basic earthquake insurance policy associated with total loss
coverage has been implemented in Taiwan to transfer risk caused by devastating
earthquake. Acceptance of such an insurance claim depends on two criteria.
One is that a building is identifi ed as uninhabitable and requires rebuilding. The
other is that the repair to replacement cost ratio of a building exceeds 50 per cent.
Whether the fi rst criterion is met or not depends on the building damage state,
which can be determined through a damage rating system based on postearthquake
damage inspection on structural components and system. However,
the second criterion has not been implemented for insurance adjuster without
detail fi nancial loss estimation by specialized engineers. In addition, there is no
documented proof that these two criteria are consistent. This article aims to link
post-earthquake damage of structural components to direct fi nancial loss for RC
residential buildings based on post-earthquake damage evidence. As a result, the
second acceptance criterion can be implemented. The statistical analysis shows
that the two criteria are consistent on average. A new assessment procedure by
incorporating criteria in terms of both damage and direct fi nancial loss has been
introduced. With this loss model, half loss coverage or partial loss coverage could
be introduced into the basic earthquake insurance in this region

• Damage and loss assessment for the basic earthquake insurance claim of residential RC buildings in Taiwan