Housing insurance is offered by housing defect warranty liability insurance companies (insurers) that have been designated by the Minister of the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). As of February 2013, there are 5 insurers.
Housing suppliers who selected to take out insurance, not the monetary deposit method, have a choice of the insurer.
An insurance contract is concluded when insurance premium is paid to a housing insurance company. When a defect is found in a covered parts of a house and its housing supplier (the insured) carries out a repair work, its cost will be covered by the insurance. In cases where the insured is unable to carry out the repair work due to bankrupt or other reasons, the house owner can make an insurance claim and receive the insurance money.
Houses are all different, and construction work has lots of influence on their quality. Needless to say, they are very expensive. Therefore, site inspection by professionals such as 1st-class Kenchikushi is critical for offering an insurance coverage. AHWI members, housing insurance companies, have been designated by the Minister of MLIT as deemed to have capabilities for conducting proper site inspections.
Outline of the housing insurance
|Where to apply||Housing insurance companies designated by the Minister of MLIT|
|Insurance premium||Differs depending on a housing insurance company.
(Maximum amount of
|¥20 million per one claim (optional setup is available)|
|Compensation rate||1.80% or more for the housing supplier
2.100% for the home owner when the housing supplier is
ankrupt e.g.) insurance payment when the repair cost is \1 million
In the case of 1:
(¥1 million – ¥100,000 [※]) x 80％=¥720,000
In the case of 2:
(¥1 million – ¥100,000 [※]) x 100％ = ¥900,000
|Insurable value||1.Direct cost of repair
2.Cost of investigation (10% of the repair cost or ¥10,000, whichever is the greater), which should be equal or smaller than ¥500,000
3.Temporary accommodation / removal expenses (maximum of ¥500,000)
Some housing insurance company covers the cost to claim a right to indemnification or the cost of litigation.