Building Insurance

General Conditions of Building Insurance Policies

Scope of the insurance warranties

Section 1- This insurance warranties any loss or damages to the values that related to its topics during the warranty period, within the building area, the exceptions that are shown in this insurance policy during building period, the unknown and sudden causes. 

The conditions that are not covered by the warranty, unless agreed otherwise

 

Section 2- Unless agreed otherwise, the following conditions are excluded from the warranty:

 

1. a) The machines, tools and materials that are used to build with temporary barracks and auxiliary building.

 

1. b) The damages that have affected third parties, the legal responsibilities to the insured person.

 

1. c) The uplifting of wreckage expenses as a result of the damages.

 

1. d) The transport expenses which have done by the serial vehicles except, planes that needs to be done in order to cover any loss or damages which are included in this insurance warranty, over-work costs.

 

1. e) The loss or damages that are caused by strike, lock-out, riot and public movements and the military operations which has to be done in order to prevent those.

 

1. f) The upkeep period which starts from the completion of the building or temporary acceptance.

 

1. g) The damages that are caused by the terrorist attacks, the sabotages that are caused by those attacks and the prevention of those attacks that are taken by related authorities in order to prevent or reduce its effects.

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The conditions that are excluded from the warranty

 

Section 3- The following conditions are excluded from the insurance warranty:

 

1. a) Every kind of loss or damages that are caused by war, every kind of war incidents, invasion, foreigner enemy movements, collusion (if it is declared war or not), interior war, revolution, rebellion, mutiny and the military action taken in order to prevent those.

 

1. b) All loss or damages caused by any nuclear fuel or nuclear residue as a result of burning of any nuclear fuel or ionized radiation occurred in relation to this or meeting of radioactivity and the military actions that needs to be taken in order to prevent those (“burning” which is used in this sub-section will cover any self-extended nuclear separation, “fission” incident).

 

1. c) The loss or damages caused by the disposal on any insured values made by the public authority.

 

1. d) The loss or damages that are caused by the mistaken plans or mistaken application of plans.

 

1. e) The loss or damages to the insured values caused by mistaken tools, these exceptions are restricted to mistaken employment, mistaken tools and sectional repairs and expenses of setting up are also covered.

 

1. f) Corrosion, oldness, rusting and rotten.

 

1. g) The tools and materials that are used to make the building, mechanic or electric fault or breakdown of those (this fault or breakdown that are caused loss or damage to the insured values are covered by the warranty).

 

1. h) The lack of inventory.

 

1. i) Insured person or the responsible person who is acting on his/her behalf, premeditated and the heavy deficiency of the agreement if there is any.

 

1. j) The direct or indirect loss or damages to be completed or temporary accepted sections of the building, delivered parts or parts that are in use by the employer.

 

1. k) If it is insured separately, the direct or indirect loss or damages to the parts in which their upkeep period is finished.

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1. l) The damages caused by the delay of the building, partly or totally stopping, not completing the guarantee, the cancellation of agreement or not applying the penalty conditions and the losses caused by all kinds of the loss of profit and aesthetic fault.

 

m) All kinds of vehicles that are transported by air and sea vehicles that belongs to the building.

 

1. n) Cash, valuable papers (like check-book, promissory note, stamp, shares and debentures) bill, file, loan proofs, and all books and papers that are related to an account, plans and projects of building and installation.

 

 

The period of the warranty

 

Section 4- The period of applications, with the condition that the start date which has stated in the policy to be taken as the base, starts from the time when the valuables are emptied from the building area and ends at the time stated in the policy. However, in the cases of the finishing of the building and delivering to the employer the period of warranty ends. If there is transport insurance for the emptied materials and tools in the building area which are the related topics in the warranty, then the transport insurance will start after the end of transport insurance warranty. The building works, that are the topics of insurance, are insured separately and the upkeep period have not finished on the agreed date, the warranty period will be extended after demonstrating the conditions and additional premium by the Instruction Committee if it is needed.

 

If the building works have stopped more than one month continuously with any reason which is a topic to the insured person, the insurance warranty will stop after a written notice by the insured person. If the insured person asks for the continuation of insurance warranty for the risks in the stopping period, the condition and price of stopping period will be demonstrated by Instruction Committee. The insurance period will be extended in relation with the amount of stopped days after the restart of the building. If the building has stopped more than 6 months contentiously then the price and belt in relation to the extended period will be demonstrated by the authorized Instruction Committee.

 

 

The start and the end of insurance

 

Section 5- This insurance shall begin on the start and end dates written in the insurance policy and also unless agreed otherwise, shall begin at 12:00 p.m. and shall end at 12:00 p.m.

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The declaration responsibility of the insurer

 

Section 6- The insurer has accepted this insurance depending on offer letter, policy and notices in its additions with the condition that the insurer must inform the real state of risks.

 

If the declaration of the insured person is not right or true, then in the situations that the insurer would be able to not start the agreement or make it heavier:

 

1. a) If the insured person is acting on purpose, after the insurer has informed the situation he/she could cancel the contract within 1 month and if the risks has occurred he/she would not pat the compensation. In the situations of forfeit the insurer gain rights in the premium.

 

1. b) If the insured person has not acted on purpose, and if this state has been informed before the happening of risks, then the insurer shall cancel the insurance policy within 1 month after he/she has been informed or may not end the agreement by getting the premium difference which is to be demonstrated by Instruction Committee.

 

The cancellation notice which has been made by the insurer is valid after 15 days at 12:00 noon as soon as it is posted the premium that does not operate is consequent and antecedent to the following applications:

 

1. I. The premium which belongs to the insurance period that does not operate shall be returned if the cancellation happened in the building period. Also, if t is stated as the check-period warranty, then the premium that belongs to this period shall be returned back.

 

1. II. If there is a fault which is found in the check-period then the premium will not be returned back.

 

If the insured person states that he/she does not accept the premium difference of the insurance in 15 days, then the agreement will be cancelled and the insurance premium that is not operate will be returned back.

 

1. c) The forfeit, cancellation or the right to ask premium difference will be cancelled if it is not used in time.

 

1. d) In the situations that there is no purpose from the insured person, risks;

 

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1- Before the insurer has informed the situation or,

 

2- In the period that the insurer could notice the cancellation or,

 

3- If it is happened in the period that the notice could be valid, the insurer, because of the heavy verified premium and risks, could reduce the compensation demonstrated by the authorized Instruction Committee and therefore the premium that needs to be verified in the proportion section.

 

 

The responsibility to give the notice in the insurance period and its results

 

Section 7- After the agreement that has been made, if the offer letter, policy and the place and its state written in its additions of the insured goods has been changed without the knowledge of the insurer, the insured person shall inform this changes:

 

1. a) If it is made either by the insured person or by another person on his/her behalf, immediately, or

 

1. b) If it is made by another person who is not acting on the insured person’s behalf, shall inform the insurer within 8 days after the insured person has informed the situation.

 

If this change makes the insurer not to start the agreement or makes the agreement harder to operate, after informing the situation, within 8 days:

 

1- Shall cancel the agreement or,

 

2- With the condition that requesting the premium difference demonstrated by the Instruction Committee, continue to operate the agreement.

 

If the insured person does not accept the demonstrated premium difference, then the agreement will be cancelled within 8 days.

 

After the cancellation notice has been posted or given to the notary public by the insurer at 12:00 noon within 8 days, after the cancellation notice has been posted or given to the notary public by the insured person at 12:00 noon on the following date it shall be valid.

 

In the situations of cancellations of agreements the authorized Instruction Committee shall demonstrate the necessity of the premium refunds of the insurance period that has not been operated and its value if it is needed.

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In all situation, for the passed day between the risks becomes harder and the finishing of the policy, the insurer has rights to get the premium difference.

 

The right of cancellation or requesting premium difference that has not been used on time will be lost.

 

When the insurer has informed that the place insured goods has been changed from the offer letter, policy and notices in its additions with the condition and the insurer acts like he/she accepts this change as the acquisition of the premium, the right of cancellation or requesting premium difference will be lost.

 

If the insured person does not inform about the changes that made heavier risks in the places of insured goods on purpose, then the compensation for damages after the notice period will be lost; there could be a reduce for compensation depending on the proportion between the received premium and the premium that needs to be received if the insured person failure to inform has not done on purpose. The premium difference will be given back to the insured person from the written information that has been given to the insurer until the end of the agreement, after demonstrated by the authorized Instruction Committee if these changes will lighten the risks and makes the premium to be lowered down.

 

The sections of this act will also apply to the insured person.

 

 

Changing of proprietorship

 

 

Section 8- If there is any change in the possession of the insured goods, the statute of insured person will continue and the loans and rights of the insured person in the insurance policy will transfer to the new rightful owner. Therefore, the new rightful owner, after he/she has been informed about the insurer’s and insured person’s existence, is under and obligation to inform the insurer about the circumstances of transfer within 15 days. If this obligation has not been done, then the insurer will be free from the responsibility. The insurer could cancel the changes and the new rightful owner could cancel the existence of insurance from the date of knowledge within 8 days.

 

The unused right of cancellation on time will be lost. In the cancellation of the insurance policy by the insurer, the cancellation will be valid after the date of the cancellation notice has been given to the post or public notary at 12:00 noon and in the cancellation of the insurance policy by the new rightful owner, the cancellation will be valid after the date of the cancellation notice has been given to the post or public notary at 12:00 noon.

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The period until the cancellation will be valid, in the situations of cancellation by the insurer, on the day basis, in the situation of cancellation by the new rightful owner, the premium difference which will be demonstrated by the Instruction Committee will be given back to the new rightful owner. In the situations of the changing of the possessor of the insured goods, the insured person that has not used the right of cancellation will be responsible with the new rightful owner for the current premium loans.

 

In the situation of the death of the insured person, all the rights band loans from this insurance will completely transfer to the new rightful owner.

 

 

The responsibilities of the insured person during the being in force of insurance policy

 

Section 9- The insured person, the tools and materials that are the topics of the building, for the safety and protection of the installations and machines, is under an obligation to act as an uninsured person.

 

The insurer is under an obligation to investigate and control the insured building with the authorized civil servant and the insured person is under an obligation to permit and help those investigations and controls.

 

 

Payment of insurance premium, beginning of the insurer’s responsibility and the default of the insured person

 

Section 10- If it is agreed that the whole of the insurance premium will be paid in installments, then first installment shall be paid as soon as the agreement has been made or latest on the date of handing over of the insurance policy. Unless agreed otherwise, in the situation of non payment of the first installment or premium, the responsibility of the insurer will not start and this condition shall be written down on the face of the insurance policy. The insured person falls into default if he/she fails to make the payment until the end of the handing-over date where it is agreed that the insurance premium or the premium will be paid in installments and the insurance agreement will be cancelled in 30 days from the date of falling into default without any notice if he/she still has not made any payment. The responsibility of the insurer will continue for first 15 days after the payment of premium in which it is agreed that the insurance policy will be handed-over with the start of the insurer’s responsibility.

 

In the situations in which it is agreed that the insurance premium will be paid in installments, the results of the non-payment on the defined payment date, the amount and

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in its fixed term shall be written on the insurance policy in order to inform insured person. If the insured person does not pay the fixed term premiums written on the insurance policy or the premium installments that he/she has been informed in writing, the insurance premium will be defaulted. The warranty of the insured person will stop within 15 days after the default of the premium loan. If the risks have not happened, the warrant shall continue from where it has stopped if the premium loan has been paid. If the premium loan has not been paid within 15 days from the date of stoppage of the insurance premium, the warranty will stop without a written notice.

 

In the situation of happening of risks, the fixed terms of the premium installments that has not yet come which does not exceed the amount of warranty where the insurer will have to pay becomes in promptly paid situation on the condition that it has to be written down on the face of the insurance policy.

 

According to this section, in the condition of cancellation of the insurance agreement, the premium that meets with the period in which the insurer’s responsibility continues shall be calculated on the day basis and the exceeding amount shall be given back to the insured person.

 

 

The amount of insurance and premium arrangements

 

Section 11- The insurance amount that has been shown in this insurance policy:

 

1. a) With the value of tools and the work of the building (custom, tax, picture and fees with the transport and employment expenses if there is one).

 

1. b) Also, the machines, tools and materials that has been used in the construction of the building and auxiliary building barracks and auxiliary buildings shall not be lower than the market value.

 

If there is an increase in the insurance amount shown on the insurance policy, the insured person is under an obligation to inform the insurer about circumstances in writing within 5 days of awareness and before any damage has been occurred.

 

The value increase which does not exceed 20 per cent of the insurance amount shall be taken as insured. The value increase which exceeds 20 per cent of the insurance amount must be agreed in writing by the insurer’s consent in order to be taken as insured. If the insurer does not accept the value increase which exceeds 20 per cent, the first danger insurance acts shall apply.

 

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The responsibilities of the insured person in the cases of damage

 

Section 12- The insured person is under an obligation to make the following conditions:

 

1. a) To notice the insurer within 5 days after the information of damages.

 

1. b) To take the saving and protection as he/she is not the insured person and to comply with the instructions this has been given by the insurer.

 

1. c) If the insurer has asked all the possible certificates and information in order to appoint the conditions and states of the causes of damages, amount of loss and damages with its evidences (the real ones or the photocopies which are the true copy of original stamped from the public notary), to give these certificates without any delay, to guarantee and keep all possible certificates which is for the use of returning right.

 

The insured person could repair any small damages (without any repair notice) for the building not to delay without waiting any authorized person of the insurer.

 

If the insurer does not sent hid/her expert to the damaged place within 7 days after receiving the damage notice, the insured person could start to repair the damaged place without depending on any records.

 

1. d) To give the amount of loss or damages with any compensation declaration in a just and reasonable time to the insurer.

 

1. e) Not to make any changes in the damaged places or goods unless exceptional circumstances.

 

1. f) To give permission to the persons who are authorized by the insurer for determining the returning right and compensation responsibility and to make investigation and study on the certificates that relates to this.

 

1. g) If there is another insurance agreement on the insurance topic, inform this agreement(s) to the insurer.

 

 

 

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The decline or loss of the compensation right

 

Section 13- If the insured person does not make his/her responsibilities in the damage incidents and if there in an increase in the damage amount as a result of this, the increased amount shall be reduced from the compensation that the insurer will pay.

 

If the insured person caused the realization of damage and acts to increase the amount of damages on purpose, the right that he/she has gained from the insurance policy will be lost.

 

 

Demonstration of the damage

 

Section 14- The amount of loss or damages that occurred to the insured goods shall be demonstrated by the parties according to this insurance policy. If the parties do not agree, the referee or expert witnesses which have chosen by the specialist engineers or technicians shall be demonstrated according to the following sections:

 

1. a) If the parties could not agree on one referee or expert witnesses, then each part chooses his/her referee or expert witnesses and informs the other party through notary public. The referee or expert witnesses chosen by the parties choose a third referee or expert witnesses and determine this with minutes within 7 days of the first meeting. The third referee or expert witnesses could only decide in the disagreement of the referee or expert witnesses chosen by the parties only with one report. Report of the referee or expert witnesses shall notify to the parties at the same time. Referee or expert witnesses reports per unit that demonstrates loss or damage amount and the other determined and possible reason;

 

The amount of the damaged value one day before the damage with its renewal (setting-up) value,

 

The weight and the value of the damage shall be including for the benefit of repair and other conditions.

 

1. b) If either one of the parties do not choose their referee or expert witnesses within 15 days of notification of other party or referee or expert witnesses chosen by the parties do not agree with the third referee or expert witnesses within 7 days, the third referee or expert witnesses shall be chosen by the relevant court by expert person to deal with trade cases in the damaged premises.

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1. c) Both parties have a right to obtain the third referee or expert witnesses (either chosen from the referee or expert witnesses or from the head of the court) outside from the residence of insured person or the insurer or outside from the place of the damage and this desire has to be done.

 

1. d) If the referee or expert witness dies resins or rejected, then the new referee or expert witnesses shall be chosen by the same method and he/she shall continue from where the old one left.

 

The duties of the selected referee or expert witness do not end if the insured person dies.

There could be a dissapprovement for the capacity of referee or expert witnesses chosen by the parties. If there is no disapproval for the capacity of referee or expert witnesses within 7 days, then this will be void.

 

1. e) The referee or expert witnesses are totally free to inspect. They are not dependant on any other sections.

 

1. f) The referee or expert witnesses could ask documents and registrations in order to determine the risk on the insured goods with the relevant evidences for the determination of damage and could study on the insured premises.

 

1. g) The decision of the referee or expert witnesses or third referee or expert witnesses that they have given on the amount of the loss or damage is final and binding by the parties. If the losses or damages have not demonstrated by any parties, then the compensation could not be obtained from the insurer an there could be no case. The decision of the referee or expert witnesses shall be determined through the first glance, there could be a disagreement if there is a strong difference from the new situations and cancellation of those shall be done after the date of delivery within 7 days and could be asked from the courts which are authorized to hear trade cases.

 

1. h) The payment of the amount of compensation could only be promptly paid after the decision of referee or expert witnesses and the passage of time will not start until the delivery of the definite report.

 

1. i) The parties are responsible for the finance of their referee or expert witnesses. Finance of one referee or expert witnesses or third referee or expert witnesses is to be paid equally.

 

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1. j) The demonstration of loss or damages, warranted risks, the amount of insurance, the value of insurance, the insurance under excessive and profit value, start of responsibilities, the caused that reduces or decrease the rights could not be influenced according to the sections and condition written down in this policy.

 

 

Finance of the compensation

 

Section 15- The amount of warranty shall be demonstrated by the amount of insurance written in the added list and not exceed over the insurance amount in all circumstances.

 

A- In the materials that are the topics of building:

 

1. I. In the cases of partial damage:

 

It is the amount that shall be paid in order to bring insured goods that is warranted back to the condition of the day before. This amount covers the cost of building materials, employment, transport expenses, custom (if there is one), tax, picture and fees. This payment does not exceed the day before costs. Exemption (if there is one) shall be reduced.

 

1. II. In the cases of full damage:

 

The amount of the insurance is the damage amount of the day before. The exemption shall be reduced if there is one.

 

B- If it was warranted with another agreement:

 

In the tools, materials and machines for the construction of the building:

 

1. I. In the cases of partial damage:

 

This amount covers the cost of building materials, employment, transport expenses, custom (if there is one), tax, picture and fees with there will re decrease for the old-new difference for the parts that have been renewed. Exemption (if there is one) shall be reduced.

1. II. In the cases of full damage:

 

The amount of the insurance is the damage amount of the day before. The exemption shall be reduced if there is one.

 

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C-The uplifting of wreckage costs:

 

The amount of the warranty is the cost of the uplifting of the area and the maximum amount has been shown in the insurance policy.

 

D- The transport and over-work amounts in the serial vehicles: the amount of the warranty is the amount for these purposes and it is shown in the insurance policy.

 

E- In relation with the amount paid for the repair of partial damage, it shall be accepted by the insurer in proportion with the reduction to the repair costs.

 

F- The amount of compensation in relation with the partial damages according to the bases stated in paragraph (I) exceeds the day before the damage amount of insured goods, it shall be paid as in paragraph (II) that relates with full damage.

 

G- If it is demonstrated that the damage is lower that the insurance amount, there shall be a discount to the amount that needs to be insured with the amount of warranty for compensation.

 

 

Section 16- The insurer could repair the damage of the insured goods and also could pay in cash.

 

In the cases of joint insurance, the insurer shall pay his/her shares in the compensation after the calculation of the compensation in relation with the insurance policy.

 

However, where there are special regulations and sections contained, in the appointment of the compensation shares these will be taken into account. In the case of damage to one unit of the insured goods, the damage shall be paid to that unit up to the insurance amount and the total cost of the damage shall not exceed the insurance amount of that unit.

 

 

The results of damage and compensation

 

Section 17- The insurer becomes the insured person in law according to the amount paid for compensation. The insured person is under an obligation to provide all possible certificates to the insurer where he/she will set up in the case.

 

In the cases of occurrence of warranted risks with the full damage, the insurance warranty will end. In the cases of partial damages, the paid compensation amount shall be reduced from the date of damage of insured goods.

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The warranty of insurance of the units (groups) will end on the date of damage where those units (groups) in the insurance policy have been shown separately and one or more than one of them have been damaged.

 

If it has partially damaged, the paid compensation amount shall be reduced from the date of damage of insured goods.

 

In the cases of missing of insurance amount, the insurance amount could be taken back to the old amount with the condition of taking premium on the day basis.

 

If the insurer uses his/her right of cancellation, this cancellation shall be valid within 15 days at 12:00 noon after it is posted or given to the notary public and until the date of validation for this cancellation, the premium shall be engaged with the following applications:

 

1. III. The premium shall be returned on the day basis that belongs to the insurance period which has not begun where the cancellation happens within the building period.

 

1. IV. If there is an incident found in the cancellation check period, the premium that belongs to this period will not be refunded.

 

If the insurer uses his/her right of cancellation, this cancellation shall be valid within the following day at 12:00 noon after it is posted or given to the notary public and the premium will not be refunded in the insurance period.

 

 

Leaving

 

Section 18- Unless agreed otherwise the damaged goods could not be given to the insurer.

 

 

 

Different Regulations

 

 

Tax, Picture, Fee and Management Expenses

 

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Section 19- The insured person will be responsible for the current or possible tax expenses, picture or fees with the management expenses shown in the insurance agreement.

 

 

Delivering and Warnings

 

Section 20- The insured person’s warnings and deliveries shall be posted by a letter to the centre of insurance agent or the agent who was the mediator to the insurance agreement through notary public.

 

Insurance agent’s warnings and deliveries shall be sent to the insured person’s address shown in the insurance policy, or in the cases of changing of address, to the last known address of the insured person that he/she has been informed the centre of the insurance agent or the agent who was the mediator to the insurance agreement.

 

The warnings and deliveries that have been posted to the parties with signature or by telegraph are also valid.

 

The warnings which state the incidents of the damage or the start of the repair must be made through telegraph.

 

 

Keeping the trade and job secrets

 

Section 21- The insurer will be responsible for the damages that have been caused from non-keeping the secrets of the insured person.

 

 

The authorized court

 

Section 22- The authorized court to hear all the cases that have been taken to the court against the insurance agent because of this insurance policy, shall be within the residence of the centre of the insurance agent or the agent who was the mediator to the insurance agreement or within the place of damage incident and the authorized court for the cases that have been taken by the insurance agent shall be within the residence of the defendant and authorized to hear trade cases.

 

 

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Passage of time

 

Section 23- The entire requests which have been made through the insurance agreement will lapse in 2 years.

 

 

Special conditions

 

Section 24- Any special condition could be added to these general conditions or if there is any clause, it could not be conflict with it.