RetireJapan

William wrote: ↑Sat May 11, 2024 2:17 am Hello everyone,

I'm reaching out to inquire about your experiences with home insurance. Currently, I'm renting a place that I discovered years ago through イエブル. As part of my rental agreement, there's a mandatory insurance policy covering fire, water damage, and related issues. From what I gather, this seems to be a legal requirement here in Japan.

William wrote: ↑Sat May 11, 2024 2:17 am The cost of this insurance is, I think, super reasonable, at just ￥20,100 for a two-year period. However, as I approach renewal time, I've noticed that earthquake insurance is not included in this policy. They've made it explicitly clear.

I'm curious about your thoughts on the value of earthquake insurance, particularly for renters like myself. Additionally, I've heard that earthquake insurance expenses may qualify for deductions similar to iDeco contributions, potentially affecting one's annual tax return.

Tkydon wrote: ↑Sat May 11, 2024 3:40 am
All Insurance Premiums you pay can be deducted from your Taxable Income, either through Year End Tax Adjustment - Nenmatsu Chosei, or through Tax Filing - Kakutei Shinkoku, so you do not pay tax on those insurance Premiums, or looking at it another way, the government pays 30-50% of the premium with the taxes saved that you would have otherwise paid...

Beaglehound wrote: ↑Sat May 11, 2024 3:55 am

Tkydon wrote: ↑Sat May 11, 2024 3:40 am
All Insurance Premiums you pay can be deducted from your Taxable Income, either through Year End Tax Adjustment - Nenmatsu Chosei, or through Tax Filing - Kakutei Shinkoku, so you do not pay tax on those insurance Premiums, or looking at it another way, the government pays 30-50% of the premium with the taxes saved that you would have otherwise paid...

I was under the impression only earthquake insurance premiums were deductible, not the standard home insurance, and have been claiming that only. Are you sure that all insurance premiums are deductible?

Tkydon wrote: ↑Sat May 11, 2024 3:40 am

William wrote: ↑Sat May 11, 2024 2:17 am Hello everyone,

I'm reaching out to inquire about your experiences with home insurance. Currently, I'm renting a place that I discovered years ago through イエブル. As part of my rental agreement, there's a mandatory insurance policy covering fire, water damage, and related issues. From what I gather, this seems to be a legal requirement here in Japan.

Yes

William wrote: ↑Sat May 11, 2024 2:17 am The cost of this insurance is, I think, super reasonable, at just ￥20,100 for a two-year period. However, as I approach renewal time, I've noticed that earthquake insurance is not included in this policy. They've made it explicitly clear.

I'm curious about your thoughts on the value of earthquake insurance, particularly for renters like myself. Additionally, I've heard that earthquake insurance expenses may qualify for deductions similar to iDeco contributions, potentially affecting one's annual tax return.

If there is no Earthquake, it's a cost.
If there is an Earthquake, and you are displaced because your building is damaged, you would get some compensation...

Insurance Premiums, including:
Social Insurance Premiums (Health Insurance Premiums, Public Pension Contributions and iDeCo Contributions)
Small Enterprise Mutual Aid Contributions
Life Insurance Premiums
Earthquake Insurance Premiums

can be deducted from your Taxable Income, either through Year End Tax Adjustment - Nenmatsu Chosei, or through Tax Filing - Kakutei Shinkoku, so you do not pay tax on those insurance Premiums, or looking at it another way, the government pays 30-50% of the premium with the taxes saved that you would have otherwise paid...

Tkydon wrote: ↑Sat May 11, 2024 3:40 am If there is no Earthquake, it's a cost.
If there is an Earthquake, and you are displaced because your building is damaged, you would get some compensation...