Why should I take out TCIP - Compulsory Earthquake Insurance?
Compulsory Earthquake Insurance is a mandatory insurance required for recovering pecuniary loss and damages quickly, to minimise the destructive effect of earthquakes and get on with your life.
Today, it is necessary to have this cover in order to initiate subscriptions for electricity, water etc, to a home.
What information do I need to take out TCIP - Compulsory Earthquake Insurance?
Information such as the name, address, phone number, and taxpayer identification number of the insurer, your taxpayer identification number, address of the building to be insured, information of the title deed (map sheet, block, plot, page no), year of construction and structure, total floor number, damage status, gross surface of the residence, and type of usage are required to take out TCIP - Compulsory Earthquake Insurance.
What does Compulsory Earthquake Insurance cover?
Compulsory Earthquake Insurance is for residential houses, and businesses in residential houses. It provides cover against pecuniary damages to the house, caused by an earthquake. The coverage of this insurance is determined by the Natural Disasters Insurances Authority (TCIP), however the insurance policy can be generated by authorized insurance companies and agencies.
Which buildings does Compulsory Earthquake Insurance cover?
Compulsory Earthquake Insurance is generally an insurance system for residential houses remaining within municipal boundaries.
The buildings described below are covered in accordance to the Catastrophe Insurance Law No. 6305:
- Buildings constructed as residential houses on immovable registered to land office and subject to private properties,
- Independent spaces within the scope of the Turkish Condominium Law No. 634,
- Independent spaces located in these buildings and used for trading house, office, bureau and similar purposes,
- Residential houses constructed by the government, or constructed with credit granted by the government due to natural disasters.
Compulsory Earthquake Insurance is valid for the following buildings, which comply with the above conditions;
- Buildings of which their construction servitude are established,
- Buildings of which their allotment is not assigned yet and their attribution is displayed as “land etc.” at land register book,
- Cooperative housing of which their allotment is not assigned yet.
Which buildings are not covered by Compulsory Earthquake Insurance?
The types of buildings that are outside of the coverage of Compulsory Earthquake Insurance are as follows:
- Buildings and independent spaces subject to Public Housing Law dated 9/11/1983 and numbered 2946, or used as a public service building,
- Buildings registered to village populations and constructed at settlement areas, and in the vicinity of these areas and arable fields,
- The entirety of buildings used for commercial and industrial purposes,
- Buildings that do not have a project and that have not had any engineering services,
- Buildings that are found to have been modified in a way that will affect the carrier system negatively, or weaken the carrier system,
- Buildings constructed in a way that will affect the carrier system negatively, and in contrary to the relevant legislation and project,
- Buildings to be demolished by authorized public institutions, and dilapidated and derelict buildings that are not suitable for using as residential houses.
You can take out Facultative Earthquake Insurance for buildings that cannot be covered by Compulsory Earthquake Insurance.
Village settlements are outside of our coverage, due to the low income levels, lack of municipal building audits, and difficulty in presenting insurance in general. However, it is possible to issue Facultative Earthquake Insurance for buildings located in villages if requested. Similarly, Facultative Earthquake Insurance can be issued for buildings used for commercial and industrial purposes.
Can Compulsory Earthquake Insurance be taken out for buildings under construction?
Buildings that are under construction and yet not completed cannot be insured.
Are workplaces covered by Compulsory Earthquake Insurance?
The entirety of buildings used for commercial or industrial activity are outside of the coverage of Compulsory Earthquake Insurance, in accordance of the article titled ‘Buildings That Are out of the Guarantee Coverage, General Conditions A-2 of Compulsory Earthquake Insurance'. However, Compulsory Earthquake Insurance should be taken out for the independent spaces located inside buildings constructed as residential houses that are used for trading houses, offices, bureaus, or similar.
Which damages are not included in Compulsory Earthquake Insurance coverage?
The following damages are not covered:
- Removal of debris expenses,
- Loss of profits,
- Business interruption,
- Deprivation of rent,
- Alternative residence and workplace costs,
- Financial liabilities and similar other indirect damages that may further be claimed,
- All kinds of movable property, goods and so forth
- All bodily injuries and death,
- Non-pecuniary damage claims,
- Damages outside of fire, explosion, tsunami and landslide damage caused by an earthquake or consequences of an earthquake,
- Damages that have occurred in the course of time due to the defective structure of the building, apart from the earthquake.
Which is covered for the common spaces of buildings?
The following are covered by Compulsory Earthquake Insurance;
- Carrier system,
- Main walls,
- Walls that separate independent spaces,
- Ceilings and floors,
- Stairs, landings, corridors,
- Roofs and chimneys,
Other common areas may benefit from an optional Fire Insurance Policy.
Does Compulsory Earthquake Insurance offer cover for household goods, or for risks like fire?
Compulsory Earthquake Insurance only covers damages that occur in the building as a result of fire, explosion, tsunami or landslides caused by an earthquake, or due to consequence of an earthquake. For household goods, you can benefit from the coverage of an optional housing insurance policy from your insurance company.