According to the research conducted by the comparison site encazip.com, the rate of those who maintain Compulsory Earthquake Insurance in Turkey is 57,5 percent. According to the current data of 2023, approximately 8,5 million houses in Turkey do not have Compulsory Earthquake Insurance.
“Material losses are covered in cash”
Compulsory Earthquake Insurance insures houses against earthquakes and disasters such as fire, explosion, landslide and tsunami directly caused by the earthquake. Material damages in buildings are covered in cash within the limits specified in the policies. These limits are calculated according to the "Mandatory Earthquake Insurance Tariff and Instruction" published by the Ministry of Treasury and Finance. TCIP provides a maximum amount of collateral determined according to the increase in construction costs every year. According to the information obtained from the official website of TCIP, the premium amounts of the policies issued annually are calculated according to the construction style of the house, the gross surface area, the year of construction, the number of floors and the risk group of the neighborhood in which it is located. The maximum guarantee amount given by TCIP is 25 thousand TL for all building types as of 2022 November 640.
“Village settlements are not covered by insurance”
Persons whose house value exceeds the maximum coverage given by TCIP can obtain additional coverage from insurance companies for the excess amount if they wish. For this, it is necessary to have home insurance from private insurance companies. Village settlements are not covered by insurance, and Optional Earthquake Insurance can be made for structures in villages. The operation of the process is as follows: After the earthquake, the earthquake victims apply for damage, after the application, the TCIP damage assessment officer visits the insured residences, determines the damage and determines the compensation amount. The compensation amount is paid to the applicant (the person named in the deed) as soon as possible through the relevant banks.
“What does DASK insurance cover”
The Compulsory Earthquake Insurance covers buildings that were completely or partially damaged during an earthquake. Foundations, main walls, common walls separating independent sections, garden walls, retaining walls, ceilings and floors, stairs, elevators, landings, corridors, roofs, chimneys and similar complementary parts of the building are covered together or separately.
“Does not cover the item, loss of business and profit”
Debris removal costs, loss of profit, business interruption, deprivation of rent, alternative residence and workplace expenses, financial responsibilities and all other indirect damages that can be claimed, all kinds of movable property, goods and similar, all bodily damages and death, moral compensation claims, This insurance does not cover earthquake and damages other than fire, explosion, tsunami or landslide caused by earthquakes, and damages that occur over time due to the faulty structure of the building itself, regardless of the earthquake. In addition to the Compulsory Earthquake Insurance, different housing insurances can be taken out for these damages.
“The damages of vehicles without insurance will not be covered”
In an earthquake, not only houses and workplaces, but also vehicles can be damaged. Thousands of vehicles can become unusable. Similar situations were experienced in the earthquakes that occurred on February 6, but vehicle owners who do not have an insurance will not be able to compensate their losses. According to the data of the Insurance Association of Turkey (TSB), only 10 thousand of the 3.1 million vehicles in the 538 provinces where the earthquake occurred are insured. Considering the ratio, it is seen that only 17.1% of these vehicles have insurance. In other words, 2.6 million vehicles do not have an insurance policy, so the damages of these vehicles will not be covered.
“DASK is necessary but not sufficient, housing insurance should also be taken out”
Stating that those who do not have TCIP cannot start electricity, water or similar subscriptions, Çağada Kırmızı, the founder of encazip.com and savings expert, underlined that it is mandatory to have TCIP, and emphasized the importance of having housing insurance in addition to TCIP. Crimea continued:
“According to the current legislation, TCIP covers only 640 thousand TL of the damages that will occur during the earthquake and its aftermath. We think that the damages that may occur in the houses in a possible earthquake will exceed 640 thousand TL, especially due to the increasing construction costs. In order to cover all the damage and to avoid difficulties in a disaster, we recommend taking out a house insurance in addition to TCIP.”