GENERAL INSURANCE INFORMATION

There is only one insurance company, INS, and the Government owns it. By law, only INS is allowed to sell insurance in Costa Rica. If you can get insurance from abroad that will cover your Costa Rican assets, that is fine.

• INS sells insurance over the counter at its various offices, or you can go through an Agent: the price is the same, but if you go through an Agent you get a better deal, as you will get advice and help with the red tape if, along the line, you have a claim.
• Value of items being insured is determined by the applicant, using Actual Cash Value (i.e. depreciated value). INS does not have appraisers and, for cars, there is no Blue Book.
• Insured values and premiums are in Colones. Currency devaluation makes it advisable to periodically revise values.
• All policies have deductibles, which in most cases are fixed by INS: there is nothing to choose between. Deductibles average 20% per claim on most types of policy.
• Insurance binders do not exist: formal applications have to be completed and signed, and in most cases the item must be inspected and the premium paid before insurance becomes effective.
• INS, probably because it is a monopoly, is among the largest and most solid insurance companies in Central America. It reinsures internationally a large percentage of the risk.

AUTO INSURANCE

• Auto insurance is on the vehicle, and affords cover so long as the person driving at the time of an accident has a valid license.
• Obligatory auto insurance comes with the car registration. It provides such a small amount of coverage that it should be regarded as another tax.
• Supplementary auto coverage is not obligatory, but it is advisable to have at least liability coverage.
• Coverage for collision, theft etc is only possible if the vehicle has been legally imported - i.e. customs duty has been paid.
• Auto insurance is usually paid semi-annually, and premiums average 4.5% of the market value of the car for 6 months full cover.

HOMEOWNER’S FIRE AND NATURAL DISASTER POLICYCan cover the house, the house plus contents, or the contents alone against the following perils:

• Coverage "A" (Basic coverage) - Fire and Lightening
• Coverage "B" - Wind, Hurricane, Cyclone, Falling objects, Explosions, Smoke etc
• Coverage "C" - Floods, Landslides
• Coverage "D" - Quakes, Tremors, Volcanoes

Rate is 0.2436% per year for ABCD based on the estimated cost of rebuilding: in other words, the value of land should be disregarded. Example: insurance for a house worth $100,000 would cost $243.60 per year.

HOME THEFT INSURANCE

Covers only cases of forcible entry. Policy is based on a list of ALL items in the house, except cash, jewellery and securities, which cannot be insured. INS usually accepts the risk for artworks, collectors' items, antiques etc but this is not automatic. Theft premiums average 1% per year of the total on the list of insured items: exact premium depends on the security and location of the house. It sometimes takes nearly 1 month to get Theft insurance established.

HOME OWNER'S LIABILITY

Covers amount awarded by Costa Rican courts for events taking place within the confines of the house. As Costa Rica is not a litigious country, this insurance is not important for the average householder.

MEDICAL INSURANCE

There several options to choose from: consult your Agent. Available to anyone, regardless of legal status in Costa Rica, the policy is excellent in Costa Rica, but not worthwhile abroad. Pays 80% of expenses due to accident or sickness, based on a list of providers who are affiliated to the plan. Pre-existing conditions and checkups are not paid for. Dental work, eyeglasses and cosmetic surgery are only paid if they are required as a result of an accident. Premiums increase with age. Samples: for the best coverage a gentleman of 50 would pay $450 per year, a lady of 50 would pay $670, dependents up to 18, $250. It takes INS about 3 weeks to process applications.