“HOGAR SEGURO 2000” HOME FIRE POLICY

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

“HOGAR SEGURO 2000” HOME FIRE POLICY
 Extract

WHAT CAN BE INSURED?  Homes and/or their contents: policy is for single dwellings, not commercial buildings or apartments. However, up to 20% of the area can be used for “safe” commercial activity – e.g. office, store, boutique.

AGAINST WHAT PERILS?  There are four 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.

WHAT IF THE HOUSE IS RENTED?  The tenant covers his household effects. The landlord insures the house itself.

THE COST?  Coverage can be in Colones or Dollars: rates are similar. Exact rates depend on the seismic risk of the district where the house is located. Rates for ABCD range between 0.21% and 0.31%, including tax. The rate is applied to the rebuild cost. Example: the premium for a home valued at $100,000 in a non high risk area would average $260-$270 per year including tax.

HOW IS THE VALUE ESTABLISHED?  You base it on ESTIMATED REBUILD COST, less depreciation for every year since the house was built or extensively refurbished, at the rate of 2% per year for wooden buildings, or 1% for masonry buildings. Note: INS automatically adjusts insured values every year at policy renewal time following an index of increases in construction costs.

WHAT ABOUT CONTENTS ?   Estimate the value based on current prices in Costa Rica.  INS does not ask for a comprehensive list, but you should itemize single articles worth US$1,500 or more. It is unusual to insure contents of masonry houses.

IS THERE A DEDUCTIBLE?  For B coverage, deductible is $100 per claim. For hurricane damage it is 20%. For CD coverages, deductible is 1% of the total insured amount with a minimum of $100. Also, C and D have a $100 “participation”. 

EXCLUSIONS. Damage attributable to poor construction, maintenance or carelessness; damage to the electrical system or contents of the house due to lightning which did not cause a fire; damage resulting from war, invasion, revolt, etc.; minor damage such as cigarette burns on carpets, etc.

MAIN PROVISIONS.  Not leaving the house unoccupied and unguarded for 30 days or
more. Not keeping combustible materials in house. Claims should be presented within 5 days of the event causing damage.

“MULTIASISTENCIA” FREE BENEFIT. For emergencies requiring a doctor, plumber, mason, electrician or locksmith, call 800-800-8001. Also free airport taxis.           Rev 04/10