Compulsory Earthquake Insurance (ZDS) Definition and Scope
In general terms, Compulsory Earthquake Insurance is an insurance system developed to cover the material losses caused by earthquakes for dwellings within the boundaries of a municipality.
The Compulsory Earthquake Insurance is not a type of tax. It is an insurance product that provides coverage for the damage caused by an earthquake.
The duration of the Compulsory Earthquake Insurance is one year. The insurance contract must be renewed every year before the expiry date of the policy.
Buildings which are used entirely for commercial or industrial purposes are not covered by Compulsory Earthquake Insurance, pursuant to Article A-2 – The Buildings Excluded from the Insurance Coverage of the General Conditions of the Compulsory Earthquake Insurance. However, Compulsory Earthquake Insurance is required for the independent sections located in residential buildings (apartments) and used for commercial, retail, office or similar purposes.
Concepts Related to Land Deed
Insurance Policy Arrangement
The authority to issue Compulsory Earthquake Insurance on behalf and the account of the TCIP is defined by a contract signed between the TCIP and the insurance company. The current list of Authorized Insurance Companies can be viewed on the dask.gov.tr website.
The Compulsory Earthquake Insurance may not be held by a tenant on their own behalf. The Tenant may hold Compulsory Earthquake Insurance issued on behalf of the landlord, as the "Insured". In all cases, compensation is paid to the person designated as the Beneficiary in the title deed.
Heavily Damaged Buildings: These buildings must be demolished for safety reasons. Therefore, they cannot be insured until their reconstruction.
Moderately Damaged Buildings: Insuring these buildings bears the obligation of repairing and/or retrofitting of buildings. It is possible to insure these buildings provided that the fulfilment of these processes is documented and presented.
Lightly Damaged - Buildings without Damage: The insurance of these buildings is based on the statement of the insured party and the issuance of the policy is carried out accordingly.
Amount of Insurance Policy
The plot price of the dwelling is not included in the insurance amount. Even if the dwelling is completely destroyed in an earthquake, the plot value is not taken into account since the insured's share of the plot on the "plot" will remain. In the calculation of the insurance compensation, the new construction cost of the building based on the market values is taken as a basis at the place and date of the risk that occurred.
Premium of Insurance Policy
The information can be obtained from the dask.gov.tr , the companies and/or affiliated agencies authorized to the issue Compulsory Earthquake Insurance policies or the ALO DASK Call Center number 125.
In the event of a damage occurrence, payment (compensation) is made if the necessary conditions are met. The validity of one (1) policy is not limited to one (1) claim. If the repair is carried out after the claim payment is received, the pay-out for the next damage could be paid as a result of the inspection of the repaired places by the loss adjuster. These earthquakes may occur in the same policy duration or in successive policy durations. However, where the building has been heavily damaged (reduced to rubble) in any earthquake and the entire insurance amount is paid as compensation, the coverage of the policy would end.
Additions and Cancellations to Insurance Policies
It would then be necessary to apply to the authorized agency where the policy has been issued. If information other than the province, district, town or neighborhood on the policy is incomplete or incorrect, corrections can be made.
Compulsory Earthquake Insurance is a compulsory policy and cannot be cancelled. It can only be cancelled in case of duplication and the elimination of risk pursuant to Article C2 Declaration Obligation of the Insured and Cancellations of General Conditions.