Homeowners insurance in Panama: how does it work?

Your new house or condo is an important investment that you’re looking to protect. A homeowners insurance policy can help you get that peace of mind. Whether you are considering purchasing a home in Panama, or already own one, there are several possibilities to insure your home.

Let’s explore the homeowner insurance options available in Panama.

How does homeowners insurance work?

In Panama, insurance companies insure the building (structure) and the contents under separate policies.

The home insurance options range from a standard fire insurance coverage to a multi risk insurance.

The standard Panama fire insurance structure policy includes coverage for fire, explosion, earthquake, windstorm, flood and common water damages. Note that this coverage is required for every mortgage issued from a Panama bank.

If you want to expand your insurance you can do so with a multi risk insurance package. This package consists of separate policies including additional protection against theft and personal / general liability.

Theft coverage is for break in with forced entry, as well as, assault inside and outside the residence. The damage caused to the structure in case of break in with forced entry is covered under this theft provision. Theft and damage to electronic equipment is also part of the package.

Liability coverage extends to damage you may cause to your neighbors property from a fire or water leak initiating in your residence. If a third party is injured on your premises, there is medical payments coverage and legal assistance.

This multi risk residential homeowners package has added benefits including reimbursement for stolen credit cards, locksmith service, plumbing and electrical services in case of a domestic emergency. Some packages include ambulance service, free medical consultation and even coverage for accident or death of pets.

How much does it cost?

The average annual premium for the fire insurance on most structures is approximately 0.01% of the value of the property. For example, a condo or house valued at $200,000 will pay approx. $200/yr.
The average “contents” multi risk package for $20,000 Fire / Theft limit with $100,000 liability protection is less than $100/yr.

Source: (Kevin Bradley)

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