Property Insurance in Turkey
There are different pre and after-sales procedures to follow when buying a property in Turkey and real estate insurance in Turkey is on the top list. Property insurance in Turkey, similar to other countries, is designed to protect property owners from financial losses resulting from damage or destruction to their properties. This insurance covers earthquakes and is required by the Turkish government to get your title deed authorized and regulated. Before subscribing to water, electricity, and gas, you need to get the DASK insurance for your property.
This article explains everything you need to know about earthquake insurance in Turkey. Let's keep reading!
What is DASK (TCIP) in Turkey?
DASK, officially known as Doğal Afet Sigortaları Kurumu, is a mandatory earthquake insurance program in Turkey, established to cover material damages to buildings caused by earthquakes. This insurance is essential due to Turkey's significant seismic activity. It is administered by the Turkish Ministry of Finance and provided by the Turkish Catastrophe Insurance Pool (TCIP), a joint initiative of the World Bank and the Turkish Government.
Is Earthquake Insurance Compulsory in Turkey?
Yes, DASK earthquake insurance is compulsory in Turkey for property owners. The Turkish government requires all homeowners to have DASK insurance, also referred to as “compulsory earthquake insurance.” The insurance is mandatory as Turkey is located in a seismically active zone, and it helps protect property owners from financial losses caused by natural disasters like earthquakes.
What Does DASK Insurance Cover in Turkey?
DASK insurance in Turkey primarily covers material damages to the structure of buildings, including:
- Structural Damages: This includes damages to the foundations, walls, ceilings, floors, roofs, stairs, and other structural components of a building.
- Related Incidents: In addition to direct earthquake damage, DASK insurance also covers incidents directly related to earthquakes, such as fires, explosions, tsunamis, and landslides resulting from an earthquake.
It's important to note that DASK insurance has specific limitations. For instance, it does not cover:
- The contents within a property, such as furniture, electronics, or personal valuables.
- Costs related to debris removal, loss of rent, alternative residence or workplace costs, or non-material damages.
- Bodily injuries or fatalities.
How to Calculate the Cost of Property Insurance in Turkey?
The cost of property insurance in Turkey, specifically DASK (compulsory earthquake insurance), is calculated based on several factors:
- Building Type: The construction material of the property (steel/concrete, stone-masonry, or other types) plays a role in determining the premium.
- Location: The insurance cost varies depending on the earthquake risk zone where the property is located. Turkey is divided into different seismic risk zones, and properties in higher-risk areas like Istanbul tend to have higher premiums.
- Property Size: The property's gross floor area, including the number of floors, affects the cost.
- Year of Construction: The construction date of the property can influence the premium, with different rates for older and newer buildings.
- Risk Group: The neighborhood and city where the property is located also play a role, as they are classified into different risk groups based on seismic activity.
How Much is the Earthquake Tax in Turkey?
DASK has 15 different tariff rates determined according to 5 risk zones and 3 different construction styles. The premiums are revised annually to reflect changes in construction costs and risk assessments. To get a precise calculation of the DASK insurance premium for a specific property, property owners can use the online premium calculation tools provided on the official DASK website or consult with insurance providers in Turkey.
The premium differs based on the specific characteristics of each property and its location. For instance, properties in regions with higher seismic risk might incur higher premiums. Similarly, larger properties or those built with certain materials might have different insurance costs compared to smaller or differently constructed buildings.
Documents Required to Obtain Earthquake Home Insurance
To obtain DASK insurance, you need to provide the following documents:
- TAPU (Title Deed): This is the official document proving property ownership. It's essential to verify that you are the legal owner of the property you are insuring.
- Identity Document: A copy of a valid identification document, such as a national ID card or passport, for the property owner.
- Turkish Tax Number: Property owners, including foreign nationals, are required to have a Turkish tax number for official transactions, including obtaining insurance.
- Details of the Property: This includes information such as the size of the property (in square meters), the construction year, the type of building material, and the number of floors.
- Address of the Property: A full and accurate address of the property is necessary for the insurance policy.
How to Apply for Dask Earthquake Insurance?
To apply for DASK earthquake insurance in Turkey, follow these key steps:
- Prepare Required Information and Documents: You'll need personal details (name, address, phone number, T.C. ID number or Tax Identification Number) and information about the property (address, Turkey Land Registry information, year of construction, building style, number of floors, condition, and gross area in square meters).
- Visit an Insurance Provider: Go to an insurance agency or Turkish bank branch with your documents.
- Premium Calculation and Payment: DASK premiums vary by region, reflecting the earthquake risk. The premiums are set by the Ministry of Treasury and Finance.
- Online Application Option: Some insurers might offer online application facilities.
How to Renew?
It's advisable to start the renewal process before your current policy expires, ideally at least 30 days in advance, to ensure continuous coverage. The renewal can often be done through the insurance company or bank where you initially purchased your DASK policy. Some providers may offer online renewal services as well, which can be a convenient option.
Policyholders who renew their policy each year may benefit from renewal discounts. The premium for the renewed policy is calculated based on factors such as the construction type of the dwelling, its gross area, the year of construction, the number of floors, and the risk group of the area. The premium amounts are designed to be affordable and are determined by the Compulsory Earthquake Insurance Tariff and Instruction.
After renewing, it's important to obtain proof of your renewed insurance policy, as this might be required for various administrative processes in Turkey.
What Parts of Turkey Are Not Affected by Earthquakes?
Turkey is located in a seismically active region, making it prone to earthquakes. However, certain parts of Turkey are less affected by seismic activity compared to others. Generally, the areas that are less likely to experience significant earthquake impacts include:
- Northwestern Turkey: Regions farther away from the North Anatolian Fault, such as parts of Thrace (including Edirne and parts of Kırklareli), are considered to have lower seismic risk.
- Central and Western Black Sea Region: Areas like Amasya, Tokat, and parts of Samsun are generally less impacted by major earthquakes.
- Central Anatolia: Some areas in Central Anatolia, including cities like Konya and Aksaray, are relatively less prone to significant seismic activity.
- Mediterranean Region: Regions like Antalya and Alanya, located in the southern part of Turkey along the Mediterranean coast, are also considered to have a lower risk of significant earthquake impacts compared to other areas of Turkey.
It's important to understand that “less affected” does not mean “no risk.” The entire country is prone to seismic activity to varying degrees, and earthquakes can occur in regions that are typically considered to have lower seismic risk. Additionally, seismic activity and risk can change over time, so it's important for residents and visitors to always be prepared for the possibility of earthquakes, regardless of where they are in Turkey.
We Support You in Obtaining Property Insurance!
If you choose to buy a property in Turkey through TERRA Real Estate, we provide you with a suitable guide to getting your property insurance covered. Our licensed real estate agents will assist you throughout the entire process, including collecting and organizing the necessary documents.
If you want to know what other services our team in TERRA Real Estate provides, follow this link.