How can foreign property owners recover earthquake losses exceeding compulsory insurance in Turkey? Learn about additional private insurance, underpaid claims, contents, lost rent, construction defects and claims against responsible parties.

Foreign property owners in Turkey may suffer earthquake losses that substantially exceed the compensation available under compulsory earthquake insurance.

Receiving the compulsory insurance payment does not necessarily mean that every other compensation possibility has ended.

The correct strategy is to divide the total earthquake loss into separate categories and determine which person or insurance policy may be responsible for each category.

Compulsory earthquake insurance principally covers direct material damage caused to the insured building by an earthquake and specified earthquake-related events, within the applicable insurance limit. It does not cover numerous consequential losses, including lost rent, alternative accommodation, business interruption, movable contents, bodily injury or moral damages.

Accordingly, additional recovery may potentially come from:

• Additional private earthquake insurance;
• Home insurance;
• Contents insurance;
• Rental-loss coverage;
• Commercial property insurance;
• Business interruption insurance;
• A claim concerning an underpaid compulsory insurance benefit;
• Claims against contractors, developers or other legally responsible parties;
• Other applicable insurance or liability arrangements.

1. Start by Calculating the Entire Earthquake Loss

Do not begin with the amount paid under compulsory insurance.

Begin with the actual loss.

Prepare separate calculations for:

• Structural building damage;
• Reconstruction costs;
• Repair costs;
• Contents and furniture;
• Lost rental income;
• Temporary accommodation;
• Debris removal;
• Business interruption;
• Additional operating expenses;
• Other property damage.

Then determine which category may be recoverable from which source.

2. Understand What Compulsory Earthquake Insurance Actually Covers

Compulsory earthquake insurance covers direct material damage caused by earthquakes and earthquake-related fire, explosion, tsunami and landslide to qualifying insured buildings, within the applicable policy limits.

It covers qualifying structural components such as:

• Foundations;
• Main walls;
• Common walls;
• Floors and ceilings;
• Stairs;
• Elevators;
• Corridors;
• Roofs;
• Chimneys.

It can respond to both partial and total building damage.

3. The Compulsory Insurance Amount Is Not the Property’s Market Value

Foreign owners should distinguish three concepts:

Market value of the property

Actual reconstruction or repair loss

Compulsory earthquake insurance amount

They are not necessarily identical.

The compulsory insurance amount is calculated under the applicable tariff methodology using the relevant square-meter amount and the property’s gross or approximate gross area, subject to the applicable maximum insurance amount.

Therefore, owning an apartment worth TRY 20 million does not automatically mean compulsory earthquake insurance provides TRY 20 million of coverage.

4. Additional Private Earthquake Insurance May Cover the Difference

This is one of the first possibilities foreign owners should investigate.

Current official guidance expressly states that where the value of the building exceeds the protection provided by compulsory earthquake insurance, insurance companies may provide additional coverage for the remaining portion through voluntary property insurance, provided the required compulsory insurance is in place.

Therefore, locate every private policy issued for the property.

5. Check the Home Insurance Policy

A private home insurance policy may contain broader protection than compulsory earthquake insurance.

Depending on its wording, it may potentially provide coverage for:

• Building losses exceeding compulsory coverage;
• Contents;
• Furniture;
• Appliances;
• Additional expenses;
• Rental-related losses.

Coverage must be verified from the actual policy rather than assumed.

6. Check Whether an Earthquake Extension Exists

Do not assume that a general home policy automatically covers every earthquake loss.

Review:

• Covered risks;
• Earthquake endorsement;
• Coverage limit;
• Deductible;
• Sub-limits;
• Exclusions.

The private insurer’s responsibility is determined by the policy actually purchased.

7. Furniture and Contents Require Separate Attention

Compulsory earthquake insurance expressly excludes movable property and contents.

This may include:

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

A private contents or home insurance policy should therefore be examined.

8. Prepare a Detailed Contents Inventory

Instead of writing:

“Furniture loss: TRY 500,000”

prepare:

Item → purchase date → original price → approximate current value → damage → supporting photograph or invoice

Photographs, purchase records, invoices and credit-card records may help establish the loss.

9. Lost Rental Income Is a Separate Loss

This can be particularly significant for foreign real estate investors.

Compulsory earthquake insurance expressly excludes rental deprivation.

For example:

Monthly rent: TRY 80,000
Property unusable: 12 months
Potential rental loss: TRY 960,000

This amount does not automatically become payable under compulsory insurance.

However, a private insurance policy may contain relevant rental-loss protection.

10. Preserve Evidence of the Previous Rental Income

Useful evidence may include:

• Lease agreement;
• Bank payments;
• Previous rental receipts;
• Tax records;
• Tenant correspondence.

Actual historical rent is generally more persuasive than a speculative estimate of what the property could have earned.

11. Temporary Accommodation Is Also Outside Compulsory Coverage

Compulsory earthquake insurance excludes alternative accommodation and workplace expenses.

Foreign owners who had to relocate should therefore preserve:

• Hotel invoices;
• Temporary leases;
• Payment receipts;
• Moving expenses where relevant.

Then check whether another insurance policy responds to those costs.

12. Debris Removal Is Not Included in Compulsory Coverage

Debris removal expenses are also excluded from compulsory earthquake insurance.

These expenses can become substantial after serious structural damage.

Any additional private policy should be examined to determine whether such costs are separately insured.

13. Commercial Property Owners Should Check Business Interruption Insurance

A foreign-owned business may suffer losses far exceeding the physical damage to the building.

For example:

Factory repair: TRY 20 million

Business interruption: TRY 35 million

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

Commercial policies should therefore be reviewed for separate business interruption protection.

14. Entirely Commercial or Industrial Buildings Require Particular Attention

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

Foreign investors owning:

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

should focus particularly on their private property insurance arrangements.

15. A Shop Inside a Residential Building May Be Different

The compulsory system can cover independent units used as shops, offices or similar purposes where they are located within qualifying buildings constructed as residences.

The nature of the entire building therefore matters.

16. Additional Compensation May Actually Be an Underpayment Claim

Suppose:

Qualifying earthquake damage: TRY 4 million

Available compulsory coverage: sufficient for that amount

Compensation assessment: TRY 2.3 million

The remaining TRY 1.7 million should not automatically be treated as uninsured.

There may instead be a dispute concerning the damage assessment.

17. Obtain the Complete Damage Calculation

Request and review:

• Accepted damage;
• Rejected damage;
• Measurements;
• Construction classification;
• Policy amount;
• Deductible;
• Calculation methodology.

Identify exactly why the claimed amount and assessed amount differ.

18. Remember the Compulsory Insurance Deductible

The compulsory earthquake insurance general conditions provide for a deductible equal to 2% of the insurance amount for each qualifying loss. Events occurring within each 72-hour period are treated as one loss for this purpose.

A legitimate deductible should therefore be distinguished from an incorrect reduction.

19. Obtain Independent Engineering Evidence

If structural damage has been underestimated, consider an independent technical assessment.

The report may address:

• Cause of damage;
• Structural impact;
• Necessary repairs;
• Earthquake-related aggravation;
• Reconstruction requirements.

Technical evidence is particularly important where causation is disputed.

20. What If the Insurer Says the Damage Was Already There?

Compulsory earthquake insurance excludes deterioration that developed over time because of the building’s own defects rather than a specific earthquake event.

The owner should therefore preserve evidence showing:

Condition before earthquake → earthquake → condition afterward

Useful evidence may include previous photographs, inspection reports and renovation records.

21. Pre-Existing Damage Does Not Necessarily Explain Every New Loss

A building might have had minor defects before the earthquake while suffering substantial additional earthquake damage afterward.

A technical expert may need to distinguish:

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

This distinction can materially affect compensation.

22. Construction Defects May Create a Separate Compensation Route

Suppose the earthquake damage was significantly increased because the building was defectively constructed.

Potentially responsible persons may need to be investigated separately from the insurer.

Depending on the circumstances, this can involve:

• Contractor;
• Developer;
• Technical professionals;
• Other legally responsible persons.

Insurance compensation and third-party liability are separate legal questions.

23. Investigate the Original Construction

Obtain available:

• Building plans;
• Construction documents;
• Occupancy records;
• Structural project;
• Previous technical reports;
• Renovation documents.

These records may become important where the building performed substantially worse than expected during the earthquake.

24. Preserve Physical Evidence of Construction Defects

Before major demolition or reconstruction, preserve evidence where safely possible.

This may include:

• Structural photographs;
• Concrete testing;
• Reinforcement observations;
• Expert reports;
• Official damage findings.

Once the building is demolished, important physical evidence may disappear permanently.

25. What If Unauthorized Structural Changes Increased the Damage?

Investigate:

• Who made the alteration;
• When it occurred;
• Whether approval existed;
• Whether it affected structural integrity.

This issue can also affect compulsory insurance coverage because the official framework excludes certain buildings whose load-bearing systems were adversely altered or weakened.

26. The Current Owner May Not Have Made the Alteration

A foreign buyer may have purchased the apartment years after an unlawful structural modification.

Possible actors could include:

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

Do not assume responsibility before reconstructing the building’s history.

27. Claims Against Other Apartment Owners May Need Investigation

Suppose another owner removed structural components during renovation and this materially increased earthquake damage.

That circumstance may require a separate liability analysis.

Evidence concerning:

• Renovation;
• Structural changes;
• Timing;
• Causation;

should be preserved.

28. Common-Area Damage Can Be Financially Significant

Foreign apartment owners should investigate damage to:

• Foundations;
• Main structural walls;
• Roof;
• Stairs;
• Elevators;
• Corridors.

These structural and complementary components are expressly within the compulsory insurance framework where the applicable conditions are met.

Do not assess the loss solely from the interior of the apartment.

29. Obtain the Building’s Overall Damage File

Request available:

• Official damage assessment;
• Engineering reports;
• Building-management records;
• Repair decisions;
• Contractor estimates.

An individual apartment claim should be evaluated in the context of the entire building.

30. What If Compulsory Insurance Paid Its Maximum?

This does not automatically eliminate every additional claim.

The foreign owner should investigate:

Was there additional private insurance?

Are there uninsured contents?

Was rental income lost?

Are there responsible third parties?

Did defective construction increase the damage?

The compulsory policy limit and total legal loss are not necessarily the same.

31. What If There Was No Additional Private Insurance?

The owner should still investigate whether:

• The compulsory payment was correctly calculated;
• A responsible third party exists;
• Construction defects contributed to the damage;
• Other applicable insurance exists.

But an insurance policy cannot ordinarily be created retrospectively after the earthquake.

32. Do Not Double Recover the Same Loss

Additional compensation does not mean receiving the same financial loss twice.

For example, if one insurer has fully compensated a particular repair item, that exact loss cannot simply be claimed again as though no payment occurred.

Create a recovery table showing:

Loss → responsible source → amount claimed → amount paid → remaining loss

33. Separate Each Defendant and Insurer

A useful claim matrix may look like this:

Loss	Potential Recovery Source
Covered structural earthquake damage	Compulsory insurance
Building loss above compulsory coverage	Additional private insurance
Furniture and contents	Private home/contents insurance
Lost rent	Private policy if covered / possible separate liability claim
Temporary accommodation	Private policy if covered / possible separate claim
Defective construction loss	Potential responsible parties
Business interruption	Commercial business interruption insurance

This prevents unrelated claims from becoming mixed together.

34. Review Settlement Documents Carefully

Before accepting a final settlement from any insurer, determine whether the document contains:

• Release;
• Waiver;
• Final settlement language;
• Reservation of rights.

Do not assume that a payment document affects only the amount currently being discussed.

35. Preserve the Right to Challenge Underpayment

If the owner believes the compulsory insurance calculation itself is incorrect, that dispute should be preserved separately.

Additional private insurance should not be used as a substitute for challenging an incorrect compulsory insurance assessment.

36. What If Both Insurers Blame Each Other?

This can happen where compulsory and private coverage overlap.

The owner should identify:

• Each policy’s insured interest;
• Coverage limit;
• Deductible;
• Exclusions;
• Excess provisions;
• Loss allocation.

Written positions from both insurers should be preserved.

37. Do Not Accept “This Is a Compulsory Insurance Issue” Without Checking

A private insurer may attempt to classify part of the loss as falling within the compulsory layer.

Conversely, the compulsory scheme may legitimately exclude categories covered by the private policy.

The policy wording should determine the result rather than informal explanations.

38. Calculate Consequential Losses Separately

Create separate schedules for:

Building Damage

Repair and reconstruction.

Contents

Furniture and personal property.

Accommodation

Temporary housing.

Rental Loss

Income lost while the property cannot be used.

Commercial Loss

Business interruption and additional operating expenses.

This makes both insurance and liability claims substantially clearer.

39. Foreign Owners Living Abroad Can Still Pursue Additional Claims

Residence outside Turkey does not itself prevent a property owner from organizing an insurance or liability claim concerning Turkish property.

However, practical arrangements may be necessary for:

• Property inspection;
• Expert examination;
• Document collection;
• Insurer correspondence;
• Formal proceedings.

A complete electronic claim file should be maintained.

40. Do Not Sell the Damaged Property Too Quickly

A sale before the claim is fully investigated may complicate:

• Damage evidence;
• Technical inspection;
• Reconstruction calculations;
• Claims against responsible parties.

Before selling, determine how the transaction could affect outstanding rights.

41. Do Not Destroy Evidence During Reconstruction

Rebuilding may be urgent, but preserve evidence first wherever safely possible.

At minimum:

• Photograph;
• Video;
• Obtain technical reports;
• Preserve official assessments;
• Keep invoices.

This can be essential in later litigation.

42. Keep Every Invoice

Additional compensation claims are substantially easier to prove when the owner has documentary evidence.

Keep invoices for:

• Emergency work;
• Engineering;
• Repairs;
• Temporary accommodation;
• Replacement contents;
• Other earthquake-related expenditure.

43. Prepare a Pre-Earthquake and Post-Earthquake Comparison

Useful evidence can include:

Before earthquake

• Property photographs;
• Rental listing;
• Purchase inspection;
• Renovation records.

After earthquake

• Damage photographs;
• Engineering reports;
• Repair quotations;
• Official findings.

This is particularly useful where the cause or extent of damage is disputed.

44. Build a Complete Compensation Strategy Before Starting Proceedings

The owner should know:

Total loss

minus

compulsory insurance payment

minus

private insurance payment

equals

remaining uncompensated loss

Then identify whether a legal basis exists for recovering that remaining amount from another responsible person.

45. Future Insurance Planning Matters

Official guidance confirms that where the property’s value exceeds compulsory earthquake coverage, additional voluntary insurance can be arranged for the remaining portion.

Foreign owners should therefore consider a layered insurance structure for the future:

Compulsory earthquake insurance + additional earthquake coverage + contents insurance + rental-loss or business interruption protection

depending on the property.

First 48-Hour Additional Compensation Checklist

Foreign property owners facing a substantial earthquake loss should:

1. Obtain the compulsory earthquake insurance policy.
2. Obtain the complete damage assessment.
3. Identify the compulsory insurance limit.
4. Locate every private insurance policy.
5. Check for additional earthquake coverage.
6. Check contents coverage.
7. Check rental-loss coverage.
8. Check alternative accommodation coverage.
9. Check business interruption coverage where relevant.
10. Photograph and video all damage.
11. Obtain technical reports where necessary.
12. Preserve pre-earthquake property evidence.
13. Calculate repair and reconstruction costs.
14. Prepare a contents inventory.
15. Calculate lost rent separately.
16. Preserve accommodation expenses.
17. Investigate construction defects.
18. Identify potentially responsible third parties.
19. Avoid signing broad releases prematurely.
20. Prepare a loss-by-loss recovery matrix.

Frequently Asked Questions

1. Can a foreign property owner claim more than the compulsory earthquake insurance payment?

Potentially, yes. Additional recovery may be available through private insurance, an underpayment challenge or separate claims against responsible parties, depending on the circumstances.

2. Can private insurance cover the amount above compulsory earthquake insurance?

Potentially, yes. Official guidance expressly recognizes additional voluntary coverage for the portion of building value exceeding compulsory earthquake protection.

3. Can furniture be claimed separately?

Compulsory earthquake insurance does not cover movable property. A private home or contents policy should therefore be reviewed.

4. Can foreign landlords claim lost rent from compulsory earthquake insurance?

No. Rental deprivation is expressly excluded from compulsory earthquake insurance. Other insurance or legal recovery possibilities must be examined separately.

5. Are temporary accommodation expenses covered?

Not by compulsory earthquake insurance. A private policy should be checked for additional protection.

6. Can a foreign owner claim against a contractor for defective construction?

Potentially, where a legal basis for liability, causation and compensable loss can be established. Such claims are separate from the compulsory insurance claim.

7. What if compulsory insurance underestimated the structural damage?

The owner should obtain the detailed assessment and consider independent technical evidence. An incorrect assessment should be treated as an underpayment dispute rather than automatically as an uninsured loss.

8. Can a foreign company recover business interruption losses?

Compulsory earthquake insurance excludes business interruption and loss of profit. A commercial business interruption policy or other legally available recovery route should be investigated.

9. Can the same damage be recovered twice?

No. Different insurance and liability claims should be coordinated to avoid duplicate recovery of the same loss.

10. What is the most important step?

Do not treat the difference between the total earthquake loss and the compulsory insurance payment as one single claim. Separate every loss and identify the correct insurer or potentially responsible party for each category.

Client-Focused Legal Support for Additional Earthquake Compensation in Turkey

Compulsory earthquake insurance should often be viewed as one layer of earthquake-loss protection rather than a guarantee that every economic consequence of the disaster will be compensated.

Official compulsory insurance rules exclude important categories such as movable contents, rental deprivation, alternative accommodation, business interruption and other indirect losses.

At the same time, official guidance confirms that additional voluntary property insurance can cover the portion of building value exceeding compulsory earthquake coverage.

Where defective construction or another person’s conduct contributed to the damage, potential liability claims should also be investigated independently.

A comprehensive recovery strategy may therefore combine compulsory earthquake insurance, additional private insurance, an underpayment challenge, technical engineering evidence, construction-defect claims and other legally available compensation remedies.

Fırat Fesih Kaya Law Office assists foreign homeowners, international investors and foreign property owners with earthquake insurance claims, additional compensation claims, underpaid insurance disputes, construction-defect losses and property-damage proceedings in Turkey.

Lawyer Fırat Fesih Kaya provides legal assistance in identifying every potential source of recovery, coordinating compulsory and private insurance claims, preserving technical evidence and evaluating claims against responsible parties.

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. Additional recovery depends on the applicable insurance policies, type and cause of damage, previous compensation, technical evidence, responsible parties and the specific circumstances of each property.