Kuwaiti capital has moved into Turkish real estate and construction projects steadily over the past decade, drawn by yield, geographic proximity, and the relative ease of structuring acquisitions through a Turkish limited company. What receives less attention in early-stage due diligence is insurance: the regulatory framework governing property, earthquake, and construction risk in Türkiye differs enough from Gulf practice that Kuwaiti investors and developers benefit from understanding it before capital is committed, not after a claim.
DASK and the earthquake insurance mandate
Türkiye operates a compulsory earthquake insurance scheme known as DASK (Doğal Afet Sigortaları Kurumu), applicable to residential structures within municipal boundaries. For any Kuwaiti buyer acquiring a completed residential unit, DASK coverage is a precondition for utility connection and, in practice, for completing certain title transactions. DASK is not, however, a substitute for comprehensive property insurance. It caps payouts at a set structural value and does not cover contents, business interruption, or partial non-structural damage beyond its schedule. Investors treating DASK as sufficient protection for an income-producing asset typically discover the gap only after a loss event, when the shortfall between DASK payout and actual rebuild cost becomes their own liability.
Practical point : for mixed-use or commercial holdings, DASK does not apply at all, and the insurance burden shifts entirely to privately placed commercial property and business interruption policies, which should be scoped before closing rather than treated as a post-acquisition formality.
Construction-phase risk: All Risk and third-party liability
For Kuwaiti investors funding new-build or renovation projects, the relevant instrument during the build itself is Contractor's All Risk (CAR) insurance, typically required as a condition of the construction contract and often specified by the lender if Turkish bank financing is layered into the capital stack. CAR coverage should be verified against the actual scope of works, not assumed from the contractor's general assurance that "insurance is in place." Common gaps worth checking during due diligence include coverage limits that have not been updated against current replacement cost estimates, exclusions for design defects, and third-party liability sublimits that are inadequate for dense urban sites where adjacent structures are exposed to excavation or vibration risk.
Practical point : a Kuwaiti investor engaging a contractor should request the CAR policy schedule directly from the insurer or broker, not only a certificate of insurance from the contractor, since certificates can lag actual coverage or omit endorsements material to the project.
Professional indemnity and structural liability period
Türkiye's building inspection system assigns statutory liability to yapı denetim (construction supervision) firms and, separately, imposes a structural liability period on contractors and design professionals, generally extending well beyond project handover. This liability regime is a regulatory feature specific to the Turkish market and does not map directly onto Gulf construction contract practice, where liability periods are typically negotiated contractually rather than set by statute. Kuwaiti developers should confirm which professional indemnity and structural defects coverage the supervision firm and design consultants carry independently of the main contractor's CAR policy, since a gap here can leave a Kuwaiti owner exposed if a supervision firm's coverage lapses or proves inadequate relative to the statutory liability window.
Currency and claims settlement
A further point specific to foreign investors is claims settlement currency. Premiums and payouts on Turkish policies are generally denominated in Turkish lira, which introduces currency exposure between the time a claim is filed and settled, particularly relevant given lira volatility. Kuwaiti investors holding income-producing assets should factor this into their broader currency risk planning alongside rental income and financing costs, rather than treating insurance as a currency-neutral line item.
Working with a broker who understands both sides
The practical takeaway for Kuwaiti investors is that Turkish insurance regulation is not simply a variant of familiar Gulf practice with different paperwork. DASK's statutory scope, the structural liability period tied to yapı denetim, and CAR policy verification each require independent attention during due diligence. Engaging a broker and legal advisor with direct experience placing coverage for foreign-owned Turkish entities, and reviewing policy documents in the original Turkish alongside any translation, remains the most reliable way to close these gaps before they become claims disputes.