Kasai hoken: fire insurance, the essential base
The kasai hoken (kasai hoken, fire insurance) is the foundation of any cover for a property in Japan. Despite its name, it goes well beyond fire: depending on the plan it covers fire, lightning, explosion, but also water damage, typhoons and high winds, hail, snow, sometimes theft and glass breakage.
Is it mandatory? Legally, no. In practice, yes: every lender requires it, and even in a cash purchase no sensible owner goes without it in a country so exposed to typhoons and floods. Condo management associations often require it too.
- Term: typically 1 to 5 years (long-term contracts have been shortened in recent years).
- Indemnity basis: the rebuilding value of the structure (land is never insured).
- Common options: liability cover, contents cover (furniture), assistance.
The insured amount must match the real rebuilding cost. For an older property or a renovation, cross-check with our article on the cost of renovating a machiya.
Jishin hoken: earthquake insurance, a state-run add-on
Crucial point: earthquakes are never covered by the kasai hoken alone. Damage from earthquakes — and from the tsunami and volcanic eruption they trigger — falls under jishin hoken (jishin hoken, earthquake insurance), a separate cover.
Its features, set by law and co-managed by the Japanese state (via the Ministry of Finance):
- It can only be taken out on top of a fire policy (never alone).
- Its amount is capped at 30–50% of the fire sum insured (e.g. structure insured for ¥20M → earthquake ¥6–10M maximum).
- It indemnifies partially: the goal is to help you get back on your feet, not to rebuild identically.
- Rates are identical across insurers for the same zone and structure (public tariff), because the state reinsures part of the risk.
Payouts follow tiers based on assessed severity (total / major / partial / minor damage). Do not count on it for a full rebuild: it is a safety net, not a blank cheque. Hence the importance of seismic compliance (1981 standard).
Price: what makes the premium vary
The premium depends on several factors. Here are the main levers, with conservative orders of magnitude (to confirm with a quote, as every property is unique).
| Factor | Effect on premium |
|---|---|
| Geographic zone (prefecture) | Strong — Tokyo, Kanagawa, coastal areas = pricier (earthquake) |
| Building structure | Concrete / steel (RC・鉄骨) cheaper than wood (mokuzō) |
| Age & seismic compliance | Post-1981 (shin-taishin) property = possible discounts |
| Insured amount (building value) | Proportional |
| Optional cover (water, theft, liability) | Each option adds to the cost |
| Contract term | Multi-year contracts often better value |
As a rough guide, for a small flat a kasai hoken may run to a few tens of thousands of yen a year (a few hundred euros, ~¥150/€), and adding the jishin hoken noticeably raises the bill, especially for wood in a high-risk zone. A reinforced-concrete, post-1981, out-of-hazard property pays markedly less. These costs feed into your budget: see our simulator and the article on purchase costs.
How to insure well as a foreigner
A few reflexes for a foreign buyer, often paying cash (a mortgage being reserved for salaried residents):
- Check the hazard map before buying: an address in a flood or liquefaction zone raises or complicates the insurance. See our article on natural hazards.
- Favour seismic compliance: a shin-taishin (post-1981) property is safer and sometimes cheaper to insure. That is the best pairing: compliant structure + jishin hoken.
- Size the insured amount on the real rebuilding value, not the purchase price (which includes the non-insurable land).
- Add water-damage and typhoon cover: these are the most frequent claims, well ahead of fire.
- Have the (Japanese) contract explained line by line — something our support handles.
Reminder: buying a property in Japan grants no visa (see buying without a visa), and purchase costs stay ≤ 6% — insurance being a separate recurring annual cost.
In short: the right insurance reflex
In Japan, insuring a property rests on two building blocks: kasai hoken (fire, all but mandatory, covers fire/water/typhoon) and jishin hoken (earthquake, optional, state-run, capped at 50% of the fire amount and paying out partially). The price varies with zone, structure, age and chosen cover.
The best setup: a seismically compliant (post-1981) property, out of hazard zones, insured at rebuilding value, with fire + water + typhoon, topped up with earthquake. To build your overall budget, use our simulator, browse our hand-picked properties and see how we support you through to the keys.
Frequently asked questions
Is home insurance mandatory in Japan?
Fire insurance (kasai hoken) is not mandatory by law, but in practice it is: every lender requires it and condo associations often demand it. Given the exposure to typhoons and floods, no sensible owner goes without it, even in a cash purchase.
Is earthquake covered by fire insurance?
No. Damage from earthquakes, tsunami and volcanic eruption is never covered by kasai hoken alone. You must take out earthquake insurance (jishin hoken) as an add-on — a separate cover managed by the Japanese state.
How much does jishin hoken earthquake insurance cost?
The rate is set by a public tariff, identical across insurers for the same zone and structure, because the state reinsures part of the risk. It depends heavily on the prefecture, construction type (wood costs more than concrete) and seismic compliance. Expect a notable extra premium for a wooden property in a high-risk zone.
How much does earthquake insurance pay out?
The earthquake insurable amount is capped at 30–50% of the fire sum insured. For example, a structure insured for ¥20M (~€133,000) gives a maximum ¥6–10M in earthquake cover. Payouts are partial and follow tiers based on damage severity: it is a safety net, not an identical rebuild.
Should you insure the land in Japan?
No, land is never insured: only the building's rebuilding value is covered. So size your insured amount on the structure's rebuilding cost, not on the purchase price, which includes the land.
Official sources
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