Living in a Dwelling Owned by You or Your Family
If your own dwelling or its contents are damaged by fire, a typhoon, heavy rain or other natural disaster, you must bear repair and other costs associated with the damage.
For example, Japanese law stipulates that even if a fire that originated at a neighboring property damages your dwelling, you may not, as a rule, claim damages against the neighbor. Accordingly, you must bear repair and other costs for the damage.
To prepare for risks related to your dwelling and its contents, we recommend that you purchase homeowner (fire) insurance
Generally, most general insurance companies provide insurances such as the following.
Coverage
- Homeowner (fire) insurance protects your dwelling and its contents from fire and other risks.
- Various types of insurance products are provided. The following shows the major perils covered by homeowner (fire) insurance.
- Fire
- Lightning, burst or explosion
- Windstorm, hail, or snow disaster
- Collision or falling of objects coming from outside
- Violence or destruction during a riot, strike, etc.
- Theft
- Water leaks
- Flood
※Losses caused by earthquakes, volcanic eruptions, or tsunamis are not covered by homeowner (fire) insurance.
- As coverage details vary between general insurance companies, please check to find the policy most suitable for you.
Subject-matter
- As building insurance alone does not cover contents, each dwelling and its contents should be insured.
If you wish to cover your contents, you can either purchase a rider for the contents to your building insurance or make a separate contract. - When insuring your contents, you are required to notify the general insurance company of any valuable items in your possession such as jewelry and works of art, etc. If there is no such notification, the loss of such items will not be covered.
Amount Insured
Recently, in general, the amount insured of homeowner (fire) insurance is set based on the cost of replacement.
Therefore, if your dwelling is destroyed by fire, you can get enough benefit from your insurance to replace your dwelling.
※“The cost of replacement” refers to the amount necessary to newly build or purchase an equivalent property.
※Please note that the explanations about the general insurance referred above are based on the Japanese laws and practices. Please also note that the explanations referred above are examples.
Actually, they may vary depending on each circumstance.
When you wish to obtain a homeowner (fire) insurance
To prepare for the risk of an earthquake, volcanic eruption, or tsunami, we recommend that you purchase earthquake insurance
Recently, various natural disasters have been occurring around the world. In Japan, earthquakes occur more frequently than in other countries, so it is possible to be affected by an earthquake anywhere in Japan.
However, with only homeowner (fire) insurance, you are not covered for damage to your dwelling and contents resulting from an earthquake.
※Japan’s earthquake insurance system is jointly operated by the government and general insurance companies.
Therefore, there is no difference in coverage and premium rates among general insurance companies.
Coverage
“Earthquake Insurance for Dwelling Risks” covers losses resulting from an earthquake, volcanic eruption, or tsunami. These risks are not covered by homeowner (fire) insurance.
- Dwellings burnt down by fire, including its spreading thereof, caused by an earthquake.
- Dwellings collapse in an earthquake.
- Dwellings damaged by a volcanic eruption.
- Dwellings swept away by a tsunami.
- Dwellings buried in an earthquake.
Earthquake insurance must be attached to homeowner (fire) insurance. It cannot be purchased separately.
You may attach earthquake insurance while your homeowner (fire) insurance policy is valid.
Subject-matter/Amount Insured
- If you will live in your own dwelling, your dwelling and its contents are the subject matter of the insurance.
- Each dwelling and contents should be insured.
- The amount insured for earthquake insurance is within a range of 30-50% of the amount insured of the principal homeowner (fire) insurance policy.
- The maximum amount insured is 50 million yen for a dwelling and 10 million yen for contents.
Premium and Discounts
- Premiums differ depending on the structure and location of the dwelling.
- Discounts are applicable to building structures that meet certain grades stipulated by Law.
- There is a tax deduction system for earthquake insurance.
※Please note that the explanations about the general insurance referred above are based on the Japanese laws and practices. Please also note that the explanations referred above are examples.
Actually, they may vary depending on each circumstance.
When you wish to obtain an earthquake insurance