Fear of Fire Drives Rush for ‘Insurance’
A series of forest fires in different districts of Izmir has caused fear among citizens. Those who don't want to lose their homes, workplaces, or land, acquired with great effort over the years, have found a solution in fire insurance. Prof. Dr. Coşkun Küçüközmen, a faculty member at Izmir University of Economics (IUE), Faculty of Business, Department of International Trade and Finance, stated that the number of people wanting to get fire insurance, especially in settlements near forested areas, has increased. “We'll be able to see the exact increase rate in insurance after the summer ends. However, based on current demands, a 15% increase is predicted,” he said.
Emphasizing that individuals should be properly informed about policy coverage when taking out insurance, Prof. Dr. Küçüközmen said, “Forest fires are an annual occurrence every summer. However, people aren't informed about how to perceive this risk or how to insure against it. With the increase in fires, everyone started to feel uneasy. Those whose homes or workplaces are close to forests were significantly affected and began to wonder what to do.”
“NOT ALL FIRE INSURANCE IS THE SAME”
Noting that not all fire insurance policies are the same, Prof. Dr. Küçüközmen said, “Attention should be paid to whether the policy covers only the building or both the building and its contents. In some policies, special situations like forest fires, smoke damage, or unintended spread might be excluded. This detail must be thoroughly inquired about. Your home might be rented, and in such a case, you could lose rental income. Additionally, you might not be able to access your home after a fire. Your home might not have burned but could be damaged in other ways. All these should be checked to see if they are covered by the insurance.”
“ADDITIONAL COVERAGES MUST BE INDISPENSABLE”
Prof. Dr. Küçüközmen also underlined the importance of ensuring that homes or contents are insured at their real market value. “Underinsurance leads to grievances during the claims process. Over-insurance results in meaningless premium payments. It's crucial to add additional coverages to the policy, such as smoke damage, flood, debris removal, loss of rent, and alternative housing expenses, which come with fire. Especially for homes near forested areas, these additional coverages should be indispensable. Compulsory Earthquake Insurance (DASK) only covers damages caused by earthquakes, not fires. Fire insurance is a separate coverage. The chosen insurance company's past payment performance, customer service quality, and expert support should also be considered. To avoid delays in the claims process, documents must be submitted completely and on time,” he said.
“A RISK MAP MUST BE CREATED”
Prof. Dr. Küçüközmen continued as follows: “The scope of insurance needs to be explained within the framework of probability calculations. Has there been a fire in your area before? What is the likelihood of one occurring? What precautions do you have in place if one does occur? A risk map that carefully evaluates everything you can think of must be created. The insurance company also needs to secure itself. Therefore, it's very important for the insurance company to inform the individual accurately and comprehensively. For housing complexes, it's important to get collective insurance rather than individual policies. After these fires, there will be an increase in the number of people wanting to get fire insurance in settlements located in forested areas. We'll be able to see this rate clearly after the summer passes. However, based on current demands, a 15% increase is predicted in the number of people getting fire insurance.”
