Earthquake insurance in Turkey
Earthquake insurance extraction mechanism in Turkey
Because at Skyline Real Estate we are keen to inform you about everything related to the real estate market in Turkey. Today we chose to talk to you about an important aspect (earthquake insurance in Turkey). As a result of the earthquakes that strike the Turkish state from time to time, the Turkish government issued a requirement to obtain this insurance in order to guarantee the rights of real estate owners.
The importance of this insurance - how to extract it - its cost - how to renew it and all the information that interests you about it we present to you in this article.
What is earthquake insurance in Turkey?
Also called DASK, it is an insurance policy that real estate and apartment owners in Turkey extract in order to obtain material compensation in the event of any damage to real estate as a result of an earthquake or natural disaster.
It should be noted that this insurance did not exist before 1999, when a major earthquake occurred that year, which caused many damages, forcing the Turkish government to make it compulsory.
Earthquake insurance cost:
One of the common questions asked about this is (the cost of obtaining this insurance) is it high and is it a one-time payment? Or is it annual or monthly?
At the outset, we must point out that the cost of obtaining this document is not fixed and varies according to the property, its area, and its material value, as well as according to the insurance company that is dealt with.
Its cost is determined according to the city in which the property is located. The more earthquake-prone the city or region, the higher the cost.
Criteria for calculating the cost of earthquake insurance:
We have already indicated that the cost of this insurance varies according to the property, and through the following paragraph we will indicate the factors that are taken into account.
- The age of the building, is it old or new?
- The size of the apartment, big or small?
- Property location.
- The city in which it is located.
- its specifications.
The amount is paid annually to one of the construction companies that has been granted a license by the Turkish government.
When the earthquake occurs, the property owner is compensated with a sum of money (two hundred thousand Turkish liras, but is this amount fixed for all damaged properties? Certainly not, it varies according to the state of damage to the property. If it has been significantly damaged or destroyed, it is granted more than this amount.
Can all real estate be insured against earthquakes?
One of the information that you should know about this insurance is that not all real estate can be insured and there are some cases that are not covered, and this is what we will talk about in the next paragraph.
First: Real estate or buildings that are used for business and commercial purposes cannot be insured against earthquakes.
Second: Buildings or real estate located in villages and rural areas.
Third: the apartments that are still under construction (the construction stages of which have not yet been completed).
Fourth: Real estate that has not been registered in the title deed.
Fifth: The demolished buildings or those that are not suitable for housing.
Sixth: The buildings that are used for public services.
In the event that you had to obtain earthquake insurance for the property you own in Turkey, but you ignored the matter and did not adhere to it, there are many things that you will not be able to do, such as:
- Selling or disposing of the property freely.
- Rent it to take advantage of the monthly return it provides.
- Subscription to the water or electricity service.
What costs are not covered by earthquake insurance in Turkey?
Obtaining this insurance for real estate in Turkey does not mean that it covers all costs or damages that will result from the disaster. There are many things that it includes, such as:
- The cost of removing the rubble or debris that resulted from an earthquake or disaster.
- It is not possible to get compensation in lieu of rents (because the property after the earthquake will not be suitable for rent).
- Property, furniture, furnishings, etc. are home belongings.
- Death or bodily harm.
Why should you obtain earthquake insurance?
There are many reasons that make you insist on obtaining earthquake insurance in Turkey when you buy a property there, and they are as follows.
1 - The property owner feels safe because his property will be built in accordance with international specifications.
2 - In the event of any disaster, he will not lose much money, as he will receive a good compensation amount.
3 - The percentage of your property's exposure to damages is much less than the properties built in violation.
Should buying real estate in Turkey be undone?
After investors and foreigners learned that earthquakes strike Turkey from time to time, they may back away from owning in Turkey for fear of losing their money. Is this correct behavior in your opinion?
What can be said here is that it is unfair to give up all the privileges offered by Turkey and flee due to a natural disaster over which we have no control and which could afflict or strike any other country in the world.
It should be noted that many countries around the world suffer from natural disasters, for example, Japan is constantly hit by the tsunami and the United States of America as well, and there are many countries that are swept by winds or spread by fires.
The most feasible move away from real estate investment in Turkey is to search for properties that are built according to international quality standards and are resistant to earthquakes.
It is very easy to find an apartment or property in Turkey that is resistant to this disaster, as construction companies seek to build distinctive and modern projects and use the best and highest quality building materials.
Turkish government decisions regarding seismic areas:
The government in Turkey has spared no effort to reduce the damage in the event of an earthquake, and the most important thing it has made in this regard is that it has prevented the construction of high-rise real estate projects in the areas hit by those disasters, but rather put a lot of controls that construction companies must abide by.
Have you wondered the main reason why the Turkish government is imposing urban transformation plans? And the reasons that made it target remote or old areas?
Because its main goal is to replace dilapidated or old real estate and housing projects with modern and high-end ones, resistant to earthquakes and built on a sound foundation.
During the coming years, you will find that Turkey has become one of the most important countries to buy a distinctive property at a low price, and this is indicated by the urban development plans witnessed by the real estate arena, the rapid growth and great modernity.
One of the important tips that we offer at Skyline Real Estate to our valued customers is not to buy a property for which it is not possible to obtain insurance.
We are always with you and we are fully prepared to provide you with the help you need as we work to provide integrated real estate for investors and anyone who wants to own property in Turkey, with Skyline you will not only get a real estate but a lifestyle.