Renter's Insurance (a.k.a. Fire Insurance) in Japan
Arranging renter's insurance (typically referred to as Fire Insurance) may not be on the top of your to-do list when relocating to Japan, and in your home country it may even be considered optional. However, in Japan it is often a necessary requirement when renting a property.
Here is a quick breakdown of what to expect from housing insurance here in Japan.
Why do I need (fire) insurance?
Landlords and management companies will typically require that the tenant sign up for fire insurance if they are going to rent their property. If you don't want to take out insurance for whatever reason, then you are unlikely to be able to rent in Japan. In a country with natural disasters such as earthquakes, heavy rain fall, flooding, etc., however infrequent they may be, damage could be caused not only to your personal belongings, but also to the property itself. You may have insurance in your own country which you think will cover you here in Japan, but management companies will only accept insurance from a Japanese company, so what you may already have won't be acceptable on its own, in the eyes of your landlord.
How much does renter's insurance cost in Japan?
This will depend on your property, level of coverage, and location. However, it's safe to assume that the price would be somewhere between approximately ￥15,000 for an apartment and ￥30,000 yen for a house, both for a mid-tier, two-year contract.
What exactly does my insurance cover?
Generally, fire insurance will cover damage to your personal belongings and to the property from things such as accidents in the home, flooding, theft, and of course, fire. This is referred to as "tenant liability insurance". In addition to your home and its contents, Japanese fire insurance also covers "personal liability" as well, which will cover you in accidents involving yourself and others inside or outside of the home.
Japan has a lot of earthquakes. Is that covered?
Yes and no. Earthquake insurance is not included in standard fire insurance, so you’ll want to make sure that it’s included in your contract. This will cover you for incidents such as above that are a result of an earthquake, which otherwise would not be covered.
My company told me they'll arrange the Insurance. Do I have to do anything?
Some companies offer blanket insurance to transferees from abroad, or may have their own preferred housing insurance company that they will use and arrange on your behalf. If that's the case, then usually you won't have to do anything as long as the company's coverage plan is acceptable to the landlord. It's always important to know that if your company does not cover this fee, it will be expected that you will cover the costs yourself. You may also want to discuss with your company what is covered if you are interested in adding extra insurance on top of what they already offer.
Where can I find more information?
Below are some links to some other helpful websites that will give you more detailed information and contacts for insurance professionals.
- Ministry of Finance
- Chubb (Insurance Company)
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