Many people start apartment management while keeping in mind that there are various risks involved.
Among these risks is the "risk of disasters."
Japan is known as a "earthquake-prone country," so it is important to understand the risks and countermeasures against earthquakes before starting apartment management.
Therefore, this article introduces countermeasures against earthquakes in apartment management.
Since it also covers topics ranging from the seismic performance of buildings to earthquake insurance, please use this as a reference if you want to avoid the various risks caused by earthquakes as much as possible.
Seismic Performance and Seismic Grades That Landlords Should Know
When understanding the risks of earthquakes, it is also important to understand the seismic performance and seismic grades of buildings.
Understanding earthquake-related laws and building structures will also be useful when rebuilding or purchasing a new apartment.
First, let's explain the laws related to seismic resistance.
What Is the Building Standards Act?
There are two types of laws related to seismic resistance: the "Building Standards Act" and the "Act on Promotion of Ensuring Quality Housing (Housing Quality Assurance Act)."
In particular, the Building Standards Act is an important law that establishes standards not only for seismic resistance but also for the structure, site, equipment, and use of buildings.
Building Damage Rate from the Great Hanshin-Awaji Earthquake
The Building Standards Act was originally enacted in 1950.
It was then revised in June 1981, with the goal of constructing buildings that show virtually no damage in moderate earthquakes (approximately seismic intensity 5-upper) and do not risk collapse in major earthquakes (seismic intensity 6-upper to 7).
Fourteen years after the new seismic standards were established through this revision, the Great Hanshin-Awaji Earthquake struck in 1995, causing many homes and buildings to collapse.
However, most of the collapsed buildings were constructed under the old seismic standards, and it was found that more than 70% of buildings constructed under the new seismic standards suffered no damage or only minor damage.
Of course, some buildings constructed under the new seismic standards also suffered moderate or severe damage (collapse), but it became clear that damage could be significantly reduced.
Revised to Current Standards in June 2000
The seismic standards under the Building Standards Act were further revised in June 2000.
Under the new standards, in addition to requiring that buildings not collapse or crumble in a major earthquake, "ultimate strength calculation" was made mandatory.
Ultimate strength calculation refers to calculating an index of how much a structure can withstand seismic forces when an earthquake occurs.
In addition, ultimate strength calculation also clarified how much resistance a building has against external forces other than earthquakes, such as heavy snow and strong winds.
What Is the Housing Quality Assurance Act?
The Housing Quality Assurance Act is a law that establishes standards for displaying housing performance and an evaluation system based on those standards, and was enacted to protect consumers from housing disputes.
A Law Establishing Three Systems
The Housing Quality Assurance Act specifically establishes three systems.
・Housing Performance Indication System (Housing Performance Evaluation)
・Dispute Resolution System Specialized for Housing
・Mandatory 10-Year Defect Insurance Coverage Period for New Homes
The Housing Performance Indication System is a system designed to make it easier for consumers to understand what kind of performance a property has by having a third party evaluate the housing performance.
While evaluation itself is voluntary, having received an evaluation leads to the trust that "a third-party performance evaluation has been conducted."
In addition, if a defect or flaw is found after delivery and a dispute arises with the seller, it is also possible to request dispute resolution through a designated housing dispute resolution agency. Furthermore, the mandatory 10-year defect insurance coverage period means that if a defect is found within 10 years of a new home, free repairs and other remedies are required.
Seismic Grades Under the Housing Quality Assurance Act
The Housing Quality Assurance Act also establishes seismic grades.
Seismic grades range from 1 to 3, and each differs in terms of resistance to collapse and damage, as well as the type of property.
・Seismic Grade 1
Seismic Grade 1 is the basic grade that meets the seismic performance standards set by the Building Standards Act.
While it is the lowest grade, this does not mean its seismic performance is weak.
It is equipped with enough seismic performance to withstand earthquakes of seismic intensity 6-upper to 7.
・Seismic Grade 2
Seismic Grade 2 certifies that a building has 1.25 times the seismic resistance of the standards set by the Building Standards Act.
It reduces the risk of collapse even in an earthquake 1.25 times stronger than what Grade 1 can withstand.
Buildings that are primarily used as evacuation sites during disasters, such as schools, hospitals, and government offices, must be constructed to Grade 2 or higher.
・Seismic Grade 3
Seismic Grade 3 boasts 1.5 times the strength of the seismic performance standards set by the Building Standards Act.
Buildings such as police stations and fire stations, which tend to serve as rescue and reconstruction bases during disasters, are often constructed to Grade 3 standards.
Seismic grades certify that a building has high seismic performance, but in order to actually certify the grade, an inspection must be conducted by a housing performance evaluation agency designated by the Ministry of Land, Infrastructure, Transport and Tourism.
Keep in mind that inspection and application fees of approximately 200,000 to 300,000 yen will be required.
Structural Features for Protecting Apartments from Earthquakes
The seismic resistance of a building is also greatly affected by differences in structure.
Next, let's introduce the features of earthquake-resistant, vibration-controlled, and seismically isolated structures found in apartments.
Earthquake-Resistant Structure
Earthquake-resistant structures are found in ordinary homes as well, and refer to structures that withstand the shaking of an earthquake by installing bracing and similar elements.
Earthquake-resistant structures are resistant not only to earthquakes but also to shaking from strong winds such as typhoons, and since most homes already have this structure, there is no additional cost to implement it.
However, while it can withstand earthquake shaking, the shaking is transmitted directly to the building, and a disadvantage is that damage worsens with each earthquake.
The shaking of the building also makes furniture more likely to topple.
Vibration-Controlled Structure
A vibration-controlled structure is one in which vibration control devices are installed inside walls and similar locations to absorb and suppress earthquake shaking.
Compared to earthquake-resistant structures, building shaking is reduced, particularly on the second floor and above.
The advantages are that it is resistant to strong winds and absorbs building movement, resulting in less damage.
However, since vibration control devices are installed in ordinary buildings, the cost is higher than standard construction costs.
Note also that installing vibration control devices may impose design constraints.
Seismically Isolated Structure
A seismically isolated structure is one in which seismic isolation devices are installed between the building and the foundation, making it difficult for earthquake shaking to be transmitted directly to the building.
It is particularly effective at suppressing horizontal shaking and can greatly reduce building damage.
It also significantly reduces furniture toppling regardless of floor level.
However, in addition to the high installation cost, the fact that seismic isolation devices are installed in the foundation means the building is more susceptible to strong winds, and rooms on the second floor and above may still feel shaking.
Also, since seismic isolation devices are difficult to install on weak ground, the land must also be carefully considered if you want to build an apartment with seismic isolation.
Furthermore, unlike other structures, since the devices are installed under the floor, it is also difficult to have a basement.
Potential Troubles After an Earthquake and How to Handle Them
In the event of a major earthquake, various troubles can occur in apartment management.
How should you deal with the troubles that may arise after an earthquake?
Here we introduce potential troubles after an earthquake and how to address them.
Lease Agreements When an Apartment Is Completely Destroyed
If a major earthquake completely destroys the apartment you are managing, what happens to the lease agreements with tenants?
In principle, if a building ceases to exist, the lease agreement is terminated regardless of the cause.
This is because the purpose of a lease agreement is to rent out a room, and if the building is completely destroyed, that purpose can no longer be fulfilled.
When a lease agreement is terminated, rental income also stops.
Even if the apartment is not destroyed but an evacuation order or designated warning zone is issued and the lease agreement is inevitably terminated, rent cannot be claimed.
If the tenant evacuates voluntarily, full rent can be claimed, but otherwise understand that rent cannot be claimed.
Accommodation Costs for Tenants' Temporary Housing
If an apartment is damaged by an earthquake and temporarily becomes uninhabitable, should the landlord pay for the tenant's temporary housing?
If a property becomes temporarily uninhabitable due to a natural disaster, it does not fall under the landlord's intentional or negligent actions, so there is no obligation to pay for temporary housing.
This also applies when temporary housing is needed while the apartment is being repaired.
Although not legally required, some landlords provide a certain amount of sympathy money so that tenants will continue to live there after repairs.
Liability for Damage to Tenants' Belongings
Many landlords may worry about whether they have liability for damages if an earthquake occurs without visible damage to the apartment itself but a tenant's belongings are damaged.
From a legal standpoint, the landlord does not bear that level of responsibility.
Since household contents insurance taken out by tenants covers damage to belongings, the thinking is that the landlord does not need to compensate personally.
However, depending on the circumstances, it cannot be denied that a claim for damages could be made on the grounds that the landlord neglected building safety management.
Fire Spreading from a Neighboring House to an Apartment Due to an Earthquake
Earthquakes not only damage buildings but also increase the risk of fire.
What happens if a fire breaks out in a neighboring house due to an earthquake and spreads to an apartment?
In this case, since the building ceases to exist, the lease agreement is terminated.
The security deposit must be returned to tenants and contract cancellation procedures must be carried out.
Since the fire in this case was caused by an earthquake, it is difficult to consider the neighboring house to have been grossly negligent, and it would also be difficult to hold them responsible for the fire spreading.
In this situation, compensation would come from the fire insurance the landlord has taken out.
Responsibility When a Block Wall Collapses and Causes Injury
If a block wall installed on the apartment premises collapses due to an earthquake and someone is injured, the landlord's responsibility depends on whether there was a defect in the block wall itself.
Basically, since it is on the apartment premises, the landlord as the owner must compensate the victim.
However, if the block wall violated the height or structural standards of the Building Standards Act from the start, the administrative authority that allowed such a violation to persist would be held responsible.
Also, if the landlord was unaware of the defect, the construction company that built the block wall would bear responsibility.
However, even if the landlord was unaware of the defect, the likelihood that insurance will apply is low.
Therefore, if your apartment has a block wall on the premises, inspect and maintain it regularly to prevent injuries in the event of an earthquake.
Who Bears Repair Costs After an Earthquake?
If an apartment is damaged by an earthquake, who bears the repair costs?
The burden of repair costs varies depending on the situation, such as whether the building is damaged, whether belongings are damaged, or whether the apartment collapses in the earthquake.
Let's look at who bears the repair costs in each situation.
When the Building Is Damaged
When a building is damaged by an earthquake, the landlord is basically responsible for bearing the repair costs.
This is stipulated in Article 606 of the Civil Code.
The law requires "necessary repairs," which means restoring the property to a state where it does not interfere with daily living.
This also applies only to damage caused by force majeure such as natural disasters.
Cases where a tenant uses heating equipment in a prohibited area and it catches fire, or where a tenant places plants that could easily fall on the balcony and a window breaks, are not covered.
If the tenant is found to be at fault, it may become the tenant's responsibility.
In the event of an earthquake that causes damage, the tenant must promptly contact the landlord.
This is because if contact is not made promptly, it becomes impossible to determine whether the cause was the earthquake or something else.
Make sure to share your contact information with tenants so they can reach you quickly.
When Belongings Are Damaged
When belongings brought in by a tenant are damaged, the tenant bears the cost.
Medical expenses if the tenant is injured are also the tenant's responsibility.
However, if the damage to belongings or injuries is deemed to be the landlord's fault, the landlord must bear the repair and medical costs.
An example would be a case where the landlord had neglected to repair a window as requested by the tenant, an earthquake occurred, the window broke, and the tenant's belongings were damaged.
If earthquake insurance is included in the fire insurance taken out at the time of the lease agreement, damage to household belongings can be covered.
Be sure to also tell tenants to contact the insurance company immediately if they suffer damage.
What If the Apartment Collapses in an Earthquake?
Apartments are basically constructed in accordance with the new seismic standards.
If these standards are met, there is a low possibility of damage in earthquakes of seismic intensity 5 or below, and a high probability of avoiding collapse even in earthquakes of seismic intensity 6-upper to 7.
Even buildings constructed before these standards may have performance equivalent to the new seismic standards.
Many buildings have also undergone reinforcement work to meet seismic standards.
If you own an older apartment, reinforcement work should be carried out before a major earthquake occurs.
Even so, the risk of collapse in an earthquake cannot be completely ruled out.
When an apartment collapses, the housing it provided ceases to exist, so the lease agreement is also terminated.
Even when the contract is terminated, tenants are considered unable to claim damages from the landlord.
This is because an earthquake is an event that even the landlord cannot predict, and the landlord cannot be said to be at fault.
How to Investigate Disaster Risks for Apartments
Disaster risks are an inevitable part of apartment management.
Therefore, it is necessary to understand in advance what risks exist and consider countermeasures. Let's explain how to investigate disaster risks in apartment management.
Check Hazard Maps
A hazard map is a map showing evacuation sites, evacuation routes, and disaster prevention facilities to help prevent damage from natural disasters before it occurs.
There are also types such as tsunami hazard maps and flood hazard maps.
All of these can be checked on the official websites of the Ministry of Land, Infrastructure, Transport and Tourism and local governments.
Hazard maps allow you to understand the level of risk in your apartment management, so check them as much as possible before purchasing a property.
If you are purchasing land to build a new apartment, they also serve as a guide for selecting low-risk locations.
Check Shaking Susceptibility Maps
There is also a "shaking susceptibility map" that shows how susceptible an area is to shaking during an earthquake.
Even at the same seismic intensity, some locations within a municipality are more prone to shaking than others due to differences in ground conditions.
When managing an apartment, try to choose areas that are as resistant to shaking as possible.
Strong ground that resists shaking may reduce potential damage accordingly.
Since damage may still occur, it is also recommended to consider the content of earthquake insurance.
Consult with a Contractor
House builders and construction companies have built many single-family homes and apartments over the years.
They often also have information on what kind of damage their buildings have sustained in earthquakes.
In other words, ask contractors about what kind of damage has occurred in past earthquakes.
Knowing the disaster history of the area where you plan to build an apartment makes it easier to take disaster countermeasures.
Should You Get Earthquake Insurance for Apartment Management?
Many landlords are undecided about whether to take out earthquake insurance when managing an apartment.
Japan is an earthquake-prone country, but earthquakes strong enough to cause major damage only occur once every several years.
This is why landlords hesitate about taking out earthquake insurance.
So next, let's answer the question of whether earthquake insurance is necessary for apartment management.
Can Fire Insurance Cover Earthquake Damage?
When an earthquake occurs, fires can also break out.
Some people may think fire insurance can handle fires.
However, fires caused by earthquakes and building damage due to earthquakes cannot be covered by fire insurance.
Without earthquake insurance, insurance benefits will not be paid.
Note also that earthquake insurance cannot be taken out independently.
Since it can only be added as a rider to fire insurance, it is advisable to take out both fire insurance and earthquake insurance together.
Peace of Mind with Earthquake Insurance!
With both fire insurance and earthquake insurance, you can receive compensation even if you suffer damage from an earthquake.
Since fire insurance alone cannot cover everything, taking out earthquake insurance is essential to reduce the burden on landlords.
Japan is an earthquake-prone country, so you never know when you might be hit by a major earthquake.
By taking out insurance in preparation for emergencies, you won't be in trouble when you need compensation.
Coverage of Earthquake Insurance
Earthquake insurance covers residential buildings and all household contents within those buildings.
Buildings and household contents must each be insured separately.
Therefore, there are three possible enrollment patterns: building only, household contents only, or both building and household contents.
Buildings eligible for earthquake insurance are limited to residential buildings, including mixed-use residential and commercial buildings.
Factories and buildings used exclusively as offices are not eligible.
Gates, fences, and storage sheds can be included in the building contract.
However, note that if only a gate or fence is damaged, it will not be eligible for insurance payment.
Household contents within a building include movable items essential for daily living such as home appliances, furniture, clothing, and tableware.
It helps to think of what you would bring when moving.
Cars, plants and animals, and cash are not covered.
Key Points to Understand Before Taking Out Apartment Insurance
When taking out insurance for an apartment, the key is to carefully examine the policy content before enrolling.
However, there are many cases where landlords don't know which insurance is most suitable.
For landlords with such concerns, here are three key points to understand before taking out apartment insurance.
Types of Disasters Covered
The types of disasters covered by insurance is a point you must always confirm.
How much risk you prepare for varies greatly depending on your perspective.
While you naturally want to keep insurance premiums as low as possible, choose insurance that provides at least minimum coverage.
The selection approach varies, such as choosing insurance that covers flood damage for areas with flood risk, or insurance that covers tsunamis during earthquakes for coastal areas.
Check hazard maps carefully and thoroughly consider what kind of coverage you need before selecting insurance.
Special Riders for Further Risk Mitigation
Some insurance policies have special riders that can help avoid risks during disasters.
Insurance with comprehensive riders can broadly cover losses during a disaster.
A rental income rider compensates for rental income that would have been earned when a long-term vacancy occurs due to a disaster.
A facility liability rider covers unexpected situations such as apartment roofing or walls blown off by strong winds damaging a neighboring house.
Since risks are inevitable in apartment management, consider using special riders as well.
Understanding How Insurance Benefits Are Set
When taking out insurance, understanding how insurance benefits are set is also an important point.
There are two types of benefit settings: replacement cost (new price) and actual cash value method.
Replacement cost considers how much it would cost to buy a new apartment equivalent to the damaged property and sets the insurance benefit accordingly.
Therefore, you can expect to receive nearly the full amount needed for rebuilding or repairs.
On the other hand, the actual cash value method pays insurance benefits that account for depreciation from the time of construction to the time of the disaster.
Therefore, the amount received will be less than the replacement cost.
There is also a high possibility that insurance alone will not cover all costs needed for rebuilding or repairs.
For older apartments, be careful with actual cash value method insurance.
Conduct Seismic Inspections for Older Apartments!
If you are managing an older apartment, it is recommended to conduct a seismic inspection.
Finally, let's explain the necessity of seismic inspections and how to respond if defects are found.
Is a Seismic Inspection Mandatory?
Older apartments are required to present the results and status of seismic inspections.
Therefore, it can be said to be mandatory.
Important matters must be explained to tenants, and since 2006, whether a seismic inspection has been conducted has been included in the required explanation.
Therefore, seismic inspections should be carried out.
However, this obligation applies to properties built under the old seismic standards.
Apartments built under the new seismic standards are considered safe from collapse even in earthquakes of seismic intensity 6-upper to 7.
Because of this difference in safety, apartments built under the new seismic standards are exempt from the important matters explanation requirement at the time of signing a lease agreement.
Liability for Damages When Defects Are Found
If an apartment collapses in an earthquake, there is a possibility that tenants or neighboring residents could be injured, or in the worst case, killed.
That is the situation most to be avoided in apartment management.
In such a situation, if the property had insufficient seismic performance, the landlord may be required to pay damages.
Defects that could cause an apartment to collapse can also be identified through a seismic inspection.
The older the apartment, the higher the risk of the worst-case scenario occurring, so seismic inspections should be conducted.
Notes on Conducting Apartment Seismic Inspections
There are points to keep in mind when conducting an apartment seismic inspection.
Here are three particularly important notes to know.
Hire a Reliable Contractor
Choose a reliable contractor for your seismic inspection.
Contractors registered with local government bodies, contractors with staff holding qualifications such as seismic inspection and seismic retrofit engineer, and contractors with extensive seismic inspection track records are recommended as they can be trusted.
If a contractor meets all three of these criteria, they are even more reliable.
There are also contractors running scam-like businesses, so it is dangerous to take the words of contractors who approach you at face value.
They may use fear tactics, but calmly assess who to hire.
Prepare the Necessary Documents
If you are having a seismic inspection done, don't forget to prepare the necessary documents.
What you need to have ready are the design documents and the inspection certificate.
Having these documents enables a more accurate inspection.
There may be cases where you don't have them on hand and cannot prepare them right away.
In such cases, contact the local government where the apartment is located or the house builder that constructed it.
Understand the Inspection Content
It is also recommended to understand the content of the seismic inspection.
A seismic inspection is divided into three stages: preliminary survey (document review), on-site survey, and seismic inspection numerical calculation.
In the preliminary survey, the inspection company reviews the design documents.
This is the phase where the level of seismic performance is assessed.
Based on the level, the necessary locations are inspected and a rough estimate is produced.
The on-site survey is conducted to check the actual conditions and confirm seismic performance more accurately.
It includes a visual deterioration survey, comparison with floor plans, checking the conditions of the site and surroundings, and chipping inspection.
The chipping inspection is conducted when there are no structural drawings to check the number and size of each structural member.
Finally, the presence or absence of seismic performance is calculated, and an overall evaluation and recommendations for necessary seismic retrofitting work are provided.
Summary
The likelihood of experiencing earthquake damage while managing an apartment is very high.
Since major disasters can occur, thorough countermeasures must be taken.
If a landlord neglects efforts to improve the seismic performance of their apartment and it collapses, there is a real possibility of fatalities.
This could lead to claims for damages.
To prevent the worst-case scenario, take measures such as retrofitting apartments for seismic performance and taking out earthquake insurance.
For older apartments, don't forget to also conduct seismic inspections.
Frequently Asked Questions About Earthquake Preparedness for Apartment Management
Q1. How much does earthquake insurance cost?
Earthquake insurance premiums are determined by the building structure and location. For wooden apartments, a rough guide is 30–50% of the fire insurance premium.
Q2. Should I obtain Seismic Grade 3?
Seismic Grade 3 indicates the highest level of seismic performance and can lead to earthquake insurance discounts and peace of mind for tenants. It is worth considering at the time of new construction.
Q3. Who is responsible if a tenant is injured in an earthquake?
If there is a defect in the building's safety management, the landlord may be held responsible. Regular seismic inspections and proper maintenance are essential.
