Government Compensation for Damages: Operation “Am KeLavi” – Legal Updates

Following “Operation Am KeLavi”, significant damage has been caused to private and commercial properties across various regions of the country. In accordance with the Property Tax and Compensation Fund Law, 1961, individuals affected by direct damages may be eligible to receive compensation from the Israel Tax Authority, subject to the limitations set forth in the law and its regulations.

In the case of residential apartments, full compensation will be granted for structural damage, while partial compensation is available for damage to household contents (see details in the following link), in accordance with the maximum amounts established by law. Please note that with regard to household contents, it is possible to purchase extended insurance coverage in advance through the Tax Authority. This extended coverage entitles insured parties to higher compensation than the amount set forth in the regulations. (To purchase the insurance, please click here.)

Businesses that suffered damage are entitled to full compensation for direct damages to inventory and business equipment, provided that you can prove to the Tax Authority that the affected contents were in your ownership (see the list of required documents to attach to the claim form at the following link). However, businesses located outside peripheral communities are currently not eligible for compensation for indirect damages resulting specifically from property damage. These days, discussions are underway to advance legislation that will apply to all businesses and will provide compensation for indirect damages, based on the eligible expenses model that was applied at the beginning of the “Iron Swords” war.(Click here to view the Ministry of Finance presentation.)Once the legislation is finalized, we will publish a separate update.

In cases where a property is rented, in general, the entitlement to compensation for damage caused to the structure belongs to the owner, while the entitlement for damage to contents — whether business or residential — belongs to the tenant. It should be noted that yesterday, the Tax Authority published a Guide for Evacuees (Click here to access the guide), which summarizes all the updated information regarding the eligibility of residents (tenants or property owners) to receive alternative housing in cases where the property they lived in is uninhabitable due to damage caused by Operation Am KeLavi. (See also a link to the FAQ section on the Tax Authority’s website.) In the coming days, the guide is expected to be updated with a link to the list of properties designated for long-term evacuation. Please note: According to the guide, eligibility for hotel accommodation or rent compensation remains valid as long as the tenant continues to pay rent to the property owner for the evacuated property.

In order to exercise your right to compensation for direct damage, you must complete and submit a claim form to the Tax Authority (via the following link) within 14 days of the date the damage occurred, and submit a full compensation claim within three months from the same date.

You may choose between two available claim submission tracks:

1. The Standard Track
   Under this track, once the form is submitted, a representative will contact you to coordinate a damage assessment with an appraiser appointed by the Compensation Fund. Compensation payments will be issued only after the appraiser’s evaluation is completed. For minor to moderate damages, payment is typically made within approximately one month; for more complex cases, the process may take longer.
   Please note: Do not begin repairs or remove any equipment, inventory, debris, or foreign objects without prior coordination with the Compensation Fund’s appraiser. However, shattered glass may be cleared away without prior approval.

2. The Fast-Track Option

Under this track, claim may be approved within 7 days of submission, without waiting for an appraiser’s visit. Under this track, claims may be submitted for damage to structures, household contents, inventory, and business equipment, for a total amount not exceeding NIS 30,000. This applies to both private individuals and businesses who meet the legal definition of a “damaged party” under the Property Tax Law (including property owners, tenants, or any party who can prove they bear the cost of restoring the damaged property or contents).

Please note: Submitting a claim under the fast-track replaces the option to submit a claim under the standard track and is limited to one claim per event and per household or business.

Compensation payments are contingent upon submitting an official invoice no later than 30 days from the date of payment.

You may also submit the claim form via the Israel Tax Authority’s telephone support center by calling *4954 (Sunday–Thursday, between 8:15 AM and 5:45 PM). In addition, representatives are available to assist you while completing the form online.

After submitting the form, it is recommended to save your claim number for future reference and follow-up.

Please note that the guidelines of the Tax Authority are continuously being updated and may change according to the evolving situation. We are at your service for any questions or clarifications, and will be happy to assist you in completing the claim form for the Tax Authority.

Wishing you safer and quieter days ahead.