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טילים על אתר בנייה.webp

Damage to construction sites due to war and terrorism

Rockets which are not intercepted and pieces of shrapnel are causing damage to buildings and structures at construction sites. In the event that a construction site is damaged by a rocket attack, the contractor / developer should know that they will not be compensated by the insurance company, in view of the exclusion of war and terrorism, and that they have to seek compensation from the government under the Property Tax and Compensation Fund which covers war and terrorism damage.

Firstly, the government has recently launched an on-line application form to streamline claims for property damage due to the war, and has published a guide to making a claim containing other useful information.


In the event of damage at a construction site due to a rocket attack, you should make an immediate claim with the Property Tax and Compensation Fund. A loss adjuster from the fund will visit the site, assess the damage and prepare a report of the compensation payable.

Compensation for stock and equipment is paid according to its market value on the date of the event, subject to proof of the cost. The claimant will be required to supply an inventory of stock and equipment and also supply relevant documents, financial statements, income tax certificates, accounting records and the like. The Property Tax and Compensation Fund website states: “Do not remove equipment, stock, waste or any other item from the site without making prior arrangements with a loss adjuster from the Property Tax and Compensation Fund”.

N.B.: The construction site owner is entitled to bring a report from a loss assessor they appoint, and we recommend that you do so. A private loss assessor, representing the interests of the claimant, can help you maximise the compensation you are due from the fund.

Property Tax and Compensation Fund and construction sites

According to data from the Property Tax and Compensation Fund published on 15th October, some 6,400 buildings and structures have been damaged around Israel since 7th October. There are around 80 teams of government loss adjusters spread around the country, 20 in the greater Tel Aviv area and the rest in the south. Around 2,100 buildings have been damaged in the Tel Aviv area.

Is the contractor / developer entitled to compensation for indirect damages from the Property Tax and Compensation Fund?

According to Israeli law, compensation may be payable for indirect damages if the claimant proves a causal relation between the damage they have sustained and the act of war. The Property Tax regulations albeit limit such an entitlement to “border settlements”, even though the government will sometimes extend the entitlement to other locations. At the present time it appears likely that the government will be compensating businesses for loss of income due to the war.

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