Home Sale Guarantees: A Unique Insurance Product in the Israeli Market – with Global Potential

A Solution Born from the Need to Protect Homebuyers

 The Israeli real estate market operates in a unique way: buyers of new apartments are often required to pay a significant portion of the purchase price before construction even begins. To protect their funds, local regulations require developers to provide buyers with a financial guarantee. Traditionally, this guarantee was issued through banks. In recent years, however, insurance companies have entered the picture, offering an alternative in the form of an insurance-based guarantee – a faster, more flexible, and sometimes more cost-effective solution. This shift has created a growing market, where insurers are playing a direct role in real estate projects, especially in the urban renewal sector. 

Insurtix – Complete Guarantee Management from A to Z

 Insurtix, our advanced insurance core platform, includes a dedicated module for end-to-end management of home sale guarantees: Guarantee issuance and document generation Payment tracking, milestone monitoring, and reporting Seamless interaction with developers, buyers, and insurers Full claims handling in compliance with regulatory requirements This module is fully integrated into the wider Insurtix insurance platform, giving insurers an operational, regulatory, and technological edge in this evolving market. 

What About Other Markets?

 While Israel enforces a mandatory personal guarantee for each buyer, other countries offer alternative protection mechanisms: Germany – Payment is tied to construction progress and strictly monitored France – Guarantees ensure project completion, but not individual refunds United Kingdom – Defect insurance (e.g., NHBC), but no financial guarantees USA – Buyer funds are typically held in escrow, not guaranteed by the developer Despite the differences, the underlying principle of protecting buyer funds is relevant everywhere. The Insurtix module was built with flexibility in mind, allowing for adaptation to different regulatory environments and market practices worldwide. 

Conclusion

 The home sale guarantee domain bridges the worlds of real estate and insurance, offering a significant growth opportunity for insurers in Israel. With a proven, dedicated module, Insurtix empowers insurers to manage this domain efficiently, expand within the local market – and tap into global opportunities.