What should foreign property owners do when earthquake insurance does not cover the full loss in Turkey? Learn about compulsory earthquake insurance limits, additional private insurance, underpaid claims, reconstruction costs, contents, lost rent and compensation options.

A foreign property owner may discover after an earthquake that the actual financial loss is substantially higher than the amount payable under compulsory earthquake insurance.

This does not necessarily mean that the remaining loss must simply be accepted.

The first step is to identify why there is a compensation gap.

The difference may arise because:

• The rebuilding cost exceeds the compulsory insurance amount;
• Certain losses fall outside compulsory coverage;
• The owner has additional private insurance;
• The insurer has underestimated covered damage;
• Part of the damage is disputed as pre-existing;
• Contents or furniture were damaged;
• Rental income was lost;
• Temporary accommodation costs arose;
• Construction defects contributed to the loss;
• Another person may be legally responsible for part of the damage.

Under the compulsory earthquake insurance system, direct material earthquake damage to the insured building is compensated only within the insured amount stated in the policy.

Accordingly, foreign owners should calculate the entire loss rather than treating the compulsory earthquake payment as the final measure of their legal rights.

Why Can the Actual Earthquake Loss Exceed the Insurance Payment?

Compulsory earthquake insurance is not designed to compensate every economic consequence of an earthquake.

The current framework covers qualifying direct physical building damage within the policy amount.

It does not automatically compensate every cost associated with losing the use or value of a property.

This distinction is particularly important for foreign investors who own high-value apartments, villas or investment properties.

1. Determine the Total Earthquake Loss

Prepare a complete loss schedule.

Separate:

• Structural building damage;
• Reconstruction costs;
• Repair costs;
• Furniture and contents;
• Temporary accommodation;
• Lost rental income;
• Business interruption;
• Debris removal;
• Professional fees;
• Other consequential losses.

Do not compare the insurance payment only with the contractor’s repair quotation.

First identify the legal category of each loss.

2. Check the Compulsory Earthquake Insurance Amount

The compulsory earthquake insurance amount is calculated according to the applicable tariff methodology rather than simply according to the property’s market sale value.

The general conditions provide that the insurance amount is calculated using the prescribed square-meter amount for the relevant construction type multiplied by the gross or approximate gross area of the dwelling, subject to the applicable maximum coverage.

Therefore:

Property market value ≠ compulsory earthquake insurance amount

and

compulsory earthquake insurance amount ≠ every possible earthquake loss.

3. The Market Value of the Property Is Not the Correct Comparison

Suppose:

Apartment market value: TRY 20 million

Earthquake damage: TRY 5 million

The fact that the apartment was worth TRY 20 million before the earthquake does not mean compulsory earthquake insurance must pay TRY 20 million.

Land value and market premiums are fundamentally different from insured reconstruction-related building damage.

The policy should therefore be analyzed according to its actual insurance amount and covered physical damage.

4. Reconstruction Costs Can Exceed the Compulsory Insurance Amount

This is one of the most important issues for foreign property owners.

The current 2026 tariff expressly recognizes that the rebuilding value of a property may exceed the amount calculated under compulsory earthquake insurance. Where this occurs, private insurers may provide voluntary earthquake insurance for the portion exceeding the compulsory amount, provided compulsory earthquake insurance is in place.

This means foreign owners should immediately ask:

Was there additional private earthquake coverage?

5. Check Every Private Insurance Policy

Do not review only the compulsory policy.

Search for:

• Home insurance;
• Property insurance;
• Comprehensive property policy;
• Commercial property insurance;
• Earthquake extension;
• Contents insurance;
• Rental-loss coverage;
• Business interruption insurance.

Foreign investors sometimes have broader coverage without realizing that a second policy may respond to part of the same event.

6. Additional Earthquake Insurance Can Cover the Excess

The 2026 compulsory earthquake tariff specifically permits voluntary earthquake insurance for the part of the rebuilding value exceeding the compulsory insurance amount.

For example:

Actual qualifying rebuilding value: TRY 8 million

Compulsory insurance amount: TRY 4 million

A properly structured additional private earthquake policy may potentially address the excess portion according to its own limits, deductibles and conditions.

The actual policies must be reviewed together.

7. Do Not Submit the Same Loss Incorrectly

Where two policies exist, the claim should be coordinated properly.

Prepare:

Compulsory policy → covered structural loss

Additional private policy → excess building loss and other covered categories

This avoids confusion over which insurer is responsible for which part of the damage.

8. Furniture Is Not Covered by Compulsory Earthquake Insurance

Compulsory earthquake insurance excludes movable property and contents.

This may include:

• Furniture;
• Televisions;
• Computers;
• Appliances;
• Personal belongings;
• Other movable items.

However, these items may potentially be covered under a separate private home insurance policy.

9. Prepare a Contents Inventory

Foreign owners should document damaged contents individually.

For each significant item, record:

• Description;
• Purchase date;
• Approximate value;
• Photograph;
• Invoice where available;
• Damage.

Avoid submitting only a statement such as:

“All furniture was destroyed.”

A detailed inventory creates a stronger claim.

10. Lost Rental Income Is Not Covered by Compulsory Earthquake Insurance

This can be particularly significant for foreign property investors.

The compulsory system expressly excludes deprivation of rental income.

For example:

Monthly rent: TRY 70,000

Property unusable: 10 months

Potential rental loss: TRY 700,000

That amount does not automatically become payable under compulsory earthquake insurance.

A private policy should be checked for rental-loss protection.

11. Temporary Accommodation Is Also Excluded

Compulsory earthquake insurance does not cover alternative accommodation expenses.

Foreign owners who had to rent another apartment should preserve:

• Temporary lease;
• Hotel invoices;
• Payment receipts.

These costs may be relevant under another policy or another legal claim even though they fall outside compulsory coverage.

12. Debris Removal Is Excluded

Debris removal costs are also outside compulsory earthquake insurance coverage.

Again, check any additional private insurance.

13. Business Interruption Is Not Covered

If the property was used for business purposes, interruption losses can become substantial.

Compulsory earthquake insurance expressly excludes business interruption and loss of profit.

Commercial property owners should examine whether they purchased separate business interruption insurance.

14. The Insurance Gap May Actually Be an Underpayment Dispute

Not every difference between the actual loss and the payment results from a coverage limitation.

Sometimes the dispute concerns valuation.

For example:

Owner’s repair estimate: TRY 3.5 million

Insurer’s assessed covered damage: TRY 1.8 million

Before concluding that the remaining TRY 1.7 million is uninsured, determine why the assessments differ.

15. Obtain the Damage Assessment

Request the detailed basis of the calculation.

Review:

• Damaged components;
• Measurements;
• Damage percentages;
• Building characteristics;
• Excluded items;
• Deductible;
• Insurance amount.

A payment figure without understanding its calculation should not automatically be accepted as correct.

16. Compulsory Earthquake Insurance Has a Deductible

The general conditions provide for a deductible equal to 2% of the insurance amount for each loss, with the institution responsible for the portion exceeding that deductible. Damage occurring within each 72-hour period is treated as one loss for deductible purposes.

Foreign owners should therefore distinguish a legitimate contractual deductible from an incorrect underpayment.

17. Obtain Independent Technical Evidence

If the damage assessment appears incomplete, consider obtaining independent technical evidence.

Depending on the dispute, this may include:

• Structural engineering report;
• Civil engineering assessment;
• Architect’s report;
• Detailed repair estimate;
• Photographic survey.

The report should identify earthquake-related damage rather than merely state a total repair cost.

18. Distinguish Earthquake Damage From Pre-Existing Damage

Compulsory earthquake insurance excludes damage that developed over time because of the building’s own defects and was unrelated to a specific earthquake event.

Accordingly, an insurer may argue:

“These cracks existed before the earthquake.”

The owner may need evidence showing:

Pre-earthquake condition → earthquake → newly appearing or aggravated damage

Useful evidence can include older photographs, property inspections and engineering reports.

19. Earthquake Aggravation Should Be Investigated Carefully

A building may already have had a minor defect before the earthquake.

That does not necessarily mean every later manifestation is unrelated to the earthquake.

Technical evidence may be required to distinguish:

• Old damage;
• New earthquake damage;
• Earthquake-aggravated damage.

20. Preserve Evidence Before Repairs

Where safety permits, thoroughly document the property before major repair work begins.

Take:

• Wide-angle photographs;
• Close-up photographs;
• Videos;
• Room-by-room records;
• Structural damage photographs.

Safety-related emergency work should not be delayed merely for evidence purposes.

21. Keep Every Repair Quotation

Obtain detailed quotations rather than a single total.

A useful quotation separates:

• Structural work;
• Walls;
• Flooring;
• Roof;
• Electrical systems;
• Plumbing;
• Finishing work.

This helps distinguish insured structural damage from other expenses.

22. Do Not Confuse Policy Limit With Incorrect Damage Assessment

These are separate disputes.

Scenario A: Correct damage assessment is TRY 5 million, but applicable insurance coverage is limited below the full loss.

Scenario B: Coverage would be sufficient, but insurer incorrectly assesses damage at TRY 2 million.

Scenario A requires investigation of additional insurance and other recovery sources.

Scenario B may require challenging the assessment.

23. Check Whether the Policy Information Is Correct

Review:

• Gross area;
• Construction type;
• Property address;
• Policyholder information.

Incorrect information can affect the claim calculation.

Any discrepancy should be investigated before settlement.

24. What If the Building Is a Total Loss?

Even where a building is completely destroyed, compulsory earthquake compensation remains subject to the policy’s insured amount and applicable conditions.

The official framework covers both completely and partially damaged buildings within the insurance limits.

Total destruction does not automatically convert the policy into unlimited replacement-cost insurance.

25. What If the Reconstruction Cost Has Increased Dramatically?

Post-earthquake construction costs may rise because of:

• Labour shortages;
• Material shortages;
• Inflation;
• Increased demand;
• Transport costs.

The policy wording and applicable insurance amount should be examined carefully.

The existence of a higher real-world reconstruction bill does not by itself rewrite the compulsory policy limit.

26. Check Whether Another Person May Be Responsible

Insurance is not necessarily the only possible source of recovery.

Serious earthquake damage may reveal:

• Construction defects;
• Structural defects;
• Unauthorized alterations;
• Defective engineering;
• Non-compliant construction.

Potential liability claims against responsible parties should be investigated separately from the insurance claim.

27. What If the Contractor Used Defective Materials?

Preserve evidence before reconstruction destroys it.

Potential evidence includes:

• Concrete testing;
• Structural reports;
• Construction records;
• Approved plans;
• Photographs;
• Expert findings.

Do not assume that insurance compensation eliminates every possible claim against responsible parties.

28. What If Unauthorized Alterations Weakened the Building?

This requires particular caution.

The compulsory earthquake insurance framework excludes certain buildings that were modified or weakened in a way adversely affecting structural integrity.

The circumstances of the alteration, causation and responsibility therefore require careful technical and legal analysis.

29. The Owner May Not Be Responsible for the Alteration

For example, structural changes may have been made by:

• Developer;
• Previous owner;
• Another apartment owner;
• Commercial tenant;
• Building management.

The foreign owner should investigate when and by whom the alteration was made.

30. Check Common-Area Damage

Earthquake damage frequently affects common areas such as:

• Foundations;
• Roof;
• Stairs;
• Elevators;
• Common walls;
• Corridors.

These types of structural and complementary building components fall within the categories recognized by compulsory earthquake coverage.

The individual owner’s claim should therefore be coordinated with the overall building damage.

31. Foreign Owners Should Obtain Building-Level Documents

Request where available:

• Official damage determination;
• Building management records;
• Engineering reports;
• Structural assessments;
• Repair decisions.

Apartment-level cosmetic damage may not reveal the true extent of building-level structural damage.

32. What If the Insurer Pays Only Part of the Claim?

Do not immediately sign a broad release.

First determine:

• What amount was accepted;
• Which damage was rejected;
• Whether payment is interim or final;
• Whether acceptance waives additional claims.

Settlement wording matters.

33. Request the Reason for Every Deduction

Create a table:

Claimed Loss	Amount	Paid	Difference	Reason
Structural repairs	TRY 3M	TRY 2M	TRY 1M	Disputed assessment
Furniture	TRY 400K	0	TRY 400K	Outside compulsory coverage
Lost rent	TRY 600K	0	TRY 600K	Outside compulsory coverage
Temporary housing	TRY 250K	0	TRY 250K	Outside compulsory coverage

This immediately shows which losses should be challenged and which require another recovery source.

34. Review the Private Insurer’s Policy Separately

Private policies may contain their own:

• Limits;
• Deductibles;
• Exclusions;
• Sub-limits;
• Notification requirements;
• Valuation rules.

Do not assume that private earthquake insurance automatically pays every amount left unpaid by compulsory insurance.

35. Commercial Properties Require Different Planning

Buildings used entirely for commercial or industrial purposes are outside the compulsory earthquake insurance scheme.

Foreign owners of:

• Factories;
• Warehouses;
• Hotels;
• Industrial premises;
• Standalone commercial buildings;

should therefore focus primarily on their private commercial insurance arrangements.

36. A Shop Inside a Residential Building May Be Different

Independent units used as shops, offices or similar purposes inside buildings constructed as residences can fall within the compulsory framework.

The legal and physical character of the building therefore matters.

37. Foreign Owners Should Not Accept “Not Covered” Without Explanation

Ask:

Which policy clause excludes it?

Is the insurer saying the event is excluded or only part of the damage?

Is the dispute about causation, valuation or the policy limit?

These are fundamentally different issues.

38. Keep a Complete Claim File

The file should contain:

• Policy;
• Title information;
• Claim notification;
• Damage photographs;
• Expert assessment;
• Independent reports;
• Repair quotations;
• Insurer correspondence;
• Payment calculation;
• Bank payment evidence.

This file becomes essential if the compensation amount is later disputed.

39. Create a Claim Chronology

For example:

Day 1: Earthquake.

Day 2: Damage photographed.

Day 3: Claim reported.

Day 10: Expert inspection.

Day 25: Additional documents submitted.

Day 40: Payment offered.

Day 45: Written objection submitted.

A clear chronology helps identify procedural delay and missing steps.

40. Do Not Repair Away the Evidence

Emergency stabilization is different from complete reconstruction.

Where reasonably possible, document the damage before:

• Demolition;
• Structural repair;
• Replacement;
• Disposal of damaged materials.

Evidence may become crucial if causation or extent of damage is later disputed.

41. Can Foreign Owners Challenge an Underpaid Claim?

Potentially, yes.

A claim may require challenge where the disagreement concerns:

• Damage extent;
• Causation;
• Incorrect property information;
• Misapplication of policy provisions;
• Incomplete expert assessment.

The correct dispute route depends on the policy and insurer involved.

42. Do Not Miss Limitation or Procedural Deadlines

Insurance disputes are time-sensitive.

Do not spend months negotiating informally while assuming that all legal deadlines have stopped.

The applicable policy, claim type and legal route should be reviewed promptly.

43. What If the Owner Lives Abroad?

Foreign residence should not prevent the owner from organizing a claim.

However, practical issues should be addressed early, including:

• Representation;
• Access to property;
• Engineering inspection;
• Document collection;
• Communication with insurers.

The owner should maintain a complete electronic copy of the claim file.

44. Do Not Sell the Damaged Property Before Understanding the Claim

Selling immediately may complicate:

• Evidence;
• Insurance rights;
• Valuation;
• Claims against responsible parties.

Before selling, determine how the transaction may affect outstanding insurance and compensation rights.

45. Future Protection Is Equally Important

After resolving the existing claim, foreign property owners should review whether future coverage is sufficient.

The 2026 tariff expressly contemplates additional voluntary earthquake insurance where rebuilding value exceeds compulsory coverage.

A future insurance program may therefore combine:

Compulsory earthquake insurance + additional building coverage + contents + rental-loss protection

depending on the property and owner’s needs.

First 48-Hour Action Plan for an Insurance Shortfall

If earthquake insurance does not cover the full loss, a foreign property owner should:

1. Obtain the complete compulsory earthquake policy.
2. Obtain every additional private insurance policy.
3. Request the detailed damage assessment.
4. Identify the compulsory policy limit.
5. Calculate the total physical loss.
6. Separate structural damage from contents.
7. Calculate lost rent separately.
8. Calculate temporary accommodation expenses separately.
9. Preserve photographs and videos.
10. Obtain detailed repair quotations.
11. Consider independent engineering evidence.
12. Determine whether damage is being classified as pre-existing.
13. Identify any additional earthquake coverage.
14. Investigate possible construction defects.
15. Preserve evidence concerning responsible contractors or other parties.
16. Review any proposed settlement before signing.
17. Challenge unsupported underpayment where appropriate.

Frequently Asked Questions

1. Does compulsory earthquake insurance have to cover the entire reconstruction cost?

Not necessarily. Compensation is subject to the insurance amount and applicable policy conditions. The 2026 tariff expressly recognizes that rebuilding value may exceed the compulsory insurance amount.

2. Can a foreign owner buy additional earthquake insurance?

Yes. Where rebuilding value exceeds the compulsory insurance amount, the current tariff allows private insurers to provide voluntary earthquake coverage for the excess, provided compulsory earthquake insurance has been obtained.

3. Can furniture damage be claimed from compulsory earthquake insurance?

No. Movable property and contents are excluded. A private home insurance policy should be checked.

4. Can lost rental income be claimed?

Not under compulsory earthquake insurance. Rental deprivation is expressly excluded, although a separate private policy may potentially provide relevant coverage.

5. Does compulsory earthquake insurance pay temporary accommodation costs?

No. Alternative accommodation expenses are outside compulsory coverage.

6. What if the insurer underestimated the earthquake damage?

The owner should obtain the damage calculation, preserve technical evidence and consider an independent engineering assessment before accepting the payment as final.

7. Is there a deductible?

Yes. The compulsory earthquake insurance general conditions provide for a deductible equal to 2% of the insurance amount for each qualifying loss.

8. Can the owner claim against a contractor if defective construction increased the damage?

Potentially, depending on the evidence, causation, applicable legal rules and circumstances of the construction. Such liability should be investigated separately from the insurance claim.

9. Can a foreign owner pursue both compulsory and private insurance?

Potentially, yes, according to the respective policies and the allocation of covered losses. The same loss should not simply be duplicated, but additional private coverage may respond where compulsory coverage is insufficient.

10. What is the most important step when the insurance payment is too low?

Identify why the loss is unpaid. A policy-limit shortfall, excluded furniture loss, lost rent and an incorrectly assessed structural claim require completely different recovery strategies.

Client-Focused Legal Support for Underpaid Earthquake Claims in Turkey

When earthquake insurance does not cover the entire loss, foreign property owners should not treat the difference as one single “uninsured amount.”

The shortfall should be divided into categories.

Some losses may be genuinely outside compulsory earthquake insurance, including contents, rental deprivation, alternative accommodation and other indirect losses.

Other losses may be recoverable under additional private earthquake or property insurance. The current 2026 tariff expressly recognizes voluntary earthquake coverage for rebuilding value exceeding compulsory insurance coverage.

Still other amounts may represent a disputed underpayment rather than a true coverage gap.

A strong recovery strategy therefore combines policy analysis, engineering evidence, reconstruction-cost review, examination of additional private insurance, classification of uninsured losses and investigation of third-party liability where construction defects contributed to the damage.

Fırat Fesih Kaya Law Office assists foreign property owners, international investors and foreign companies with earthquake insurance shortfalls, rejected claims, underpaid compensation, private property insurance disputes and construction-related losses in Turkey.

Lawyer Fırat Fesih Kaya provides legal assistance in reviewing insurance policies, challenging disputed damage calculations, coordinating compulsory and private insurance claims and evaluating additional compensation options.

Phone: +90 312 434 22 22
Mobile: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Address: Mevlana Boulevard No:221, Yıldırım Tower, Office No:148, 06520 Balgat, Çankaya, Ankara, Turkey

This article is intended for general information and does not constitute legal advice. Insurance recovery depends on the policy in force, applicable insurance amount, type and cause of damage, additional private coverage, exclusions, technical evidence and the specific circumstances of each loss.