Why DASK Alone Will Not Cover a Turkish Development
Uzbek investors evaluating residential or mixed-use projects in Türkiye consistently ask one question early in due diligence: what happens to the asset if a major earthquake strikes. The honest answer is that Türkiye's mandatory earthquake insurance scheme, known as DASK, is a necessary starting point, not a complete answer. Understanding the gap between what DASK covers and what a serious investor actually needs is one of the more consequential pieces of regulatory homework in any acquisition.
What DASK Is : DASK, the Turkish Catastrophe Insurance Pool, is a state-backed compulsory insurance program covering residential units against earthquake damage to the physical structure. It was created after the 1999 Marmara earthquake to spread catastrophic risk across a national pool rather than leaving individual owners or the state treasury exposed. Registering a title deed transfer or renewing certain municipal services in Türkiye generally requires a valid DASK policy, so in practice it is unavoidable for any residential owner.
What DASK Does Not Cover : This is where many foreign buyers, including Uzbek investors accustomed to different insurance regimes, get caught off guard. DASK coverage is capped at a fixed sum insured that is revised periodically and is often well below the reconstruction cost of a mid-to-high-end unit in Istanbul, Izmir, or other major markets. It also excludes furniture, fixtures, interior finishes, and any commercial or income-generating use of the property. Structural damage beyond the cap, business interruption, loss of rental income, and liability exposure all fall outside the standard policy. For an investor holding the property for rental yield or eventual resale, this gap can be material.
Layering Private Coverage : The standard practice among institutional and experienced individual investors is to treat DASK as the base layer and add a private earthquake and all-risks policy on top. Private insurers in Türkiye offer supplemental earthquake coverage that extends the sum insured closer to actual replacement value, and can be bundled with content, liability, and loss-of-rent protection. For commercial or mixed-use assets, this layered approach is close to standard practice rather than optional, since commercial structures are not automatically covered by DASK in the same way residential units are.
Building Age and Code Compliance Matter More Than the Policy : Insurance is a financial backstop, not a substitute for structural resilience. Türkiye's building code has been revised multiple times since 1999, most significantly in 2018, tightening seismic design requirements for new construction. A property built to current code in a well-managed development will generally face lower premiums, fewer exclusions, and a materially lower probability of a total loss than an older structure in the same district. Before finalizing a purchase, Uzbek investors should request the building's structural inspection reports, occupancy permit dates, and any retrofit history, and treat this documentation with the same weight as title and zoning checks.
Regional Risk Variation : Not all of Türkiye carries the same seismic exposure. The Marmara region, the Aegean coast, and parts of southeastern Anatolia sit on active fault systems and warrant closer scrutiny of both building quality and insurance structuring. Other regions carry comparatively lower baseline risk. This is not a reason to avoid the higher-risk, higher-demand markets like Istanbul, but it is a reason to price seismic due diligence into the acquisition process rather than treating it as a formality at closing.
Practical Steps Before Purchase : Confirm the DASK policy is current and correctly valued, obtain a private supplemental quote before signing, request structural documentation directly from the seller or developer, and if the asset is commercial, verify what parametric or blanket coverage options exist through Turkish insurers. Working with a local advisor who can coordinate between the insurer, the notary, and the structural engineer typically shortens this process considerably and reduces the risk of a coverage gap surfacing only after a loss event.
For Uzbek investors used to a different regulatory baseline, the key takeaway is straightforward: DASK is a floor, not a ceiling, and building quality is the real determinant of risk.