Earthquake Insurance When Renting in Japan: Benefits and Taxes

When signing a lease for a house or apartment in Japan, the real estate agency almost always includes an insurance contract for you to sign. The premium depends on the company and the plan you choose. Many people simply transfer the money when the bill arrives, thinking it’s a mandatory procedure to get the keys, without looking closely at what the plan actually protects 😊.

Usually, the insurance policy signed by the tenant is only fire insurance for household belongings. If you don’t purchase separate earthquake insurance, and your belongings are burned or damaged due to tremors, the insurance won’t compensate a single yen. Understanding the boundary between these two types of insurance will help you better protect your assets, and you can even get an income tax deduction every year.

When renting: fire insurance for belongings is usually a contract condition

According to the housing rental guide for foreigners by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), buying insurance is a common procedure when signing a rental contract in Japan.

When renting, the building structure, such as pillars, load-bearing walls, or ceilings, is the landlord’s responsibility. The insurance policy purchased in the tenant’s name is called fire insurance for household property, known in Japanese as 家財 (kazai, household belongings).

This plan primarily protects the personal items you bring into the room:

• Electronics: computers, televisions, refrigerators, washing machines, microwaves.
• Furniture: beds, desks and chairs, wardrobes.
• Daily necessities: bedding, clothes, pots, pans, bowls, and dishes.

Renter’s insurance also often includes clauses for compensating damages to the landlord or civil liability to others, for example, if washing machine water accidentally overflows to the floor below, or careless cooking causes a fire in the room. Please carefully read each clause in the agency’s contract to know exactly what the compensation limits are. During the process of renting a house in Japan, carefully checking the insurance premium section in the statement of important matters will help you prepare your finances more thoroughly before moving in.

Fire insurance does not cover fires or damage caused by earthquakes, tsunamis, or volcanoes

Many foreigners living in Japan often misunderstand this point. Quite a few people think that once they have bought fire insurance, known in Japanese as 火災保険 (kasai hoken), the insurance company will fully compensate them whenever the room catches fire.

But according to the Ministry of Finance (MOF) of Japan, conventional fire insurance does not cover fires originating from earthquakes. The same applies to houses damaged by tsunamis caused by earthquakes or volcanic eruptions.

Specifically, there are two cases where fire insurance will refuse to pay:

• An earthquake knocks over a portable gas stove, tips over candles, or causes a short circuit, sparking a fire that burns down household belongings.
• The neighboring building catches fire due to an earthquake, and the flames spread to your building, burning your belongings as well.

Even if the fire spreads from a neighbor’s house, if the root cause is earthquake tremors, simple fire insurance will not compensate. If you want money to cover the cost of repurchasing belongings after these disasters, you must have additional earthquake insurance, known in Japanese as 地震保険 (jishin hoken).

地震保険: only purchased with fire insurance, can be added mid-term; 30% to 50% of fire insurance coverage; maximum of ¥10 million for belongings

Earthquake insurance in Japan operates under a very special mechanism: the government and private insurance companies jointly shoulder the risks to ensure enough funds for payouts during major disasters. Because of this nature, the regulations for participation are also very strict:

Cannot be purchased independently

You cannot buy a standalone earthquake insurance policy. The Ministry of Finance stipulates that 地震保険 can only be sold along with fire insurance. This means you must have a foundational fire insurance contract before you can add the earthquake coverage.

If you didn’t register for the earthquake portion when you first moved in to save on initial costs, you can still contact the insurance company to add 地震保険 to your current contract in the middle of your tenancy, without having to wait for the contract renewal.

Insurance amount limits

The coverage amount for 地震保険 cannot be chosen arbitrarily; it must be between 30% and 50% of the coverage amount of the main fire insurance contract.

In addition to this percentage, the law also sets a maximum ceiling for each category:

• For residential buildings: the maximum compensation limit is ¥50 million, which is intended for homeowners.
• For household belongings (家財): the maximum compensation limit is ¥10 million.

For example, if your fire insurance policy for belongings has a limit of ¥4 million, you can choose an earthquake insurance limit from ¥1.2 million (30%) to ¥2 million (50%). This money is intended to help people cover emergency living expenses and rebuild their lives after a disaster.

Certain special items are excluded from the coverage of household belongings: cash, savings books, valuable documents, cars, or jewelry, precious metals, gemstones, and antiques valued over ¥300,000 per item or set.

Payout based on 4 damage levels

Earthquake insurance does not pay out based on actual repair invoices or a flat rate for everyone. When an incident occurs, the insurance company will send an appraiser to the site to assess the level of damage according to a legally stipulated scale.

For contracts effective from January 1, 2017 onwards, damage to household belongings (家財) is divided into 4 assessment levels:

• Total loss, known in Japanese as 全損 (zenson).
• Large half loss, known in Japanese as 大半損 (taihanson).
• Small half loss, known in Japanese as 小半損 (shōhanson).
• Partial loss, known in Japanese as 一部損 (ichibuson).

The insurance company will calculate the percentage of damage to all belongings based on their market value at the time of the earthquake to categorize them into one of the four groups above. Each level corresponds to a specific payout percentage relative to the insured amount you signed up for. If the actual damage falls below the threshold for 一部損, the company will not provide compensation.

Insurance will also deny compensation in cases of: intentional damage or serious legal violations, losses occurring more than 10 days after the earthquake, or theft during chaotic evacuation.

Earthquake insurance premium deduction during 年末調整/確定申告: maximum of ¥50,000

To encourage citizens to proactively prepare for natural disaster risks, the National Tax Agency allows taxpayers to deduct the earthquake insurance premiums paid during the year when calculating income tax. This deduction is called 地震保険料控除 (jishin hokenryō kōjo, earthquake insurance premium deduction).

Remember to distinguish clearly here: ordinary fire insurance premiums are not tax-deductible. Only the specific portion paid for earthquake insurance is eligible for the deduction.

The annual income tax deduction is calculated as follows:

• If your annual earthquake insurance premium is ¥50,000 or less: you can deduct the full amount paid from your taxable income.
• If you pay more than ¥50,000 for the year: the fixed deduction is ¥50,000.
• The maximum income tax deduction for this category is ¥50,000 per year.

Around October or November every year, the insurance company will send a payment certificate to your mailbox, called 地震保険料控除証明書 (jishin hokenryō kōjo shōmeisho). You keep this paper to complete the procedure in two ways:

1. Year-end tax adjustment at your company, or 年末調整 (nenmatsu chōsei): attach the certificate to the insurance deduction form and submit it to the HR department. The refunded tax will be paid directly with your December or January salary of the following year.
2. Filing taxes independently at the tax office, or 確定申告 (kakutei shinkoku): freelancers or those who missed the company deadline can enclose this certificate with their income tax return and submit it to the tax office.

Checklist to review your contract and protection level

In Japan, there is always a risk of earthquakes occurring at any time, especially with major forecasts like the Nankai Trough earthquake. You should spare about ten minutes to review your room’s insurance documents.

1. Recheck your current insurance policy:

Find the insurance contract you signed when you moved in. Check if the contract name includes the word 地震保険, or if it only says 火災保険. If you only have fire insurance, your household belongings are not protected in the event of an earthquake.

1. Recalculate your household belongings limit:

Try to roughly estimate the value of the large items in your room: computers, home appliances, washing machine, and warm winter clothes. See if your belongings insurance limit is set too high or too low. Keep in mind that the maximum earthquake insurance limit for belongings is ¥10 million and cannot exceed 50% of the fire insurance amount.

1. Purchase additional earthquake insurance if you don’t have it:

If your home contract doesn’t have 地震保険, simply call the hotline of the insurance company handling your room to request a mid-term addition. The premium is usually paid annually or in a lump sum for the contract term.

1. Keep documents to claim tax deductions:

Carefully store the invoice or premium payment certificate sent in autumn. Remember to submit it during the company’s year-end tax adjustment period to receive your tax refund.

References

• 地震保険制度の概要, Ministry of Finance (財務省)
• No.1145 地震保険料控除, National Tax Agency (国税庁)
• 外国人の民間賃貸住宅への円滑な入居について（部屋探しのガイドブック）, Ministry of Land, Infrastructure, Transport and Tourism (国土交通省)

Last updated: September 30, 2026. Regulations and fees are subject to change, please double-check the official sources above before proceeding with any procedures.