personal connection with the person who sold you the policy, so you should buy your policy at an insurance company. In an insurance company, you''ll always have a personal contact who know you, a person who can take the responsibility of taking care of you. That way, when calling the insurance company, you won''t have to talk with a different person each time.
4. The insurance policy should also include third party insurance. Third party is anyone besides you – guests, neighbors, the stairwell, etc. If any damage occur to the third party because of you apartment (for example, a fire in your house which spread to the neighbors, or a guest who broke his leg in you apartment), they may sue you. Third party insurance can save you headaches and money. Demand insurance for a high amount of money, 500 thousand NIS, for example. If you company demands a higher price for the third party insurance, go to another company, the third party insurance should be included in the default policy!
5. If you''re done paying some of the mortgage or all of it (congratulations!), tell your insurance company, and they should lower the insurance price. There''s now use for paying insurance on mortgage you already paid. If you got your policy from an insurance company, don''t worry, your personal contact at the company will make the necessary arrangements when you call him.
6. Even if you found a company whose price is only 50 NIS lower than your present company, you should take it. You can save a lot of money if you''re paying mortgage for 20 years.
Good luck!