When taking out a home loan, the only insurance you are legally required to obtain is DASK, mandatory earthquake insurance. Life insurance, property insurance, and personal accident insurance are entirely optional. A bank cannot issue a loan-linked insurance policy without your explicit request. If you decide to purchase insurance, you can obtain the policy from any insurance company of your choice.
Why Is DASK Mandatory?
The DASK requirement does not stem from the credit agreement, but from Law No. 6305, the Disaster Insurance Law. The law requires a valid mandatory earthquake insurance policy for properties covered by it in title deed transactions. Since the home purchased with a home loan is mortgaged to the bank, this title deed transaction cannot be completed without a DASK policy.
When buying a home, the policy is obtained by the buyer. According to the source information, as of September 5, 2026, the seller's policy will not be transferred to the buyer. Therefore, the buyer will need to obtain a new policy in their name before the title deed appointment. The policy can be obtained through any authorized insurance company, agency, or bank, and the premium is determined according to the same official tariff regardless of which channel is chosen.
Optional Insurance
Life insurance: According to the Ministry of Commerce's statements, loan-linked insurance cannot be obtained without the consumer's explicit request. However, banks frequently recommend this insurance. This is because if the loan holder dies or becomes disabled, the remaining debt is covered, protecting both the bank and the family. Whether to obtain this protection on long-term loans is up to you.
Property insurance: This insurance is also not a legal requirement. However, since a mortgaged home is the asset the bank considers as collateral for the loan, the bank may request property insurance. While DASK protects the building only against earthquakes, property insurance also covers risks such as fire, flooding, and theft. In other words, the insurance benefits not only the bank but also the homeowner.
You Are Not Required to Obtain Insurance from the Bank
If you choose to obtain loan-linked insurance, you can purchase the policy from any company of your choice. The regulations require the bank to accept coverage obtained from another company. This is why it makes sense to compare the bank's recommended policy with offers from other companies. In the comparison, you should consider not only the premium amount but also the coverage scope and policy duration.
Additional Product Condition and Information Form
A home financing agreement cannot be conditioned on purchasing products and services unrelated to the credit. A bank cannot offer products such as automatic payment instruction or supplementary health insurance as a condition for providing credit.
In the information form provided by the bank before signing the contract, it should clearly state that optional insurances such as life and property insurance are not mandatory. It is worth reading this section before signing the form. If you believe an optional insurance is being forced upon you, first submit a written application to the bank. If you don't get a result, you can go to a consumer arbitration board or consumer court.
Premium Refund if You Pay Off the Loan Early
If you have a prepaid life insurance policy during the credit period and you pay off the loan before maturity, you can request a refund of the premium for the remaining period. To do this, you need to contact the bank or insurance company to which the policy is linked. To learn about other costs of early repayment, you can request the current payoff amount from your bank.
In summary, distinguishing between mandatory and optional insurance when dealing with banks increases your negotiating power. Decide which insurance to obtain based on your needs, compare offers, and carefully read the insurance clauses in the contract before signing.
