A. INSURANCE COVERAGE
A.1- Coverage of Insurance
In accordance with the Catastrophe Insurances Law No. 6305, independent areas within the scope of Law 634 on Property Ownership, buildings which were built as dwellings on immovable property which are registered in the title deeds and subject to private ownership, the independent areas within these buildings used for commercial, offices or similar purposes, and the dwellings built by the state or with loans disbursed as a result of natural disasters are subject to Compulsory Earthquake Insurance.
With this insurance, material losses directly caused by earthquakes and damages caused by fire, explosions, giant waves (tsunami) or landslides caused by an earthquake in insured buildings (foundations, main walls, common walls separating independent sections, garden walls, retaining walls, ceilings and floors, stairs, elevators, landings, corridors, roofing and chimneys, including damages occurring in similar complementary parts of the building) are guaranteed by the Turkish Catastrophe Insurance Pool (the TCIP) up to the insured amount.
A.2- Buildings Excluded from the Insurance Coverage
The buildings listed below are not covered by this insurance.
Buildings and independent sections subject to Law 2946 on Public Housing dated 9 November 1983, or used as public service buildings,
2.2- Buildings built in and around village settlement areas and in hamlets by those who are registered to the village population and who are permanent residents of the village,
2.3- Buildings which are used in their entirety for commercial or industrial purposes,
2.4- Buildings which were not designed and did not receive engineering services,
2.5- Buildings which are found to have been modified or weakened in a manner which would adversely affect the structural integrity of the building,
2.6- Buildings constructed in violation of the relevant legislation and the design in a manner that would adversely affect the structural integrity of the building,
2.7- Buildings which have been condemned for demolition by authorized public institutions and buildings which are not suitable for residential use, are neglected, worn out or abandoned.”
A.3- Cases Excluded from the Coverage
The following cases are excluded from the insurance coverage.
3.1- Debris removal costs, loss of profit, business interruption, deprivation of rent, alternative dwelling and workplace expenses, financial responsibilities and similar indirect losses,
3.2- All kinds of movable goods, articles and the like,
3.3- All bodily harm, including death,
3.4- Non-pecuniary (immaterial losses, such as of an emotional or moral nature) compensation claims,
3.5- Damages other than those caused by earthquake or fire, explosion, giant waves (tsunami) or landslides caused by an earthquake,
3.6- Damages which occur over time due to the building's own defects or features which are unrelated to a specific earthquake event.
A.4- Determination of Insurance Amount
In determining the insurance amount, the amount calculated by multiplying the price per square meter determined in the "Compulsory Earthquake Insurance Tariff and Instruction", which is published by the Undersecretariat of Treasury, for the construction style of the insured dwelling, by the gross area (or approximate area) of the same dwelling is taken as a basis. In any event, the insurance amount of a dwelling with Compulsory Earthquake Insurance may not exceed the maximum guarantee amount specified in the "Compulsory Earthquake Insurance Tariff and Instruction".
A.5- Excess Insurance Amount
If the insurance amount exceeds the reconstruction cost of the insured dwelling, the portion of the insurance exceeding this cost is invalid. Any institution which becomes aware of this situation during the insurance period is required to reduce the insurance amount and refund the excess premium received for the current year to the policyholder on a daily basis.
A “deductible exemption” at a rate of 2% of the insurance amount is applied for each claim. The TCIP is responsible for the portion of the claim exceeding the exemption amount found in this way. For the purposes of exemption, all damages that occur in each 72 hour period are considered one (1) damage.
A.7- The Beginning and End of the Insurance policy
The term of this insurance contract is one year. Unless otherwise agreed, the insurance policy is effective from 12:00 noon in Turkey on the day specified as the starting date in the policy and ends at 12:00 noon on the day specified as the end date in the policy.