The Insurance and Private Pension Regulation and Supervision Agency of Türkiye published an information guide on Building Completion Insurance (Bina Tamamlama Sigortası, BTS), explaining how the product works as a surety-type insurance and how it protects landowners and consumers in construction projects, particularly urban transformation and prepaid off-plan housing sales. The guide sets out when BTS or alternative security is required, including before a building permit is obtained for projects under Law No. 6306 and, for prepaid housing sales under Law No. 6502, before sales start in projects with 30 or more units. Protection is provided through individual guarantee certificates (teminat senedi) issued to beneficiaries, with insurers required to deliver certificates to landowners once the building permit is obtained and floor easement is established, and to consumers after the sale is completed, with coverage for consumers starting after the withdrawal period ends. BTS responds where the contractor or seller goes bankrupt, dies with heirs rejecting the inheritance, or fails to complete and deliver within 12 months after the applicable maximum period or the promised delivery date, and the insurer may either pay cash or complete the project, subject to specified delivery timelines of up to 24 months. Cash compensation for landowners is capped by the maximum guarantee limit adjusted by the New Housing Price Index (2017=100), while consumers receive repayment of bank-channel payments with legal interest or a statutory late-payment penalty, capped by the updated maximum limit; where the insurer opts to complete construction, monthly rent support may apply at 0.5% of the inflation-adjusted construction cost in the circumstances described. The guide also highlights how relevant administrations and beneficiaries should check policies and certificates, including verifying that the insurer is licensed for the surety line and using the Insurance Information and Monitoring Center’s Sigortam360 tools to confirm certificate and policy existence.
Insurance and Private Pension Regulation and Supervision Agency of Türkiye 2025-07-09
Insurance and Private Pension Regulation and Supervision Agency of Türkiye issues Building Completion Insurance guide for urban transformation and prepaid housing projects
Türkiye's Insurance and Private Pension Regulation and Supervision Agency released a guide on Building Completion Insurance (Bina Tamamlama Sigortası, BTS), a surety-type insurance for construction projects. It details BTS requirements or alternative security, guarantee certificate issuance, and insurer obligations in contractor defaults, including cash compensation or project completion. It advises verifying insurer licensing and policy validity via the Insurance Information and Monitoring Center’s Sigortam360 tools.