Voluntary building and home insurance due diligence in Türkiye
“Home insurance” is not a single standardized promise that can be understood from the product name. Fire Insurance General Conditions provide a base framework, while the actual protection depends on the policy schedule, special conditions, endorsements, exclusions and limits. It must also be distinguished from DASK. Compulsory earthquake insurance has its own statutory scope; voluntary insurance can add building, contents and other protection only to the extent written in the contract.
1. Identify the insured person and insured property
Read the insured, beneficiary, risk address and independent-unit details. Determine whether the policy covers the building, household contents, owner liability or a combination. In an apartment complex, a management policy should not be assumed to cover the owner’s interior finishes or contents, and an individual owner policy should not be assumed to insure all common areas. Obtain the schedule that defines the subject of insurance.
2. Keep DASK and voluntary insurance separate
DASK covers specified earthquake-related material building damage within its rules and limits and excludes contents, loss of rent and several indirect losses. DASK itself explains that owners may purchase voluntary insurance for value above DASK protection and for other risks. The DASK tariff also requires compulsory earthquake insurance to be checked when earthquake cover is included in voluntary policies for buildings within the compulsory scheme. A home policy therefore does not automatically remove the DASK requirement.
3. Sum insured is not automatically the sale price
Building insurance may use reconstruction or insured value defined by the policy; contents have a different value, while market price can include land and location premiums that are not reconstruction cost. Document how the sum insured was selected and whether the policy contains indexation or underinsurance provisions. If the amount appears materially low against replacement cost or the actual contents, ask the insurer or intermediary to explain how a partial loss would be settled.
4. Read covered perils instead of relying on “comprehensive”
The fire conditions form a foundation, but earthquake, flood, internal water damage, theft, glass breakage, liability, loss of rent and other perils may be endorsements or separate extensions depending on the product. Do not write “fully insured” unless the policy schedule demonstrates it. For each material peril identify the limit, exclusion, deductible, sublimit and any prevention or notification obligations.
5. Check exclusions and building alterations
Major renovation, change of occupancy, long vacancy, undisclosed business use or changes in construction can affect underwriting and policy conditions. If the property has materially changed, confirm that the insurer has the current facts. A policy based on the old apartment configuration may not be reliable evidence after structural alterations. Special conditions must be read together with the general conditions because they can expand or restrict protection within the lawful contract.
6. Mortgage and beneficiary interests
A lender can have an insurable interest and may appear as a beneficiary or mortgagee under the policy arrangements. Check the bank name, loan relationship and property. When a loan is repaid or ownership changes, do not assume beneficiary details update themselves. Obtain an endorsement where required; incorrect beneficiary data can complicate claim payment and release of proceeds.
7. Claims history and renewal
Ask for relevant prior claims concerning the unit or building, particularly water, fire and major events. A prior claim is not itself a reason to reject the property; the issue is whether the cause was repaired and whether repeated losses point to an unresolved defect. Check start and expiry dates and arrange a fresh quotation when ownership, use or contents value changes rather than simply copying the seller’s policy.
8. Closing-day continuity
Clarify who bears the risk of physical loss between signing and handover and when the buyer’s cover begins. Avoid a gap created when the seller’s policy expires or is cancelled on sale. Keep evidence of the buyer’s effective date and active DASK where required. If a lender mandates insurance, satisfy the lender’s written policy requirements rather than presenting any generic home policy.
9. Red flags
- “Comprehensive cover” with no schedule of perils and limits.
- A voluntary home policy presented as a universal substitute for DASK.
- An unexplained or very old sum insured.
- Address, unit or occupancy different from reality.
- Material alterations not disclosed to the insurer.
- An old bank or beneficiary still shown with no explanation.
- Repeated water/fire claims without evidence the root cause was fixed.
- A gap between seller cover and buyer cover.
10. Records
Retain the policy schedule, general and special conditions, endorsements, coverage limits, deductibles, premium receipts, connected DASK evidence, claims correspondence, repair records and renewal proof. A useful insurance file should answer two questions immediately: what risk is insured, and for what amount under what conditions?
Frequently asked questions
Does home insurance replace DASK? Not for buildings subject to the compulsory DASK regime.
Does every policy include flood, theft and loss of rent? No. Check the schedule and endorsements.
Is the sum insured the property’s market price? Not necessarily; reconstruction, contents and market value are different concepts.