Homeowners insurance in Panama: how does it work?
Published on
Updated on
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)
Kent Davis, founder of Panama Equity Real Estate, is a leading expert in Panama’s competitive real estate market. Originally from Honolulu, Hawaii, he holds a Marketing Information Systems degree from James Madison University. After a successful corporate career managing multimillion-dollar inventories at Hajoca Corporation, Kent pursued his dream of living abroad, moving to Panama in 2007.
Driven by an entrepreneurial spirit, he established Panama Equity to connect buyers, sellers, and investors with Panama’s top properties. Known for his transparency, expertise, and market insights, Kent has helped hundreds navigate Panama’s real estate landscape. Fluent in Spanish, he frequently publishes market reports to empower clients with informed decisions.
Beyond real estate, Kent is passionate about Panama’s culture, landscapes, and surf-friendly beaches. He lives in Panama with his wife and three sons, embracing the vibrant lifestyle the country offers.
CAROL FAUBERT
on said
Good Morning Kent,
I am a Canadian, living in Vancouver BC, looking at a condo to purchasing. The one I am seriously considering is a 2-bathroom 2,-bedroom, condo in the Playa Caracol area, called the Gardens. It is pre-construction right now, but before purchasing it, I’m looking at all potential costs once the condo ownership is transferred to me.
You are probably aware, this area is designed to accommodate tourists who prefer to live in a home environment next to all “the action”. I will need insurance, obviously. The risk is high because people are going to live there for “fun” primarily. TO MITIGATE BOTH YOUR RISK AND MINE, IS IT LEGAL in PANAMA, TO CHARGE SHORT TERM TENANTS A REFUNDABLE DAMAGE DEPOSIT? HOW MUCH $ or % can be charged to the tenant? Please tell me about your comprehensive coverage for condominiums located in that area. The one I’m looking at is 93.5 square meters. In Panama, is it customary to provide outside or inside measurements? This is the size they are assigning for this one, although they say that it could change to a larger or smaller size. I have a website. It’s down, due to the pandemic.
Kent Davis
on said
Hi Carol, thanks for taking the time to reach out regarding homeowner’s insurance in Panama, specifically for the Playa Caracol unit you are thinking about purchasing. I’ve sent you a private message, the gist of which is: Yes, you can absolutely charge tenants a deposit and there is no regulated amount. Customary is the first months’ rent, however on a vacation rental you may consider a rate based on the number of people, value of the contents, etc. Airbnb has a feature for that purpose. Cheers, Kent.
CAROL FAUBERT
on said
CONDO Coverage, 93.05 meters squared. The GARDENS at Playa Caracol. 2-bedroom, 2 bathroom including furniture and fittings. COST of INSURANCE. and legal amount to charge the tenant as a damage deposit.
Matt Wilhelm
on said
Kent, do you have the names of any insurance companies or recommendations for getting a policy? I can’t find much via google.
Matthew Marx (PJ-0752-09)
on said
Hi Matt, The company that I work most closely with is Assa. I’ll get you intro’d privately to the person I’ve been using for quite some time
Ramona Gilbert
on said
Hello Kent, I am interested in obtaining condo insurance for my condo at the Royal Palm. Is there anyone you can connect me with to start the process. Thanks
Kent Davis
on said
Hi Ramona, absolutely. Stand by! Have sent you that info privately.
Andrea
on said
Hello Kent, I am interested in getting a quote for condo insurance in Nueva Gorgona. Do you have any recommendations and/or contact information? Thank you!
James
on said
Hi, are you able to recommend a home insurance provider that covers the islands of Bocas del Toro? Many thanks.
Kent Davis
on said
Absolutely James, we’ve sent you an email introduction
JC
on said
Hello,
Would you mind also send an introduction for insurance at royal palm please and thank you.
Duane
on said
Hello we have recently purchased a unit at Playa Caracol could you put me in contact with an insurance provider…we are partially mortgaged with banco general
john
on said
Hi. Can you get me the introduction as well please Kent. Lookingh for insurance in the Coronado area.
Josephine
on said
Hello,
I’m looking for a contact for home insurance for Nueva Gorgona as well please.
Carlos Munoz
on said
Hola Josephine,
Thank you for checking out our post! My name is Carlos, and I handle rentals and sales in the beach area of Panama, from Punta Chame to Buenaventura, including Gorgona!
I’ve shared an introduction to my trusted homeowner insurance broker. Please let me know how it goes!
CV
on said
This article is from 2016. Have the prices changed since then?
Kent Davis
on said
Honestly, not much!