Post: Saturday September 1, 2012
We received several inquiries regarding earthquake insurances after the northern Japan earthquake.
Although many of you may already have fire insurance, it will not compensate any damages of household effects or a house caused by natural disasters such as earthquakes and tsunami or a fire caused by natural disasters.
We’d like to give some descripti on on “insurance” as follows. Although “insurances” are closely linked to our life, it appears difficult once you start considering applying for one.
Here are brief explanations on two cases for tenants and owners.
< < insurance for tenant>>
First of all, tenants need to buy a “fire insurance” for household effects. It is also common for tenants to buy a “householders insurance” package that includes all necessary services.
For example, it will compensate not only damages caused by fire but also include the cases:
“ When a child broke a computer or a vase
“ When the house got flooded because of overflow of washing machine, or
“ When the soccer ball you kicked hit and injured someone else by accident, etc.
However “earthquake insurance” is not included in ordinal fire insurance. You may want to check the followings when you are applying for an insurance package:
“ Can I apply as an optional coverage?
“ Is “earthquake insurance” included in a householders insurance package?
“ How much coverage can I get for a building and household effects?
Let’s see how much it will cost to buy fire insurance including “earthquake insurance”.
Property: A wooden detached house in Tokyo, 100sqm., 10 years old
Set the maximum compensation of household effects to 6,800,000 yen
In this case, annual premium of “householders insurance” with “earthquake insurance option” will be estimated roughly around 20,000 yen to 40,000 yen.
- Home contents insurance Up to 6,800,000 yen
- Tenant liability Up to 15,000,000 yen
- Repair cost Up to 1,000,000 yen
- Personal liability insurance Up to100,000,000 yen
- Earthquake insurance Up to 3,400,000 yen
(The coverage of “earthquake insurance” is normally between 30- 5o% of home contents insurance. However it is limited up to 10,000,000 yen.)
< < insurance for property owners>>
The annual premium for an owner of a wooden detached house of 100sqm. in Tokyo is estimated to be around 120,000 yen.
<<Coverage>>(a case for a wooden detached house)
- Building insurance 20,000,000 yen
- Earthquake insurance for a building 10,000,000 yen
- Home contents insurance 10,000,000 yen
- Earthquake insurance for home contents 5,000,000 yen
- Accident expenses special contract- – - 20% of Casualty Insurance claims or up to 3,000,000 yen.
- Fire after an earthquake special contract 5% of Building insurance claims or up to 3,000,000 yen.
The premium will be half of wooden buildings for ferroconcrete building (fire- resistance) structures, which comes to be around 50,000 yen a year.
The premium differs depending on the structure of building, whether wood or ferroconcretes, or on how much you insure your household effects regardless whether you rent or own a property.
Although the insurance above will not be perfect, it is essential to buy insurance when you rent or own a property.
Please do not hesitate to inquire even if you do not speak Japanese.
There are some bilingual insurance agents offering fire insurance who can assist you from making an estimate to provide supports after incidents in English just like car insurance. You will be able to buy one comfortably even though these insurance policies appear so complicated.
cf. Ace Insurance Web (information on English bilingual agent is available.)
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