Property Insurance in Turkey

Property insurance has always been critical for homeowners all around the world. It is expensive to rebuild a house or buy new furnishings after a natural disaster. Paying tiny sums of insurance charges yearly, on the other hand, is far more inexpensive for everyone.  As a result, the majority of homeowners choose to insure their residences.

If you want to enjoy the advantages of real estate ownership in Turkey,  to reassure the consumer about this plan, ensure that they are properly covered. Home insurance in Turkey protects your house against fire, water, burglary, and earthquakes all in one policy. In addition, this policy provides various additional coverages as compared to standard property insurance.

Do You Need a Property Insurance in Turkey?

The simple answer is yes.

Insurance is one of the most crucial stages in guaranteeing the utmost safety of the real estate you have purchased. This is the most important issue for the customer who will spend extended periods away from Turkey. You may insure your real estate against the harmful impacts of weather and natural disasters, third-party injury and damage, theft, misconduct, fire, and so on.

In Turkey, real estate insurance against earthquakes, known as DASK, is required. The DASK policy is necessary for enrolling counters for water and electricity, as well as acquiring a residence permit in Turkey.

What is DASK?

Turkish government made this insurance mandatory and authorized it. The Natural Disaster Insurance Institute owns it (DASK). This insurance covers damage to structures caused by earthquakes, such as physical damage, fires, explosions, and landslides. It also covers building foundations, primary walls, between building parts, staircases, ceilings, floors, roofs, corridors, elevators, and so on.

The necessity of earthquake insurance in Turkey is related to the necessity of house and real estate insurance against unanticipated dangers. The primary goal of house insurance is to limit physical damage in risky scenarios that you may face and may be unable to handle on your own, allowing you to resume your everyday life after the earthquake.

How is DASK Renewal Made?

Compulsory natural disaster insurance, commonly known by the abbreviation “DASK”, is a policy created by the World Bank and the Turkish government. It is provided by the Turkish Catastrophe Insurance Pool (DASK). This type of insurance can be made both online and face-to-face. Residential owners can use the TCIP policy within 1 year for necessary transactions and insure themselves against earthquakes and their effects. The insurance contract must be renewed every year before the expiry of the policy. The renewal process can be carried out easily by giving a power of attorney to the insurance company or by making an application.

Is there a Penalty for not Having a DASK?

This type of insurance, like all other compulsory insurance transactions, is a mandatory procedure without being left to personal preference. However, although it is mandatory, there is no financial penalty to deter citizens.

What is DASK Guarantee?

Dask is a type of natural disaster insurance that homeowners must have. With this insurance, it is guaranteed that the material damages caused directly by the earthquake and the fire, explosion, tsunami, and landslide that may occur as a result of the earthquake are covered within the limits specified in the policy.

What Does Property Insurance Cover?

The property insurance covers fire, lightning, explosion, theft, strike, riot, civil commotion, flood, vehicle and aircraft impact, internal water, smoke, storm, heavy snow, landslide, inflation, joint property cover, painting, and whitewashing done by tenants, direct damage from fuel leakings, accidental breakage for home furnishings, personal accident insurance, third party liability insurance, private sports equipment insurance, legal protection insurance, removing expenses, rent cover.

How Can I Ensure My Property Insurance Covers Everything?

Building insurance, contents insurance, and house insurance are all available from insurance companies. Property insurance protects both your belongings and the structure itself, whereas building insurance just covers the structure and contents insurance only covers your stuff.

What are the Top Insurance Companies in Turkey?

The top insurance companies in Turkey are as follows:

  • Aviva: For more than 30 years, Aviva has been Europe’s leading provider of insurance, savings, and investment solutions. It also has substantial activities in several foreign countries. They integrate the businesses of life insurance, general insurance, and asset management under a single formidable brand.
  • Groupama: Groupama specializes in group and individual insurance products. Groupama, a multi-line insurer in France, operates a group of regional mutual insurance businesses that offer life, health, and property/casualty insurance throughout France. In addition to retirement savings, banking, and asset management, the company provides these services.
  • Allianz Insurance:  This top general insurer in the United Kingdom provides a wide range of services, including property, liability, and auto insurance. Risk management and insurance services are also offered. There are several niche products provided by each company category, including weddings, musical instruments, and pet insurance.

Which Company Has the Best Insurance Policy in Turkey?

According to a survey by Istanbul University AVISA insurance firm ranks first in Q, S, and R. By majority, this compromise option is stable inside a decision-making process, in which it had the best financial performance in 2015/3, according to the data.

In addition to Turkey’s largest direct sales team, AVISA’s strong network comprised of Akbank associations, as well as agencies, telesales channels, and its corporate projects team, provides customers with innovative “private pension,” “life insurance,” and “property insurance” products.

What are the Property Insurance Options in Turkey?

Property insurance often covers damage caused by fire, smoke, wind, hail, the effect of snow and ice, lightning, and other weather-related disasters. Additionally, property insurance covers the structure and its contents in the case of damage or theft. Finally, property insurance provides liability coverage if someone other than the property owner or renter is injured on the property and sues.

Property insurance coverage often excludes damage caused by a range of catastrophes, such as tsunamis, floods, drain, and sewage backups, seeping groundwater, standing water, and a variety of other water sources. Furthermore, most insurance will not cover severe occurrences such as nuclear disasters, acts of war, or terrorism.

Total replacement cost, actual cash value, and extra complete replacement cost are the three types of real estate insurance policy. Total replacement cost covers the expense of repairing and maintaining the property of equal or more excellent value. The warranty is based on the replacement cost of the product rather than its monetary worth. In the case of actual cash value, the owner or tenant receives the replacement cost less depreciation. If the damaged item is ten years old, you will receive the value of a ten-year-old item rather than a new one. Extended replacement costs mean that the limit is the insurance company’s highest benefit for a particular scenario or incident. It will pay more than the coverage limit if building expenses have increased. However, this will typically not exceed 25% of the maximum when buying an insurance policy.

Relocation costs owing to the loss of rent and the cost of moving to a new location due to the damage caused by a natural disaster such as an earthquake or volcanic eruption. The cost of insurance is based on the square footage of the property and its claimed value.

Please note that the prices shown below are only examples based on current exchange rates and that actual pricing in Istanbul may differ.

  • One bedroom flat for about 100 USD
  • Two bedroom flat for about 140 USD
  • Three bedroom flat for about 160 USD
  • Houses about 240 USD

How Much Does It Cost to Have My House Insured in Turkey?

Property insurance in Turkey is calculated by the size and shape of the home or property (Istanbul Property). The maximum amount of coverage does not exceed, and the total amount of insurance for all types of structures is 4,112 USD. The cost of reconstructing the demolished home, ignoring the value of the land, is considered, as are the requirements for the building’s closeness or distance from the earthquake locations.

Is the Cheapest Insurance Enough for My House?

It is usually preferable to seek insurance that matches your demands rather than the lowest price. Instead, you should investigate the area’s vulnerabilities, such as the risk of an earthquake.

Is Property Insurance Obligatory for a Newly Purchased Home in Turkey?

Yes, property insurance is obligatory for a newly purchased home in Turkey. After the great earthquake in Turkey in 1999, housing insurance against earthquakes, known as Dask insurance, became mandatory. Houses must be insured against earthquakes. However, the bank will need insurance.

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