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Home insurance in Costa Rica is not mandatory. There is no legal requirement at the national or municipal level that obliges a homeowner to insure a house in order to own it, live in it, or sell it. A property can be fully legal, properly registered, and used without any home insurance policy.
The decision to insure a home is made solely by the owner. In Costa Rica, home insurance is not considered a standard or required practice, and the absence of a policy is not viewed as a problem or violation.
If a homeowner decides to insure their property, this can be done through Costa Rican insurance companies or with the assistance of an insurance broker.
The process is usually simple and includes:
Choosing an insurance company or broker
Providing basic information about the property, such as location, year of construction, size, and building materials
Selecting the type of coverage desired
Receiving a quote
Signing the policy and making payment
Insurance can be taken for the structure only or expanded to include furniture, appliances, and personal belongings. Coverage options can be adjusted according to the owner’s preferences.
Coverage depends on the selected plan. In Costa Rica, a home insurance policy may include:
Fire and smoke damage
Lightning strikes
Strong winds and storms
Damage caused by falling trees
Third-party liability
Certain risks, such as flooding or earthquakes, are often offered as separate coverage and may not be included in a basic policy.
Some developers in Costa Rica provide a builder’s warranty of up to five years on newly constructed homes. This type of warranty usually applies to construction quality and may cover:
Structural elements
Foundations
Roofing
Construction-related systems
A builder’s warranty is not insurance and does not replace an insurance policy. It applies only to issues related to construction workmanship and materials.
On Costa Rica’s Caribbean coast, it is important to understand the real climate conditions:
There are no tornadoes
There are no hurricanes comparable to those affecting the Caribbean islands or the United States
There are no extreme seasonal natural disasters
The climate is tropical, with higher humidity and a rainy season. These characteristics are taken into account individually by each homeowner when deciding whether or not to insure a property.
Owning a home in Costa Rica does not require mandatory insurance. If an owner wishes to insure their property, they may do so. If they decide not to, that choice is equally valid.
The decision depends entirely on the owner’s personal approach to risk and property ownership.
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