The Compulsory Earthquake Insurance and Property Insurance in Turkey

The devastating results of the 17 August 1999 Earthquake in Turkey alerted and shaped the Turkish public opinion about the reality of the earthquakes and natural disasters in general. A mandatory earthquake insurance policy was among the precautions taken to prevent the danger of earthquakes and to never have to experience such a blow from this natural disaster.

Shortly after the 1999 earthquake, the Turkish Catastrophe Insurance Pool (DASK) was established and in 2000 the first insurance policy was issued by the institution. Today, more than %59 of all eligible properties are under the protection of this insurance policy. Of course all of this is for good reason. Although it is compulsory, insuring your property with DASK also makes other aspects of living in or acquiring a property convenient. Without DASK you will not be granted a credit for purchasing property and you will not be able to register for utility services essential for your living such as electricity or natural gas subscriptions of your residence.

 

What is DASK? 

DASK (Tur. Doğal Afet Sigortalar Kurumu ) or the Turkish Catastrophe Insurance Pool is the Turkish public institution that developped the Compulsory Earthquake Insurance that is still being issued in Turkey. Although DASK is the name of the institution, it is generally used to refer to the Compulsory Earthquake Insurance issued by this institution (Example: Does this property has DASK?).

 

What is the Compulsory Earthquake Insurance in Turkey? 

The CEI is a kind of mandatory insurance developed by the Turkish Catastrophe Insurance Pool in 1999 to cover the material damages caused by an earthquake or by damages caused by the direct effects of an earthquake. For example, if material damages are caused by tsunamis, landslides or fires that are triggered by an earthquake, the damages are also under the coverage of this insurance. CEI is issued for 1 year and must be renewed annually.

Which properties in Turkey are covered by the Compulsory Earthquake Insurance?

Every property that is located within the borders of a municipality and has a “residence” status is covered by the CEI. The buildings used for commercial purposes such as offices, malls etc. Are not covered by the CEO. However, if a business or an office is located in a property that also has residential sections, then CEI is mandatory for the business owners.  Also, the buildings that are under construction and the buildings that are built in violation with the building codes are not covered by the CEI.

 

How to acquire the Compulsory Earthquake Insurance in Turkey?

The CEI can easily be acquired from almost every private insurance agency operating in Turkey. The Turkish Catastrophe Insurance Pool has authorized plenty of these private agencies which are functional for the wide adoption of this insurance. The insurance policy can be acquired online, via an agency office or with any bank branch. For the updated authorized agency list the official DASK Website can be visited: https://dask.gov.tr/tr/acenteler

 

The following information & documents must be provided in order to obtain the Compulsory Earthquake Insurance in Turkey;

Property Owner’s:

Name

Address

Phone Number

Citizenship Number

Tax Number (for legal subjects)

 

Property’s :

Full Adress

Copy of Title Deed

Construction Year

Construction Type

Total Number of Floors

Damage Status

 

Apartment’s:

Brute Area

Managery/Usage

 

Which coverages DASK’s Compulsory Earthquake Insurance in Turkey has?

The Turkish Catastrophe Insurance Pool (DASK)’s Compulsory Earthquake Insurance covers the material damages caused by an earthquake or material damages caused by other natural disasters that were triggered by an earthquake. The insured property is under the coverage of CEI regardless of the type of damage. It makes no difference if it is partially or fully damaged by an earthquake or by the direct effects of an earthquake.

The material damages are compensated with cash payments and every year The Turkish Catastrophe Insurance Pool announces the maximum compensation quote for that given year. In 2022 the maximum compensation amount that can be paid is 320.000 TL.

The indirect material losses such as loss of property income, profit loss, damage to your body and health, and business interruption are not under the coverage of CEI.  Also, any damage more than this amount will not be covered by the institution. That is why people seeking for full or at least a more comprehensive coverage for their properties tend to acquire a property insurance in Turkey in combination with the earthquake insurance.

What is the property insurance in Turkey?

Property insurance in Turkey is a type of policy that aims to protect your property and the materials in that property from unexpected factors. These factors can be inflicted from natural causes such as floods, earthquakes, landslides and from other people such as theft, vandalism etc. Although the property insurance also covers the damages from natural disasters, its’ coverage is more comprehensive. Additionally, the property insurance is not a mandatory insurance policy like DASK. When compared to DASK, the property insurance policy in Turkey covers a wider portion of risks and it can be more modified flexibly depending on your needs.

 

What are the types of property insurance in Turkey?

Property insurance in Turkey are not officially categorized under certain sections and it can vary depending on the insurance agencies you are working with. However, it is also safe to say that the property insurance roughly falls under 3 main categories: principal home insurance, rental home insurance and business/workplace insurance. These property insurances will more or less cover the losses inflicted by a natural cause, unnatural causes and accidents. Theft, flood, gas leakage, profit loss due to power outage and even accidents caused by clusiness can comprehensively be added to the policies. The property insurances in Turkey can easily be tailored depending on the needs and will result in different quotes from different agencies.

 

What are the differences of Compulsory Earthquake Insurance (by DASK) & property insurance in Turkey?

The main difference of these two types of insurance policies obviously lies in the CEI is compulsory and the property insurance is not. Also, the CEI can only cover the damages inflicted by or related directly to earthquakes. Additionally, there is a maximum coverage amount of the CEI that is decided by the Turkish Catastrophe Insurance Pool (DASK). If you own a property that is valued higher than this maximum amount, you have to obtain a property insurance to also insure the value left out by the earthquake insurance.

Needless to say the property insurance and the earthquake insurance covers the damages caused by earthquakes but the property insurance in Turkey has a much wider coverage. More or less, everything from your furniture to your loss of profit due regardless of the nature of the damages (human-induced or natural) can be included in your property insurance policy. However, this is clearly not the case for Compulsory Earthquake Insurance.

 

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