10 things you should know when buying Tamarindo real estate
Pt. 6: Homeowner’s Insurance
In part one of this ten-part series, we discussed the Costa Rican legal system and how it differs from the U.S. legal system. In part two, we discussed how to choose a realtor. In part three, we discussed property managers and the services they provide in maintaining and renting your vacation home. In the fourth installment, we discussed the various taxes that may apply when owning Tamarindo real estate. In part five, we discussed the various utilities that service your new home. In this installment, we will discuss how to obtain Homeowner’s Insurance for your new Tamarindo Real Estate.
Insuring Your New Home
Whether you purchased a home or condo or recently built a home on a piece of land you purchased, one thing is certain, you want to protect your investment. In Tamarindo, the only natural disasters you need to worry about are fires and earthquakes. The region is not known for hurricanes, tornadoes, or volcanic eruptions. At present, the only insurance provider offering Homeowner’s Insurance in Costa Rica is the government-run Instituto Nacional de Seguros, or the INS. You can purchase an insurance policy at one of the many INS offices throughout the country, or through an INS registered agent. It’s easy to purchase an insurance policy for your home or condo through INS and the cost of the policy will be the same if you go to an office location or work with a registered agent.
INS offers several policies to protect your new home or condo against Fire and Natural Disasters, Home Theft, and Homeowner’s Liability. The Homeowner’s Fire and Natural Disaster Policy can cover just the house, just the contents of the house, or both the house and the contents against a variety of natural disasters. Fire and Lightning, Winds, Hurricanes, Cyclones, Falling Objects, and Smoke, Floods and Landslides, or Quakes, Tremors, and Volcanoes are all coverage packages offered by the INS. Again, the only natural disasters you need to protect your new Tamarindo Real Estate against are fires and earthquakes, so you won’t need to purchase all of the coverage packages.
Thanks to CAFTA, the Central American Free Trade Agreement with the United States, Costa Rica will soon be opening up the Homeowner’s Insurance market to private insurance providers, offering an alternative to INS. While this legislation is in place, nothing has been put into practice as of yet. For now, Homeowner’s Insurance is only available through INS. The cost of Homeowner’s Insurance is relatively low. A house estimated at $170,000 requires only a yearly payment of $365.00. To ensure the contents of your house or condo, you’ll need to make a list of all of the contents valued at over $750.00.
Home Theft Insurance
To protect your new home or condo from theft, you may want to purchase a Home Theft Insurance policy, also available through INS. This is especially important if you don’t plan on living in your Tamarindo home or condo year round, as there may be times throughout the year where no one is staying in your home or condo. The Home Theft Insurance Policy covers instances of forcible entry and only covers those items that you listed in the house when you purchased the policy. Cash, jewelry, and securities which cannot be insured are not covered by a Home Theft Insurance policy. Both possessions and damages to your home or condo are covered by Home Theft Insurance.
This insurance is not important for the average householder, as Costa Rica is not a litigious country, but it can still be purchased through INS if it is deemed important by you or if you plan on renting out your house or condo. Homeowner’s Liability covers the amount awarded by Costa Rican courts for incidents taking place within the confines of the house.
PPV Tamarindo Real Estate is an Eco-conscious, residential Ocean View community located on Costa Rica’s beautiful Pacific Coast. Our development offers more luxury than you would ever expect at an affordable price. Our development is close to beautiful beaches; offers Ocean View Condos; lots offering panoramic Ocean views; and affordable tropical residential lots.