|Monday, September 13, 2021
What is earthquake insurance in Turkey? It is an insurance that includes damages that may befall the building after … 0
Earthquake insurance in Turkey and compensation for Turks and foreigners
What is earthquake insurance in Turkey?
It is an insurance that covers damages that may occur to the building after an earthquake.
Notably, earthquake insurance was imposed in Turkey after the Marmara earthquake in 1999 and is mandatory. Turkey has established the "Insurance against Natural Disasters", known as DASK, as the institution that pays earthquake insurance in Turkey and is supervised by the Turkish Ministry of Finance.
Who pays earthquake insurance in Turkey and when? and where?
Earthquake insurance in Turkey pays: the owner of the property has nothing to do with the insurance payment, and he pays the insurance for the first time at the beginning of the construction of the property to obtain specific services that can only be obtained after paying earthquake insurance in Turkey, and these services related to insurance payment:
- Phone and internet
The DASK document is a prerequisite when opening water, electricity and gas meters, as this is only possible after paying the insurance value for the first time. The property owner pays the earthquake insurance annually according to a certain date to be determined by DASK
Earthquake insurance in Turkey is paid in:
- Post office
- insurance companies
The importance of earthquake insurance in Turkey
- Paying the property owner in Turkey the value of earthquake insurance or what is known as "real estate insurance in Turkey" is very important for the following purposes:
- Ensuring the safety of the building and its resistance to earthquakes, which reduces the possibility of damage from earthquakes.
- Contribute to repairing the damage that occurs after any earthquake, tremor or environmental disaster.
- Reducing expenses for real estate owners in Turkey when such disasters occur
- Reducing expenditures on the state with regard to rebuilding its institutions and public utilities if they were damaged by natural disasters.
- Contribute to the population's awareness of the importance of sound and earthquake-resistant buildings
- Increasing residents' awareness of the importance of insurance in mitigating potential damages.
What does DASK insurance cover in Turkey?
- Physical damage: including damage to stairs and elevators
- Earthquake damage: including fire, explosion, and landslide damage to buildings
- This insurance covers compensation for damages, whether the damage is partial or total in the building
What buildings are covered by DASK insurance in Turkey?
- DASK insurance in Turkey includes the following buildings
- Buildings used for commercial purposes, for example buildings and offices
- Buildings still under construction, not yet completed
What buildings are not covered by earthquake insurance in Turkey?
- Buildings and detached sections subject to the Public Housing Act or those used as buildings for public services
- Buildings erected in some rural areas
- Also buildings that are entirely used for commercial or industrial purposes
- Likewise, buildings constructed without an engineering plan or project
- Buildings constructed in violation of relevant legislation
- Buildings to be demolished by licensed public institutions, neglected, dilapidated, or abandoned buildings, unfit for residential use.
Why Turkey imposes earthquake insurance on real estate?
The history of imposing earthquake insurance goes back to the aftermath of the devastating Istanbul earthquake in 1999, when due to the great destruction that affected several neighborhoods, including the Avcilar neighborhood, which was destroyed very badly.
After that, Turkey took several steps to avoid a repeat of the disaster that occurred. The Turkish steps are summarized as follows:
- Enforce earthquake insurance in Turkey
- Demolition and reconstruction of endangered buildings
- Implementation of a comprehensive urban transformation plan in Turkey
How do earthquakes affect real estate prices in Turkey?
- The impact of earthquakes on real estate prices in Turkey is proportional to two main factors:
- Appropriate precautionary measures within the policy of improving disaster management, which Turkey has already taken care of, especially the history of earthquakes in Turkey, which has given Turkish government agencies experience in dealing well with them.
- The steady increase in the population, which is approximately 1.8% in Turkey, and reaches in Istanbul to cross the threshold of 2.5%, which leads to an increase in the continuous demand for residential buildings in the long term, which means that earthquakes do not affect the real estate market directly , except if there is a building that has a construction problem, or it is classified as very dangerous, then there is no value for the building, but the value is for the land on which the building is located.
Do construction companies provide guarantees to foreign investors in the event of earthquakes?
Construction companies are legally required to construct earthquake-resistant buildings in Turkey, and therefore they are obligated to the investor if they fail in their legal obligations. It is worth noting that many construction companies mention in sales contracts the specifications of the buildings, the materials used in their construction, and the extent of their resistance to earthquakes. Most of the residential buildings are built to be resistant to earthquakes of 8 on the Richter scale, while huge buildings and vital projects such as airports, bridges, and metro stations are built to withstand earthquakes of 9 on the Richter scale.
Will the Turkish government compensate the "Turks and foreigners" affected by the earthquakes?
When an earthquake occurs, the Turkish government agencies take several measures to relieve and compensate those affected by the earthquakes, whether they are Turkish citizens, or residents of different nationalities on Turkish territory. These measures are as follows:
- Urgent housing is secured from prefabricated houses or tents for a temporary period.
- The damaged buildings are then examined, classified, and high-risk buildings are evacuated.
- Then the state pays the rent of an apartment suitable for the affected families.
- After that, housing is quickly built for those affected, for example, that the Turkish government construction company (TOKI) built Providing housing for homeowners affected by the Elazig earthquake that occurred on January 24, 2020, and these homes were provided at half their value.
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