Business · Economy · 5 hrs ago
Turkey floods expose gaps in insurance coverage
Floods hit Istanbul and nearby areas last week, damaging thousands of homes and businesses and sweeping away hundreds of vehicles.
Insurers estimate covered damage at roughly $350 million to more than $400 million, though claims are still being assessed and estimates differ.
The total cost could reach several billion dollars when lost business, income and production are included, but that estimate excludes damage to cities and infrastructure.
Many people and businesses lack insurance: in Istanbul, only about 17% to 20% of homes and workplaces are insured, while about 43% of vehicles have comprehensive coverage.
Existing policies can cover flood damage, but people without insurance may have to bear the costs themselves.
A compulsory disaster insurance scheme has been awaiting legislation for five years, and insurers say coverage needs to reach more people.
It is unclear whether the scheme will be discussed in parliament before the COP31 meeting in November.
Flooding last week across Istanbul and nearby areas damaged thousands of homes and businesses and hundreds of vehicles.
Insurance industry representatives estimate insured losses at about $350 million to $400 million, while total economic losses could reach several billion dollars.
The figures have renewed concern about the number of people and businesses without adequate insurance coverage.
The Turkish Insurance Association issued a guide on making and documenting claims after floods and water damage.
Industry representatives called for wider insurance coverage and the introduction of a proposed compulsory disaster insurance scheme.
- Who
- Residents, businesses and vehicle owners were affected. Turkish insurance industry representatives discussed the losses and coverage gaps.
- What
- Flooding caused damage, with insured losses estimated at $350 million to $400 million. The event highlighted gaps in insurance protection.
- When
- The flooding occurred last week. The article was published on October 19, 2026.
- Where
- Istanbul and nearby areas, including Kocaeli, İzmit and Yalova.
- Why
- Heavy rain caused flooding. Low insurance coverage means much of the resulting economic loss may not be insured.
This story does not have two clearly opposing sides.
Flooding affected Istanbul, Kocaeli, İzmit and Yalova, damaging homes, businesses and vehicles.
The Turkish Insurance Association prepared a guide for people and businesses affected by flooding and water damage.
Reports from Istanbul had reached 1,486 in the fire insurance line and 670 in motor insurance, with reported claim liabilities exceeding 1.7 billion lira.
The article raised whether the proposed Compulsory Disaster Insurance scheme would come before parliament ahead of COP31.
- Estimated insured losses
- $350 million to $400 million
- Potential total economic losses
- Several billion dollars, excluding city and infrastructure damage
- Istanbul home and workplace insurance coverage
- 17-20%
- Istanbul vehicle insurance coverage
- 43%
- Istanbul reports
- 1,486 in the fire insurance line; 670 in motor insurance
- Reported claim liabilities
- More than 1.7 billion lira
What people are saying
The protection gap is evident in the fact that the rate of insurance coverage for homes and workplaces in Istanbul remains in the 17-20% range.
Initial assessments indicate that insured losses could be around $350-400 million.
The main need is to make existing coverage available to wider sections of the population and increase the insurance rate.
Compulsory Disaster Insurance should be introduced.