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When you purchase real estate property in Japan, it is required to apply property insurance.

However, I sometimes heard that some foreign investors have not applied to any insurance. Although it is supposed to apply it by advises from real estate agencies, some insurance companies denied applications by foreign investors due to language problems. Also some sloppy agencies leave it to the investors’ responsibilities, or ask them not required to do it as tenants already apply to insurance at rental properties in order to reduce their further burdens. Nevertheless, they are only few cases, and most of agencies prepare insurance for investors properly.

For example, let’s think about fire damage. At the law of concerning responsibility for fire, tenants’ responsibility for fire damage is limited. Some foreign investors ask me if fire damage on the property is tenant’s responsibility, since it is tenant’s fault. However it is not such an easy problem.

You can ask it for tenant’s responsibility, but it is only applicable if it is because tenant’s illegal acts, and other than that, accidents are not covered by tenant’s insurance. Then the damage should be covered by owner’s insurance. At the time, you have to pay huge amount of money by yourself if you are the uninsured.

Even if you cannot accept it and get into a court actions against it, the winning possibilities are so low. Also you will lose much huger amount of money at a court.

So I would recommend you to apply owners insurance for your future benefits.