In Turkey, a country known for its rich history and geographical diversity, real estate insurance protects property owners from potential financial losses due to natural disasters and other risks.
This includes compulsory insurance like DASK (Doğal Afet Sigortaları Kurumu), mandatory for every property owner in Turkey and covers damage caused by earthquakes but not other natural disasters or non-compliance with building regulations.
You can also purchase voluntary home insurance to cover a broader range of risks, including fire, flood, and theft.
With Turkey’s significant seismic activity, understanding and obtaining the right insurance policy is recommended and often compulsory.
Types of Real Estate Insurance in Turkey
1. Compulsory Earthquake Insurance (DASK):
Turkey is a seismically active zone, making earthquake insurance essential. The Turkish government requires property owners to have DASK insurance, also known as the Turkish Catastrophe Insurance Pool, emphasizing the compulsory nature of DASK earthquake insurance.
This insurance is crucial for property owners and tenants, covering material damages caused by earthquakes and related natural disasters such as fires, landslides, and tsunamis.
DASK insurance cover is designed to offer essential protection against the physical damage to the structure of residential properties resulting from these events.
The coverage includes specific limitations, ensuring that the insured can receive support for repairs or reconstruction within the policy's scope.
The process to obtain DASK insurance involves submitting necessary documents to a state-owned insurance company, highlighting the importance of this coverage for securing the well-being of residents in earthquake-prone areas.
The coverage is limited to specific amounts, depending on the property’s square meters and construction type, but it ensures essential protection.
2. Comprehensive Property Insurance:
Beyond the mandatory DASK, property owners are advised to consider a voluntary insurance policy for comprehensive home insurance that covers risks beyond earthquakes.
This type of insurance can include protection against other natural disasters, theft, fire, explosion, and even damage to household appliances, as well as safeguarding against illegal actions of third parties.
While a voluntary insurance policy can encompass earthquake coverage, it’s crucial to note that it does not replace the need for mandatory DASK earthquake insurance in Turkey.
Insurance companies in Turkey offer various packages for voluntary insurance policies, and the costs can vary depending on the property’s value, size, and location.
Filing insurance claims with a comprehensive property insurance policy can significantly benefit property owners by compensating for damages not covered by DASK, ensuring a broader indemnification scope.
3. Homeowners Insurance:
Homeowners insurance in Turkey is broader and covers the structure and the home's contents. This is important for those with valuable furniture, personal items, and additional equipment within their property.
Coverage details and premiums may vary depending on the insurance provider and the property’s risk factors.
Critical Considerations for Property Insurance in Turkey
1. Insurance Company Selection:
Choosing the right insurance provider is critical. Property owners should look for companies with robust financial health, excellent customer service, and transparent claim processes.
It is beneficial to review and compare different policies to ensure that they meet specific needs without excessive costs.
2. Additional Coverage:
Obtaining additional insurance to cover these specific risks is wise for properties in areas with a high risk of other natural disasters or for properties like holiday homes.
Extra insurance options can be tailored to include flood, landslide, or even terrorism-related damages, depending on the property's location.
3. Voluntary Insurance Policies:
While DASK covers earthquake-related structural damage, homeowners might want to invest in voluntary insurance policies that provide broader coverage.
These might include cover for material damage to interiors and personal belongings or even loss of rental income insurance for property owners who lease their properties.
4. Costs and Premiums:
The cost of real estate insurance in Turkey depends on several factors, including the property’s location, construction year, building style, and coverage extent.
Properties in higher-risk areas like Istanbul or Izmir might attract higher premiums—moreover, the more comprehensive the coverage, the higher the premium.
Legal and Documentation Requirements
To obtain any property insurance in Turkey, property owners must provide specific documentation such as the title deed of the property, detailed information about the construction, and, in some cases, even passport numbers for foreign property owners.
Property owners must understand that DASK insurance is compulsory for every property owner in Turkey, highlighting the importance of fulfilling legal and documentation requirements to protect their property.
Ensuring all documents are correct and up-to-date can facilitate a smoother insurance application process.
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Conclusion
Understanding and obtaining the correct type of real estate insurance is essential for anyone investing in or owning property in Turkey.
It protects against financial losses from natural disasters and secures peace of mind. The Turkish government's regulations and the availability of various insurance options position property owners well to safeguard their investments effectively.
Insurance is an indispensable part of property ownership in Turkey, whether for a residential home, a holiday property, or a commercial building.
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