Property Insurances Under the Regulation of the Turkish Insurance Law


The Matter Of The Property Insurance

In property insurance, it is the benefit of the person who will benefit from the insurance, not the property itself that is the matter of such insurances. All kinds of benefits with an economic value can be subject to the insurance contracts.

Property insurance for commodities also covers individual items included in the commodity community.

In property insurance, the rule is to cover the damage to the property, but if the expected income from the property is also covered by insurance, a separate provision should be made in the contract.

Who Can Have Property Insurance?

Anyone who has a stake can also take out property insurance. Therefore, together with the landlord, tenants, agents, brokers, and creditors may also insure their interests in the properties. A person can insure the interests of someone else on the property as well as their own interests.

For What Purpose Are Property Insurances Done For?

Property insurance is made against risks that put people’s interests under threat. The subject of insurance does not necessarily have to be a material property. For example, in insurances such as credit insurances against the risk of non-payment of receivables, debt payment insurance, and loss of profit insurances, the danger of decreasing assets is insured, not a specific property.

Risks That Are Not Covered by Property Insurance

Damages arising from the loss of earnings in the event of the risk and the defective properties of the insured are not covered by insurance, a contract must be found between the parties in this regard in order to be covered by insurance. 

The subject of property insurance can be certain commodities or commodity groups. Changes in the commodities of goods will not affect the property insurance, so the contract remains valid.

Compensation Policy The purpose of property insurance is to compensate the damage of the insured with the compensation to be paid by the insurer. The insurer is only obliged to cover the damage of the insured, and cannot make any additional payment to them because there is a prohibition of wealth in insurance law. Therefore, in property insurance, the insurance cost cannot exceed the insurance value. The amount of insurance in question should be determined by the agreement between the parties. Although the compensation to be paid by the insurer cannot be more than the insurance value.

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