DASK, Turkey's Natural Disaster Insurance Institution, is crucial in safeguarding properties against earthquake-related damages. For foreign investors and homeowners in Turkey, comprehending and leveraging DASK insurance is essential. This article delves into the latest tariffs, premiums, and steps to secure your property in Turkey.
The Official Gazette of Turkey, in its update on DASK insurance, states: “With the amendment in the Communiqué published in Issue 31662 of the Official Gazette dated 28 December 2023, [there are changes in the] compulsory earthquake insurance tariff and instruction, effective from 01 January 2024." This amendment signifies the government's commitment to adapting and updating the insurance policies per current needs and risks.
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Why DASK is Essential for Foreign Investors
In a region prone to seismic activities, DASK insurance is a protective shield for property investments. It provides a layer of security, with clearly defined tariffs and premiums, making financial planning for property investment predictable.
Foreign investors in Turkey must consider DASK insurance for several reasons:
- Legal Compliance: DASK insurance is a legal requirement for all property owners in Turkey.
- Risk Mitigation: Turkey is a seismic region, making earthquake insurance vital for protecting investments.
- Financial Security: DASK provides financial reassurance against unforeseen natural disasters, which is crucial for safeguarding investments.
DASK provides financial reassurance against unforeseen natural disasters, which is crucial for safeguarding investments.
The 9-Step Assurance of DASK
DASK insurance is not just about financial coverage; it's a comprehensive process that ensures peace of mind. The 9-step program encapsulates everything from state assurance against earthquakes to easy policy acquisition, affordability, and swift damage recovery. Homeowners can benefit from discounts, especially on policy renewal, and enjoy the convenience of quick damage assessment and compensation.
The 9 Steps of DASK Insurance:
- State Assurance: DASK is a state-backed guarantee against earthquake damages.
- Ease of Acquisition: Insurance can be obtained easily at insurance agencies or bank branches.
- Premium Affordability: Premiums are calculated to be affordable, considering the building's characteristics and location.
- Renewal Discounts: Policyholders benefit from discounts upon annual renewal.
- Claim Process: In case of damage, policyholders contact ALO DASK 125 Call Center.
- Rapid Damage Assessment: Quick on-site damage assessment by TCIP Loss Adjusters.
- Swift Compensation Payment: Compensation is sent to the nearest bank branch for the beneficiary.
- Rapid Recovery Support: The insurance supports quick recovery post-earthquake.
- Continued Protection: Ensures ongoing security for your property and loved ones.
DASK Insurance Tariff Structure
The tariff for DASK insurance is determined by several factors: building type, risk group, and insurance amount. Specifically, the premium calculation varies for two main building categories: reinforced concrete and other structures.
- Reinforced Concrete Buildings: These buildings benefit from lower tariff rates, ranging from 0.60‰ to 2.33‰ across seven risk groups. This sliding scale reflects varying earthquake risks.
- Other Building Types: Structures outside the reinforced concrete category face higher rates, spanning from 0.90‰ to 4.10‰, indicating increased vulnerability to earthquake damage.
Detailed Tariff Structure in Table Format
The tariffs for DASK insurance are based on building type and risk group. Below is a summarized table: (Desktop for best view)
| Building Type | Risk Group I | Risk Group II | Risk Group III | Risk Group IV | Risk Group V | Risk Group VI | Risk Group VII |
|---|---|---|---|---|---|---|---|
| Reinforced Concrete | 2.33‰ | 2.07‰ | 1.76‰ | 1.65‰ | 1.24‰ | 0.88‰ | 0.60‰ |
| Other | 4.10‰ | 3.51‰ | 3.08‰ | 2.88‰ | 2.31‰ | 1.54‰ | 0.90‰ |
Minimum Premiums and Discounts
DASK insurance sets minimum premium amounts for each risk group, ensuring baseline coverage. Moreover, the policy incorporates discounts and surcharges based on the construction year and number of floors. For example, buildings built before 2000 attract a 10% tariff increase, while structures with three or fewer floors enjoy a 10% discount. Structures with 8 or more are increased by 10%. Ground and basements are not included in the calculation of the number of floors. Additionally, policyholders who renew their policies within 30 days enjoy a 20% discount on the renewed policy.
Maximum Guarantee Amount and Insurance Calculation
The maximum guarantee amount under DASK is TL 1.272.000 for all building types. The insurance amount, crucial for premium calculation, is derived from the property's square meter price and gross area. Reinforced concrete buildings use a square meter price of TL 6,000, while other types use TL 4,000.
DASK Insurance Premiums for a 100m² Dwelling
The table below shows the premiums for a 100m² dwelling across different risk zones and building types: (Desktop for best view)
| Building Type | Risk Zone I | Risk Zone II | Risk Zone III | Risk Zone IV | Risk Zone V | Risk Zone VI | Risk Zone VII |
|---|---|---|---|---|---|---|---|
| Reinforced Concrete | TL 1,398 | TL 1,242 | TL 1,056 | TL 990 | TL 744 | TL 528 | TL 360 |
| Other | TL 1,640 | TL 1,404 | TL 1,232 | TL 1,152 | TL 924 | TL 616 | TL 360 |
This table demonstrates the premiums calculated for a 100m² dwelling, categorized by the type of building (reinforced concrete or other) and by risk zone (I to VII). The premiums are a direct multiplication of the unit square meter cost (TL 6,000 for reinforced concrete and TL 4,000 for other types) by the dwelling's area and the corresponding tariff rate for each risk zone.
Understanding the Price Increase in DASK Insurance
As noted in the Official Gazette, the recent amendment in the DASK insurance tariffs aligns with the government's efforts to ensure that insurance coverage keeps pace with Turkey's evolving economic and structural conditions. Several key factors contribute to this price adjustment:
- Inflation and Economic Factors: The general economic climate, including inflation rates, affects the cost of construction and rebuilding, necessitating adjustments in insurance premiums to maintain adequate coverage levels.
- Risk Assessment Updates: Periodic reassessment of seismic risks and the incorporation of new data can lead to changes in risk group classifications, impacting the tariff rates for different regions.
- Enhanced Coverage Needs: As construction technologies evolve and property values increase, insurance coverage needs to be updated to ensure that it remains sufficient to cover potential damages fully.
This price increase reflects a proactive approach to ensuring that DASK insurance remains a robust and reliable safety net for property owners in Turkey, especially in light of the country's seismic risk profile.
The February 6, 2023 earthquakes in Turkey, causing over US$20 billion in economic losses and over US$1 billion in insured losses, underscore the critical need for comprehensive insurance in the face of natural disasters.
Conclusion
DASK insurance is an indispensable tool for anyone owning property in Turkey. It offers comprehensive protection against earthquakes and related disasters, ensuring your investment remains secure. With the support of Ikamet Sigorta, navigating the intricacies of DASK insurance becomes straightforward, allowing you to focus on the joys of owning property in Turkey.
About Ikamet Sigorta
Ikamet Sigorta, a trusted insurance agency in Turkey, specializes in DASK insurance, providing expert guidance and personalized solutions. Visit Ikamet Sigorta for more information.
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