Is property insurance mandatory for all Israeli homeowners?

Building insurance (bituach mivne) is mandatory only for mortgaged properties. Bank of Israel Regulation 451 requires all mortgage lenders to hold a valid building insurance policy throughout the loan term; the policy must name the bank as additional insured and include earthquake coverage. For outright (mortgage-free) owners, building insurance is not legally required but is strongly recommended given Israel's seismic risk. Contents insurance is always optional.