FIRE FOR APPARTMENTS

This is an extract. Please read the entire policy to get the full picture (spanish version only). Following are the coverages available. Within certain rules, you can select the coverages you need and pay for the ones you get.

FIRE & NATURAL DISASTER POLICY FOR APARTMENTS
Extract

WHAT CAN BE INSURED? 

Apartments (condos) and/or their contents.  There is a special, cheaper policy for houses.

AGAINST WHAT PERILS? 

There are four principal coverages:  “A”  covers fire and lightning; “B” covers damage caused by mutiny, strikes, vandalism, hurricane, cyclone, explosion, smoke, falling objects, vehicles and resulting fire; “C” pays for damage caused by floods and  landslides; “D” covers natural disasters : 'quakes, tremors, volcanoes, tsunamis, etc. C and are D sold jointly. You can take A coverage by itself,  A+B,  A+CD,  or complete coverage A+B+CD.

OTHER PERILS

Please inquire if you are interested in coverage for “F” Restricted use of premises; “G” Rain and spillage; “H” Loss of income; “I” Window breakage; “Q” Extra expense. 

WHAT IF THE PLACE IS RENTED? 

The tenant covers his contents and leasehold improvements. The landlord insures the building itself

THE COST? 

The rate depends on the number of floors and the type of construction. The policy is in Colones, and there is an inbuilt indexation to compensate for inflation/devaluation, so the insured value and premium remain about the same in Dollars every year. A good yardstick is 0.65% for ABCD on a 2 floor concrete building, including tax. The rate multiplied by the rebuild value determines the premium.

HOW IS THE VALUE ESTABLISHED?  

You base it on estimated cost of rebuilding, less 1% depreciation for every year that the building is old or since it was extensively done over.

WHAT ABOUT CONTENTS ?  

INS requires a comprehensive list, with values for each item, based on current prices in Costa Rica, less depreciation. It is unusual to insure contents of masonry buildings.

IS THERE A DEDUCTIBLE?  

Coverage A, no deductible. Coverage B, a fixed deductible of C.20,000 per event, except for wind damage, where it is 20% of loss, minimum C.20,000. Coverage C, 25% of the loss. Coverage D, 5% of loss, minimum C.50,000.

EXCLUSIONS

Main ones are: flooding or water damage because of defective gutters, drains, roof, plumbing, etc.; damage to the electrical system or contents of the building due to lightning which did not cause fire; minor damage such as cigarette burns on carpets, etc.

MAIN PROVISIONS

Not leaving the place unguarded for 30 days or more. Claims should be presented within 5 days of damage occurring.                                 

Rev 06/08