Earthquake Insurance in Japan: Complete Guide for 2025

Key Takeaways

Why it matters now: Frequent japan earthquake events and upcoming 2025 insurance system reforms make earthquake coverage critical for protecting your property in japan.

Contracts: About 21.48 million earthquake insurance policies are active (FY2022, a record high).

Coverage rate: Only ~35% of Japanese households carry earthquake insurance, leaving many families exposed.

Coverage limits: You can insure 30–50% of your fire insurance amount (up to ¥50M for the house and ¥10M for contents).

Requirement: Earthquake insurance must be bought together with fire insurance; fire insurance does not cover damage caused by earthquakes.

2025 change: Starting Sept 2025, new earthquake insurance policies must match the fire insurance policy term (no more auto-renewal options), so now is a good time to review your insurance plan.

Why Earthquake Insurance Matters in 2025

High seismic risk: Japan averages tens of strong earthquake events per year (roughly 17 earthquakes of magnitude 6.0–6.9 annually, plus occasional larger shocks). These frequent natural disasters put every household at risk of costly damage.

Low coverage gap: Yet nationwide only ≈35.1% of households have earthquake insurance. This means most families would face rebuilding costs on their own if disaster strikes.

Fire insurance does not cover earthquake damage: Standard fire insurance policies exclude earthquake/tsunami damage. Without earthquake coverage, a family's financial aid after a japan earthquake could be limited to general disaster relief.

Policy updates in 2025: Insurance companies in japan are revising earthquake insurance rules effective Sept 2025. New contracts will pair the earthquake insurance policy term exactly with the fire insurance policy term, eliminating the old "auto-renew" option. Families should use this change as a prompt to sign up or adjust coverage now.

What Is Earthquake Insurance?

– What it is: A special rider attached to a fire insurance policy that pays out for earthquake/volcano/tsunami damage to a home and belongings. It is voluntary but highly recommended for living in japan. Unlike fire insurance, it only covers losses caused by ground shaking or related events.

– Key fact: You cannot buy earthquake insurance on its own. It must be added to a fire insurance contract. (However, you can add it even mid-term – earthquake coverage can be set up partway through a fire insurance policy period.)

– Tip: Always add earthquake coverage whenever you take out a home insurance policy. If you skip it, even a major japan earthquake won't trigger any payout under your fire insurance policy.

Coverage and Payouts

– What's covered: The insurance covers your residential building (including condos) and household goods (furniture, appliances, clothing, etc.) against earthquake-related fire, collapse, burial, or washing away. Renters only insure their own "home contents" (家具家財) since the landlord's fire insurance policy covers the structure.

– Coverage limits: You choose the insured amount when buying the policy, subject to limits. By law the earthquake-insured sum must be 30–50% of the fire-insured sum (capped at ¥50 million for a building and ¥10 million for contents). Families should typically opt for the upper limit (50%) to ensure maximum aid.

– Payout rates: Claims are paid as a percentage of your insured amount based on damage severity. For example, if an earthquake totally destroys your home, you get 100% of the building's insured amount (up to the legal cap). Lesser damage yields smaller fixed payouts (≈60% for "mostly destroyed," 30% for "half-destroyed," etc.). Importantly, this is not actual repair cost reimbursement – it's a fixed percentage based on a damage assessment.

– Tip: Verify that your policy's insured amounts (for building and contents) match the full replacement value you want to cover. And remember that common household goods (TV, furniture, clothes, etc.) are covered, but high-value items like money, stocks, or valuables over ¥300k generally are not.

Who Can Enroll

– Residency requirements: Any person (including foreign residents) living in japan can buy earthquake insurance as long as they also hold a qualifying fire insurance policy. Foreign residents need a valid Japanese visa/residence status (not just a tourist/student visa) and typically a Japanese bank account for premium payments. Non-Japanese must also be able to understand basic Japanese (policy documents are Japanese).

– Property owners vs. renters: Homeowner or condo owners can insure their property and contents. Renters are still eligible — they simply insure only their own household goods, not the building (the landlord insures the structure).

– Family coverage: Any family members living in the insured home (spouse, children, other dependents) are covered under the policy. Make sure all co-owners or spouse names are listed if required by the insurer.

– Tip: Prepare necessary documents ahead of time: proof of address, identity (residence card for foreigners), and any property details (age of building, construction type). A foreigner should bring their 住民票 (Juminhyo residence record) if available, and ensure bank account info is on file.

Premiums and Discounts

– Calculating premiums: Earthquake insurance premiums are generally low (often a few thousand yen per year for average homes). Rates depend on location (higher in big earthquake zones) and your home's seismic rating. Tokyo's 30-year-old wooden house might pay about 0.1% of insured value annually, while newer reinforced homes pay less.

– Seismic performance discounts: Buildings with advanced earthquake-resistant features get steep discounts. For example, base-isolated or floating-frame homes can get ~50% off their earthquake insurance premium. Even certified 耐震等級3 (Grade 3 seismic performance) homes get ~50% off, Grade 2 ~30%, Grade 1 ~10%. Older homes can also qualify for a ~10% "age" discount.

– Long-term contract discount: Buying multi-year coverage yields a lower per-year cost. For example, a 5-year policy costs roughly 4.7 times the 1-year premium (not 5×), giving about a 6% discount overall. Insurance companies offer discount factors for 3- to 10-year terms.

– Tax deduction: Earthquake insurance premiums are tax-deductible on your income tax (up to ¥50,000 per year). This indirect benefit helps families save on the effective insurance costs.

– Tip: Ask your insurer about all applicable discounts. If you're buying property, aim to meet higher seismic standards. Also compare 1-year vs. 5-year quotes – the long-term deal often saves money in the long run.

How to Buy Property Insurance in Japan

– Step 1: Have fire insurance: First ensure you have (or will take) a fire insurance policy on your home or rented-flat contents. Most insurance companies bundle earthquake insurance as an optional rider to fire insurance.

– Step 2: Gather information: Collect property details (location, building age, construction type) and a list of household goods (for contents). Foreign residents should have their residence card and any required proof of income/identity ready.

– Step 3: Contact insurance companies or agents: Reach out to a non-life insurance company or a qualified agent. You can use online tools or ask your real estate agent for recommendations. Many companies (Sompo, Tokio Marine, Mitsui Sumitomo, etc.) offer earthquake insurance.

– Step 4: Choose coverage: Decide on the insured amounts. As a practical tip, set each (building and contents) to the maximum you need, up to the legal limits (50% of fire coverage). Also choose your policy term (consider a 5-year insurance plan for a discount).

– Step 5: Complete the application: The insurer will request application details. You'll pay the insurance premium (usually annually or multi-year up front, often together with the fire insurance premium).

– Step 6: Review and keep documents: Once signed, save all policy documents and receipts. Take inventory photos of your major belongings — this will make claims smoother. Make note of important details like your policy number and the extent of coverage.

– Tip: If you're a foreigner unsure about Japanese paperwork, consider using an english speaking agent. Also remember: you can add earthquake coverage anytime during your fire insurance policy term if you forgot at the outset.

Best Practices

Don't skip coverage: The biggest mistake is having no earthquake insurance. If an earthquake severely damages your home, lack of insurance can mean crippling debt or loss of shelter.
Mitigation: Always include earthquake coverage when buying fire insurance – it costs relatively little for the protection it provides.

Avoid underinsurance: Some homeowner only insure a small percentage of their home's value. This means even a total loss won't yield enough payout to rebuild fully.
Mitigation: Set your earthquake-insured amount near the legal maximum (50% of the home's replacement cost). Treat the policy as essential collateral.

Use discounts and deductions: Forgetting discounts wastes money. For example, if your house qualifies for a seismic-grade discount, not applying it means overpaying.
Mitigation: Check all discount options (seismic performance, long-term policy) before you buy. Also claim the ¥50K/year tax deduction for earthquake premiums when filing taxes.

Keep insurance policies current: Under new rules, your earthquake insurance policy term must match your fire insurance policy. Mismatched renewal periods could lead to coverage gaps.
Mitigation: Mark your calendar for renewal dates and coordinate with your agent to renew both together.

Risk/Mistake Table

Risk/Mistake	Impact	How to Avoid It
No earthquake insurance	Full rebuilding cost falls on you	Always add earthquake coverage to your fire insurance
Low insured amount	Insurance payout won't cover repair costs	Insure at ~50% of your home's value (max limits)
Ignoring available discounts	Paying higher premiums than necessary	Apply base-isolation/耐震 discounts and choose long-term plans

Checklist

✓ Assess your risk and need. Do you own or rent in an earthquake-prone area? Calculate the value of your home and contents.
✓ Confirm fire insurance setup. Ensure you have or will purchase a qualifying fire insurance policy (earthquake insurance can't stand alone).
✓ Verify eligibility. For foreign residents: prepare your residence card, Japanese bank account, and any required documentation (住民票, etc.). For homeowner/renters: confirm your names and property details.
✓ Get quotes. Contact insurance companies or agents for earthquake insurance quotes. Compare coverage limits, premiums, and discounts.
✓ Set coverage amounts. Choose insured amounts for building and contents (ideally at the high end allowed, e.g. 50% of fire coverage). Decide on policy term (longer terms often save money).
✓ Apply for the policy. Submit your application and pay the premium (often bundled with fire insurance). Review all policy terms carefully, especially payout conditions.
✓ Document your home. Keep copies of your policy, receipts, and an inventory of valuables (photos are very useful). This will expedite any future claim.
✓ Review regularly. Update the policy if you renovate, move, or add valuable items. Mark renewal dates and ensure you renew earthquake coverage in tandem with fire insurance.

FAQ

Q1: What does earthquake insurance cover and how is it different from fire insurance?
Earthquake insurance covers damage from earthquakes, volcanic eruptions, or tsunami (fire, collapse, burial, etc.) for your home and contents. Unlike standard fire insurance, it pays out fixed percentages of the insured amount based on the extent of damage—not the actual repair costs. Fire insurance alone does not cover earthquake damage.

Q2: Can foreign residents living in japan buy earthquake insurance?
Yes. Foreign residents with valid visas and a Japanese address can enroll in earthquake insurance as long as they also have fire insurance. A Japanese bank account is typically required.

Q3: If I'm renting, should I get earthquake insurance?
Yes. Renters can't insure the building itself (that's the landlord's job), but you can and should insure your personal belongings—furniture, appliances, and other items—against earthquake loss by adding the rider to your contents/fire insurance policy.

Q4: How much earthquake coverage do I need?
You can insure 30–50% of your fire insurance sum (up to ¥50 million for a house, ¥10 million for contents). Most experts recommend the maximum for best protection.

Q5: Are earthquake insurance premiums tax-deductible?
Yes. You can deduct up to ¥50,000 per year in earthquake insurance premiums from your taxable income.

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• Bunkyo Real Estate 2025: Why Tokyo's Academic District Is a Smart Investment — Analyzes Tokyo's family-friendly districts and housing trends, offering insight for homeowner planning their long-term finances.

Conclusion

Earthquake insurance provides a vital financial safety net for families in Japan's seismically active environment. By understanding your eligibility, coverage limits, and how to apply, you can secure your home and possessions so that a future japan earthquake does not devastate your family's livelihood.

Written by Dimash Nurzhau, a real estate marketing specialist based in Tokyo. Dimash creates content that helps international residents navigate Japan’s housing market with clarity and confidence.