Property Buying Procedure in Turkey

Compulsory Earthquake Insurance DASK is a new insurance system which was created to is ensure the compensation of material damage to dwellings caused by earthquakes.

Following Comprehensive research, the World Bank helped the Turkish Government develop the Turkish Catastrophe Insurance Pool (TCIP) to limit the financial burden earthquakes place on the government budget, focus government relief funds on low income residents, and access international reinsurance capacity in a cost effective manner.

The main objectives of the TCIP are to:

• Ensure that all property tax-paying dwellings have affordable earthquake insurance cover;
• Reduce citizens’ dependence on the government to fund the reconstruction of private property after a devastating earthquake;
• Reduce government’s fiscal exposure to earthquakes by transferring excess catastrophe risk to the international reinsurance markets;
• Encourage physical risk mitigation and safer construction practices.

The TCIP is a legal public entity that provides compulsory property earthquake insurance for owners of private dwellings built legally on registered land. Premium rates are actuarially sound, not subsidized, and vary with construction type and property location. Covered risks include earthquakes and fire.

The catastrophe risk financing strategy of the TCIP relies on both risk retention and reinsurance. The TCIP retains the first US$80 million of losses through its reserves (initially complemented by a US$100 million World Bank contingent loan facility) and transfers excess losses to the international reinsurance markets. The Turkish Government covers losses that would exceed the overall claims paying capacity of the TCIP, which is currently sufficient to withstand a 1-in-350 year earthquake. Economies of scale are obtained through country-wide pooling of the risk, which results in more affordable premium rates.

In order for us to arrange the TCIP on your behalf we require the following: 

• Copy of the Tapu (title deeds)
• Passport numbers of all persons named on Land
• Turkish tax reference numbers for those named on the DEED
• The square meterage of the property 
• The address of the property
• Electricity and water bills are calculated by meter-readings.

• Current tariffs for electricity and water:

  Electricity: the cost of electricity ranges from 0.05 to 0.15 Euro per KW/h (depending on time of day).

  Water supply: the cost of water  ranges from 0.3 to 1.5 Euro/cubic metre

  Our team will take you personally to the registration office and help you with the application process.