What Happens If a Missile Hits My Building?

During the recent war, thousands of Israeli homes were damaged by missiles and rockets. The common questions are the same: who bears the cost if a building is destroyed, does insurance cover it, and what happens to the residents? Israel has a unique government compensation system designed specifically for war damage. Here is how it works.

Who pays for missile damage?

Unlike most countries, the Israeli government compensates property damage caused by war or terrorism. The compensation is sourced from the Property Tax and Compensation Fund (Mas Rechush), operated by the Israel Tax Authority. If your property is damaged by missiles, rockets, drones, or terror attacks, you may be eligible for compensation from the state. This applies to homeowners, investors, and foreign owners alike.

What happens immediately after a strike?

After a missile strike, several authorities respond quickly: Home Front Command, fire and rescue teams, municipal authorities, and engineers from the Compensation Fund. They secure the area, rescue residents if necessary, inspect the building, and determine whether it is safe to live in. If the building is unsafe, residents are evacuated immediately.

Temporary housing for residents

If apartments become uninhabitable, the government provides temporary solutions. Residents may receive hotel accommodation, temporary rental housing, or emergency financial assistance. In recent attacks, hundreds of families were temporarily housed in hotels funded by the government. Housing assistance continues until the home is repaired or rebuilt.

Filing the damage claim

Property owners must file a claim with the Israel Tax Authority Compensation Fund. The claim can be submitted through an online form, a hotline, or with assistance from the municipality. Government inspectors then visit the property to evaluate the damage. This process usually begins within days of the attack.

How damage is assessed

Inspectors evaluate both structural and interior damage. Structural damage may include walls and ceilings, balconies, plumbing and electrical systems, and windows and structural components. Interior damage may include flooring, kitchen cabinets, and doors and fixtures. Even blast damage from a nearby strike may qualify for compensation.

What compensation covers

The government generally covers structural repairs to the building, reconstruction if the building is destroyed, and infrastructure repairs inside the apartment. If damage is severe, the building may be fully renovated or demolished and rebuilt. Reconstruction costs can reach tens of millions of shekels for large buildings.

What if you do not have insurance?

Many people assume they need private insurance to cover missile damage. In Israel, structural damage from war is covered by the government even if you do not have insurance. However, private insurance is still useful because it may cover furniture, electronics, personal belongings, and additional living expenses. These items often have limited compensation from the government.

Damage from the current war

The recent conflicts involving Iran caused record property damage in Israel. Reported estimates include tens of thousands of damage claims, thousands of apartments damaged, several buildings completely destroyed, and billions of shekels in compensation claims. Ballistic missiles carry much larger warheads, which is why some buildings were severely damaged.

This content is for informational purposes only and is based on publicly available information about Israel's compensation system for war-related property damage. Compensation eligibility, amounts, and procedures may vary depending on individual circumstances and government policy. This material does not constitute legal, financial, or insurance advice. Property owners should consult relevant professionals or authorities for specific guidance. Contact: office@gabairealestate.com.