COVERAGE. The Theft policy covers contents of the home appearing on an inventory list, which must be prepared by the insured. Everything within the house must be listed, not just high-risk items. We all know that if a thief gets in the house he will take the TV, the VCR, the computer, the microwave, etc. - but you can’t insure just those items: you must include the dining room table, the water bed, the freezer, the fridge, the grand piano, etc. Items in the garden, patios, terraces, etc. can be included, but there is a surcharge.

NON INSURABLE ITEMS. Jewelry, gems, precious metals, furs, securities, cash, motor vehicles, animals, collectors' items, documents, and priceless artworks can’t be insured. Lately INS has taken to also refusing coverage on portable electronics (cameras, laptop computers, etc.) and firearms.

DAMAGE FROM BREAKING AND ENTERING. If the burgled home belongs to the policy holder, INS pays for damage done to the house by the thief while entering, based on tradesmen's bills for repairs. This insurance does not cover vandalism. (A vandal is someone who damages property with no ulterior motive.)

PREMIUMS. Rates depend on the security and location of the home: there are discounts for good security, and surcharges for remote locations. Window bars and alarms get (non-quantified) discounts. Average rate is 1.5% per year of total on list.

MAIN POLICY PROVISIONS. The policy has an awkward covenant: if the home is to be unoccupied for more than 48 hours, it must be placed in the care of a guard and INS must be notified in writing one week in advance

LEAD TIME. It usually takes 2-3 weeks to establish a policy, so don’t apply on the eve of leaving for your annual vacation. Your Agent must visit the home, you must sign an application form and deliver your signed inventory list. INS will receive the paperwork and, selectively, send an inspector to the home. If it’s outside the Central Valley, this can take several weeks. Following, INS will determine the premium: then you can pay, and finally will have Home Theft coverage.

CLAIMS. Mysterious disappearance is not covered; the policy only pays in clear cases of burglary: there must be evidence of a break in or intimidation – meaning a thief held a knife at your throat and told you to open the door, or something like that – farfetched, but it could happen! INS must be notified IMMEDIATELY after the event has been discovered. Following is a list of requirements which must be submitted within 5 working days:

1. A copy of the “denuncia” (report) made to the OIJ (police detectives) which should include an inventory of stolen items, with their makes, models and serial numbers.

2. OIJ will make an on-site inspection, and issue a report. INS requires a copy.

3. A signed list of the stolen items with a detail of their age and value. (Must coincide with the “denuncia”.)

4. Pro-forma invoices of items to replace those which were stolen.

5. Original invoices (“facturas”) for the repair of the damage to the house, from the breaking and entering.

6. If the house is rented, a copy of the rental contract.

7. Copy of the ID of the insured – who must personally make the claim.

8. After 3 months, OIJ will make a report of their investigation of the theft. A copy of this report is required. (This is an exception to the 5 day deadline mentioned above.)

For stolen items INS pays whichever is lower, the value per the insured’s list (see the paragraph “Coverage” above) or the depreciated value. They depreciate electrical items at 10% per year, and electronics at 20% per year. Deductible is 10% of value of stolen items, minimum C.50,000 per break in.

The writer’s purpose is to give you a better understanding of insurance in Costa Rica. The opinions and viewpoints are his, and do not necessarily represent the official position of the National Insurance Institute (INS). For further information see www.InsuranceCostaRica.info, call David Garrett at 233 2455, or write david@InsuranceCostaRica.info .