Earthquake insurance in Turkey
Earthquake insurance in Turkey
Earthquakes in Turkey
Turkish geography is characterized by its exposure to many earthquakes and earthquakes that have claimed the lives of many people in a large number of Turkish states. Therefore, investors and businessmen who want to own real estate in Turkey must take this matter into consideration, and work to buy a property with earthquake-resistant specifications.
The fact that earthquake is the most common type of disaster in our country during the past sixty years is not an unexpected situation for our country, and almost all Turkish regions or cities are located in the earthquake zone.
Moreover, the nature of the earthquake as a type of natural disaster can affect not only the region but also the country economically.
But before talking about earthquake-resistant buildings and the specifications they enjoy, it is necessary to talk about earthquake insurance in Turkey, through which it works to reduce the damage caused by disasters that may be exposed to residential or commercial construction.
What is earthquake insurance in Turkey?
Earthquake insurance, or as it is known in Turkey as Doğal Afetler Sigortaları Kurumu, which is abbreviated in Turkey as DASK by abbreviating the first letters in the Turkish sentence. Where this sentence can be translated as insurance against natural disasters.
After the devastating earthquake that Turkey witnessed in the year 1999, a foundation against natural disasters was established in Turkey in the year 2000, and through the laws issued by this institution, earthquake insurance in Turkey is mandatory insurance by the Turkish government.
Based on the approach of this institution that says: „The earthquake will pass, and life will go on“, the International Cooperation for Civilian Protection program aims to enable citizens to safely continue their lives where they left off after the earthquake.
With compulsory earthquake insurance, it provides a financial guarantee to insured homeowners against fire, explosion, landslide and tsunami risks caused by earthquakes and earthquakes.
Whether the buildings are uninhabitable or partially damaged, they compensate for the damage to the building in the fastest way, and mediate the return to normal life.
This institution aims to increase the spread of compulsory insurance against earthquakes, through its distribution network consisting of insurance companies, subsidiary agencies and bank branches across the country, and it also aims to facilitate access for everyone to this security with the low costs of the installments that it applies.
This insurance, which was imposed by foreigners for Turkish citizens or residents of Turkish territory, includes all real estate in Turkey regardless of the type of property, whether it is residential, commercial or other types of real estate.
Also, it is not possible to perform any official transaction related to the purchase or rental of construction or real estate units without obtaining DASK insurance within Turkish territory. Through this insurance, expenses for real estate investors in Turkey are reduced in the event of any kind of natural disasters that may be exposed to buildings in Turkey.
What are the objectives of earthquake insurance in Turkey?
Compulsory earthquake insurance is a guarantee system to cover material damage caused by an earthquake to your building. In this way it aims to continue life within basic parameters before the earthquake.
It is possible to limit the main objectives of this system, which was established in cooperation between the state and the insurance sector, in order to meet the needs in the most effective and fastest way.
- Protect all residences in the range from earthquake at reasonable installments.
- Ensure local risk sharing.
- Distribute the financial liability that the earthquake damage will bring to the International Insurance Corporation (reinsurance) and the capital markets.
- Reducing the financial burden on the country resulting from earthquakes, especially with regard to housing construction after the earthquake.
- Preventing potential additional taxes arising from the financial burden of the state on citizens.
- The use of the insurance system as a motivational tool in the production of health buildings.
- Ensuring the long-term accumulation of resources to counter earthquake damage.
- Contributing to the development of insurance awareness and social solidarity in society, where we have to live with the reality of the earthquake.
- Do not forget to take your compulsory earthquake insurance, so that we can achieve all these goals together, and have more safety in the individual and the country after the earthquake.
How is the earthquake insurance institution formed in Turkey?
The earthquake insurance institution in Turkey is made up of seven members including the president of the institution, and they are chosen by the „Board of Directors of the Natural Disaster Insurance Corporation“. Members of the foundation are distributed among the Turkish state ministries.
The management body of the institution includes members from the Ministry of Treasury and Finance, the Ministry of Environment and Urbanization, the Ministry of Interior for Disaster and Emergency Management, members of the Capital Markets Board of the Union of Insurance, Reinsurance and Retirement Companies in Turkey, and other representatives of universities and the technical operator of a representative of the Turkish Reinsurance Company .
The members of the Board of Directors consist of five senior government officials, one official for the private sector, and one representative of universities specialized in various subjects.
The formation of the Board of Directors depends on the representation of relevant parties and the successful implementation of the compulsory earthquake insurance program.
What parts of construction are covered by earthquake insurance in Turkey?
Everything related to building fundamentals, basic walls, separating walls, garden walls, retaining walls, ceilings and floors, staircases and elevators, skylights, corridors, roofs, chimneys, and complementary parts at the top of the building is included in earthquake insurance in Turkey.
What are the things that are not covered by earthquake insurance in Turkey?
There are some things that are not included in the general earthquake insurance, and they can be presented through the following:
- Bodily damage and death.
- Moral damages.
- Everything related to the issue of the cost of removing rubble.
- The material responsibilities that the homeowner can bear as a result of the damage.
- All kinds of goods, furniture and luggage.
- Damage caused by fire, tsunami, or landslide caused by an earthquake.
- Damage caused by an earthquake to the building, which is caused by a malfunction or a deficiency in the building.
- Losses in profits.
- Disable rent.
- Expenses of the home / alternative workplace.
Who pays earthquake insurance in Turkey? And when do you pay? Where is it paid?
The owner of the property pays the earthquake insurance in Turkey without the tenant having any relationship to the payment of this insurance. As the insurance is paid at the beginning of the construction of the property in order to obtain specific services.
The DASK policy is a prerequisite when opening water, electricity and gas meters, as this can only be done after paying the insurance value for the first time, and water, electricity and gas meters can be opened by the property owner himself, or the tenant, provided he obtains a copy of the DASK earthquake insurance policy.
Then the property owner pays earthquake insurance annually according to a specific date to be determined by DASK, and earthquake insurance in Turkey pays in
- Post office.
- Insurance companies.
The importance of earthquake insurance in Turkey
The importance of earthquake insurance in Turkey can be summed up through the following points:
- Ensuring the safety of the building and its resistance to earthquakes, which reduces the possibility of damage from earthquakes.
- Contribute to repairing the damages that occur after any earthquake, shakeout or environmental disaster.
- Reducing expenses for real estate owners in Turkey when such disasters occur.
- Reducing expenditures on the state in terms of rebuilding its institutions and public utilities if they were damaged by natural disasters.
- Contribute to the population’s awareness of the importance of sound and earthquake-resistant buildings.
- Increasing residents‘ awareness of the importance of insurance in mitigating potential damages.
What buildings are covered under the earthquake insurance in Turkey DASK?
Items that include buildings covered in earthquake insurance in Turkey can be collected and subtracted through the following points:
- Residential buildings that the Turkish government aims to provide for public services.
- Residential buildings that the Turkish government donates to residents during disaster crises.
- All real estate registered in the Turkish Tabu Directorate, such as villas, apartments, and commercial buildings.
- All properties that are intended for work, provided that they are registered in the Land Registry Directorate.
- Sections of floors subject to property law such as roofs, garages, and service facilities.
- Buildings that have a „real estate easement“ document: that is, under construction, but that meet the conditions of construction and real estate records, and have a real estate easement title.
- Buildings that meet the construction requirements but do not have a „commercial or residential“ building description.
What buildings are not covered by earthquake insurance in Turkey?
There are some residential buildings that do not meet the conditions of insurance in the matter of disasters, so earthquake insurance in Turkey does not include the following buildings and properties:
- Independent real estate and sections that are subject to Public Housing Law No. 2946 of 11/9/1983 or used as buildings for public service.
- Abandoned, abandoned or uninhabited buildings, which are never used for the purpose of housing or for the purpose of trade.
- Buildings that were built without any engineering planning or construction project.
- Buildings that received a demolition notice issued by the Turkish state.
- Buildings that have been modified or weakened to negatively impact the general building system or reconstruction plan.
- Village houses or houses that are built in the countryside or popular areas and do not obtain building permits and do not observe modern building legislation in Turkey
How is earthquake insurance calculated in Turkey?
The method of calculating earthquake insurance in Turkey is related to real estate, as earthquake insurance is calculated in Turkey depending on several factors, such as:
- The geographical location of the building: the city in which the building is located, the neighborhood and the street.
- Structural construction
- Age of construction
- Building or fissure area.
The annual value of earthquake insurance in Turkey cannot exceed an amount of $ 40 as an upper limit for a single apartment in general, as this value is considered relatively low, and changes are expected in relation to determining the value of the annual insurance, and several considerations related to the property are involved in determining the value of the insurance Building and floor number.
- The price of the compulsory earthquake insurance tariff will be increased by 10 percent in buildings with the building permit year for immovable property, 2000 and earlier.
- For buildings with 3 floors or less, the rate of the compulsory earthquake insurance tariff will be reduced.
- In buildings with 8 floors or more above ground level, the tariff for compulsory earthquake insurance will be increased by 10 percent.
- The ground floor and basement floor below will not be included in the floor number calculation.
What documents are required to obtain a DASK?
The information and documents required for compulsory earthquake insurance in relation to the building owner are as follows:
- Turkish identity from Turkish citizens or residency of foreign citizens.
- Residence deed
- Tax identification number (for legal entities).
- Telephone number.
As for the information and documents required for compulsory earthquake insurance in relation to construction, they are as follows:
- Open the address.
- Degree information.
- Year of construction.
- Chassis style.
- The total number of floors.
- Damage condition.
Source: Earthquake Insurance Corporation of Turkey
Edited by Taksim Homes
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