Storm, Flood & Earthquake Insurance Coverage

What is Korea’s Storm, Flood & Earthquake Insurance?

Storm, Flood & Earthquake Insurance (풍수해·지진재해보험) is a policy insurance that pays for damage from natural disasters such as typhoon, flood, heavy rain, storm surge, strong wind, high seas, heavy snow, and earthquake.
It is administered by Korea’s Ministry of the Interior and Safety (MOIS), and because the central and local governments pay most of the premium, you only cover a small out-of-pocket share.
This calculator estimates the government subsidy, your real self-paid premium, and the expected payout by loss grade, so you can see both what you pay and what you would receive after a disaster.

Korea-specific: This calculator is based on Korean rules — the Storm·Flood·Earthquake Insurance Act (풍수해·지진재해보험법, effective 2026-02-01) and its Enforcement Decree (effective 2026-03-03), administered by MOIS. Government subsidy rates (generally 70–92%) combine central and local funding and vary by local government, insurer, region, building structure, and product type. It is a planning estimate and does not replace an insurer quote or an official notice.

Who is this for?

• Homeowners in low-lying, riverside, or coastal areas prone to flooding
• Tenants in disaster-vulnerable areas who want to protect household goods
• Small business owners (소상공인) whose shops flood in heavy rain
• Farmers whose greenhouses (vinyl houses) can collapse under snow or wind
• Basic-livelihood recipients and near-poor households eligible for higher subsidies
• Anyone who finds government disaster relief too small to rebuild

Covered hazards and who can enroll

The policy covers eight natural disasters: typhoon, flood, heavy rain, storm surge, strong wind, high seas, heavy snow, and earthquake (including earthquake-driven tsunami).
Earthquake coverage was added in recent years, which is why the law was renamed from the old “Storm and Flood Insurance Act” to the current Storm·Flood·Earthquake Insurance Act.

Enrollment targets and standard coverage limits (2026)

• House (owner): detached or apartment residential building, up to about KRW 102.7 million
• House (tenant): household goods and movables, up to about KRW 12 million
• Greenhouse: agricultural or forestry vinyl houses, sized by scale
• Small-business store: building, fixtures, and equipment, up to KRW 100 million
• Small-business factory: building and machinery, up to KRW 150 million
• Inventory: goods in a store or factory, up to KRW 50 million

Fixed-amount vs actual-loss products

Products differ by how they pay out, which changes what you receive for the same damage.

• Fixed-amount type (Ⅰ·Ⅱ): pays a set amount by loss grade (total / half / minor loss). Damage below the minor-loss grade is not covered.
• Actual-loss type (Ⅲ·Ⅳ): reimburses the real loss within the coverage limit, so even smaller damage can be paid.

How the government subsidy works

The subsidy rate depends on the applicant’s eligibility (whether the household is vulnerable).
A central-government subsidy sits underneath, and local governments add more on top, so the final rate varies by region.

Standard 2026 subsidy rates (central + local)

General applicant — about 70%: a base national subsidy (~55%) plus local matching, typically reaching 70% and up to 92% in some regions. Self-pay is 8–30%.
Near-poor / single-parent family — about 78%: a vulnerable-group preference cuts self-pay to about 22%.
Basic-livelihood recipients / disaster-vulnerable areas — about 87% (up to 92%): the top tier, with self-pay from 0 to 13%, and some local governments cover 100%.

💡 Tip: the calculator applies a standard rate for each eligibility tier, but you can adjust the rate to match your own city or county.
Confirm your exact rate with the local disaster-management office or one of the seven private insurers.

Payout by loss grade (fixed-amount type)

A fixed-amount product classifies damage by loss ratio into total, half, and minor loss, and pays a set share of the insured amount.
The calculator shows all three expected payouts from the insured amount you enter.

Total loss — loss ratio 70% or more: pays 100% of the insured amount. A KRW 100 million policy pays KRW 100 million.
Half loss — 35% to under 70%: pays 50% of the total-loss amount, i.e. KRW 50 million on a KRW 100 million policy.
Minor loss — 20% to under 35%: pays 25% of the total-loss amount, i.e. KRW 25 million on a KRW 100 million policy.
Below minor loss (under 20%): not covered under the fixed-amount type; choose an actual-loss product to cover smaller damage.

※ The final loss grade and amount depend on the loss assessment, the product, and the policy terms.

How to use the calculator

Step 1: Choose the enrollment target

Pick house (owner), house (tenant), greenhouse, small-business store, or factory.
The standard insured amount for that target is filled in automatically.

Step 2: Choose your eligibility tier

Select general, near-poor (single-parent), or basic-livelihood (disaster-vulnerable).
The standard subsidy rate applies automatically, and you can fine-tune it for your local government.

Step 3: Set the premium input mode

Enter the gross premium from an insurer quote, or let the tool estimate it from a rate (per mille).
Adjust the insured amount and rate to reflect your region and structure.

Step 4: Read the results

See the government subsidy, your real self-paid premium (annual and monthly), and the total/half/minor payouts.
Set a 2- or 3-year term to see the multi-year self-pay total.

Practical scenarios

A homeowner in a flood-prone low area

Homes in repeat-flood zones take heavy losses each monsoon and typhoon season.
Even at the general tier the government covers about 70%, so a KRW 30,000–40,000 annual premium can drop to roughly KRW 10,000 out of pocket.

💡 Tip: enroll in spring, before the summer rains, to be covered for the wet season.

A small business facing store flooding

Semi-basement and ground-floor shops lose inventory and fixtures when heavy rain floods in.
Stores are covered up to KRW 100 million and inventory up to KRW 50 million, cutting business losses sharply.

💡 Tip: check the inventory rider so damaged goods are included in coverage.

Frequently asked questions (FAQ)

Q. Where do I enroll?

A. Through seven private insurers — DB, Hyundai Marine, Samsung Fire, KB, NH, Hanwha, and Meritz — by visit, phone, web, or mobile.
Tenants and group enrollments are often handled through the local disaster-management office or community service center.

Q. Why do I need insurance if disaster relief exists?

A. Government disaster relief only supports minimal recovery and rarely covers the full loss.
This insurance pays a far larger amount within the coverage limit, so it is a real safety net on top of relief.

Q. Why does the premium differ from person to person?

A. Under Article 11 of the Act, the rate reflects regional disaster risk, building structure, area, and product type.
Subsidy rates also differ by local government, so the final self-pay varies. The tool’s figures are estimates based on a standard rate.

Q. Do I have to re-enroll every year?

A. The standard term is one year and needs annual renewal.
Two- or three-year long-term contracts are also available, which helps avoid gaps if you tend to miss renewals.

Prepare for natural disasters at a small cost

Pick your target and eligibility tier to see the government subsidy, your real self-pay, and expected payouts at once.

This tool is an estimate based on Korea’s 2026 Storm·Flood·Earthquake Insurance Act and standard rates. Confirm exact premiums and subsidy rates with the seven insurers or your local government.

Real estate scenario inputs

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