While the effects of the earthquake disaster in Turkey continued, question marks about TCIP and housing insurance increased. TCIP and housing insurance are among the main measures to be taken against material damages that may occur as a result of a disaster. Drawing attention to the importance of taking out TCIP and housing insurance, Sigortam.net brought together the tricks that those who want to secure their homes should pay attention to so that they can choose the policy that suits them.

Turkey’s first and leading digital insurance platform, Sigortam.net, draws attention to insurance products that should be owned especially in case of disasters, with the aim of raising insurance awareness in the society and making complex insurance products more understandable and accessible.

With the earthquake disaster that shook all of Turkey, one of the issues that came to the agenda was insurance rates. Studies indicate that TCIP penetration is very low, although it is mandatory. Accordingly, only 55.4% of 20 million 32 thousand houses in Turkey have Compulsory Earthquake Insurance. In home insurance, the rates are much lower. However, in case of disasters, it is important to have a home insurance policy for complete financial protection that both covers the value of the house at a higher rate and secures the belongings inside the house.

Sigortam.net CEO Bora Uludüz, in his assessment on the subject, said, “We have all experienced the pain of the earthquake disaster deeply and we continue to do so. On the one hand, while trying to heal the wounds of this earthquake, on the other hand, it should not be forgotten to take precautions against possible disasters that may occur in the future. The World Bank predicts that the direct physical damage from the earthquake will be 34.2 billion dollars. Calculations show that the total TCIP guarantee for the houses damaged in the earthquake is 25 billion liras.

The increase in the insurance rate allows the impact of disasters on the national economy to be shared with abroad.

Uludüz, “The most important aspect of providing insurance is to ensure that the financial burden is shared with abroad through reinsurance in case of risks. Due to low insurance rates, we have to cover all the financial losses of disasters through our national economy. At the individual level, while we obtain a limited assurance with TCIP, we can obtain a more comprehensive assurance with housing insurance, which is closer to actually covering the financial loss we have experienced. Therefore, as Sigortam.net, we attach great importance to the establishment of insurance awareness both in our customers and in the society in general.”

DASK only protects the building, and housing insurance protects both the house and the belongings.

Uludüz, who underlined that TCIP only provides assurance against material damages in the building due to earthquakes and natural disasters such as flood and fire, while housing insurance offers a much broader assurance opportunity that covers both the house and all the items in it. “DASK provides security up to a certain amount, and it is necessary to have housing insurance in order to secure the real value of the house. In other words, it is possible to reach much higher collaterals than the TCIP coverage determined per square meter with the housing insurance, thanks to the housing insurance. Housing insurance policies, which are very affordable when compared to the price of the house, also cover the negativities such as theft, electricity and plumbing problems that may occur in daily life.

TCIP policy must be up-to-date, tenants must have housing insurance

“It should not be forgotten that TCIP, which is a compulsory insurance product, must be renewed every year. Everyone who owns a house should make sure that the TCIP policy is up-to-date, and if it’s time to renew it, they should not skip renewing it. When we look at the TCIP renewal rates at the moment, unfortunately, we see that it is around 30%. The currency of TCIP policies can be easily checked from the brokerage house or e-government. In addition, it is of great importance for the tenants to check whether there is TCIP, which must be made by the landlord, in the house where they live.” Uludüz, emphasizing the up-to-dateness of TCIP by saying, “Being a tenant or a home owner in the house to be insured is an important factor in terms of the scope of the guarantees. While it is necessary for landlords to take both building and property coverage, tenants also need to create a policy to secure their belongings. For this reason, it is important for tenants who want to protect their own belongings to have housing insurance.”

The content of TCIP is standard, but the scope of home insurance should be well studied.

In housing insurance, different companies can offer options in different scopes. The following points should be considered when purchasing a policy in order to provide the necessary coverage:

In case of any damage or loss, it is necessary to pay attention to following the current valuations in square meter unit prices in order to guarantee that the loss will be covered.
When homeowners have TCIP and housing insurance, they can benefit from the rental income tax deduction, provided that it is within certain limits.
Home insurance covers the damages that will occur after the policy is created.
Housing insurance can also provide coverage for some technological devices in the house that are covered by the policy. However, it is necessary to pay attention to the age of the device in the creation of these guarantees.
Payments such as damage to property, non-pecuniary damage, loss of rent, relocation assistance in disaster situations vary according to insurance companies, but are covered by housing insurance.
Housing insurance policy prices may vary according to the region and province where the building is located.

Source: (BYZHA) – Beyaz News Agency