What is the average cost of fire insurance in Japan? This article explains the types of fire insurance and their coverage.
Many people are probably wondering about the average cost of fire insurance when signing a lease for a rental property in Japan.
This article explains the average cost of fire insurance in Japan. It also covers the scope of coverage and the types of fire insurance you should consider, so please use it as a reference.
1.What is fire insurance?
Fire insurance is insurance that compensates for damage to your home caused by "fire," "lightning," "explosion," "natural disasters" such as typhoons and heavy rain, and "theft."
While joining is generally optional, in rental properties, fire insurance is often a condition of the contract because it protects both the tenant and the landlord.
2.What is the average price for fire insurance in Japan?
How much does fire insurance actually cost in Japan?
Fire insurance premiums are determined by insurance companies based on various factors such as the age of the building, location, building structure, and coverage details. Therefore, insurance payouts vary significantly depending on whether it's a detached house, apartment, or rental property.
According to the "i-Insurance" fire insurance comparison website , the average annual fire insurance premium for rental properties is approximately 5,000 to 15,000 yen (*).
Research fire insurance policies from various insurance companies, compare them yourself, and make your own decision.
*This data was collected in June 2025 for reinforced concrete buildings in Tokyo with a one-year insurance period.
3.What is the liability and coverage for fires in rental properties?
The " Law Concerning Liability for Accidental Fires " stipulates that, even if a fire is caused by accident, unless there is intent or gross negligence, no one is liable for compensation for damages caused by the fire.
Examples of gross negligence include the following cases:
- In one case, a fire broke out because a bag of instant ramen noodles was placed next to a gas stove, and the stove was left unattended without being turned off.
- In one case, a bottle of gasoline was left unsealed near a burning kerosene stove, causing it to tip over, ignite the gasoline, and start a fire.
In the case of rental properties, if you cause damage to the landlord due to a fire caused by your negligence, you must compensate them.
However, in many cases, liability is not incurred for damage to adjacent rooms above, below, to the sides.
Coverage of fire insurance
Fire insurance also pays out insurance benefits for various disasters other than fire.
The basic coverage is as follows:
| Covered by compensation | Main cases |
| fire | Kitchen fires, careless handling of cigarettes, etc. |
| Lightning strike | Appliance malfunction |
| wind disaster | Roof tiles were blown off by the typhoon. |
| water disaster | Flooding |
| Water leak | Water leaking from the upper floor |
The actual scope of coverage varies depending on the insurance policy you choose, so it's necessary to check the details.
4.Types of fire insurance
It is generally recommended to subscribe to three types of fire insurance: "contents insurance," "tenant's liability insurance," and "personal liability insurance."
Now, let's discuss each type of insurance.
Home contents insurance
Home contents insurance is insurance that covers your belongings, such as furniture, appliances, and clothing.
A key feature is that you will be compensated even if you are caught in a fire started by someone else.
In addition to fire, the insurance also covers damage caused by lightning, wind, theft, and other incidents.
Tenant's Liability Insurance
Tenant's liability insurance is a type of insurance that compensates you for the costs of restoring a rental property to its original condition if you cause damage to it due to fire, water leaks, or other incidents.
As mentioned earlier, if a fire occurs, the tenant must compensate the landlord for damages. However, restoring a property to its original condition after a fire is often very expensive.
Therefore, when renting a property, it is often mandatory to have tenant liability insurance.
Personal liability insurance
Personal liability insurance is a type of insurance that provides coverage for damages that occur in daily life.
Examples of damages that can occur in daily life include the following cases:
- "I was riding my bicycle and hit a pedestrian."
- My child broke someone else's property while playing.
This type of insurance will compensate you for damages in such situations.
It's a good idea to have insurance to protect yourself in case of an emergency.
5.Summary: Fire insurance is almost essential for rental properties
In most rental properties in Japan, fire insurance is a condition of the contract.
The going rate is around 5,000 to 15,000 yen per year, and the coverage is broad, including not only fire but also lightning strikes, wind damage, flood damage, and water leaks.
By combining three types of insurance—contents insurance, tenant liability insurance, and personal liability insurance—you can protect both the tenant and the landlord.
Always check the coverage details before signing a contract and choose the insurance that best suits your needs.
