Earthquake, Flood and Natural Peril Coverage in Costa Rica
Earthquake and flood are included as named perils in standard Costa Rican property policies — they are not optional riders as in the United States. Deductibles for seismic and hydrological events are higher than for fire, and are applied as a percentage of the insured value.
Updated: August 2026
Is earthquake damage covered in Costa Rica?
Yes. Seismic movement is a named peril inside the standard property policy sold by INS and the private carriers, not a separate purchase. Costa Rica sits on the Cocos–Caribbean subduction zone, so carriers price seismic risk into every property policy rather than treating it as an exotic add-on.
Does the policy cover flooding and hurricane damage?
Yes. Flood, hurricane wind and tropical storm damage are included. Pacific Coast properties are rated primarily on rainfall exposure, proximity to rivers and quebradas, and elevation. Damage from a storm surge on an oceanfront lot is where carriers become selective, and some decline to quote entirely.
How do deductibles work for catastrophe claims?
Catastrophe deductibles are expressed as a percentage of the insured value rather than a flat amount, and they are higher than the fire deductible. On a $300,000 insured structure, a percentage deductible means the first several thousand dollars of a seismic or flood loss are absorbed by the owner.
What natural-peril damage is not covered?
Gradual deterioration is excluded even when the tropics caused it: rusted rebar, humidity damage, rotted wood and slow settling of foundations. Insurance responds to sudden, accidental events. If an adjuster concludes the roof failed because it was already corroded, the storm will not be treated as the cause.
Will the carrier inspect my property before issuing?
Often, yes. INS may require a physical inspection before issuing a policy on a property exposed to seismic or coastal risk. The inspection documents construction type, roof condition and drainage. Passing it is straightforward for a well-maintained home and it also protects you at claim time.
What a Costa Rican property policy placed by Insura covers and excludes
| Item | Covered | Detail |
|---|
| Structure (walls, roof, foundation) | Yes | Insured for reconstruction value, not market value. |
| Earthquake and seismic movement | Yes | Included as a named peril in standard INS property policies. |
| Flood, storm and hurricane wind | Yes | Included; deductibles are higher than for fire. |
| Civil liability (third-party injury) | Yes | Bundled with the structure at roughly USD $200 per year per $100,000 insured. |
| Simple theft (no forced entry) | Yes | Covered when the loss is provable and documented. |
| Vandalism | Partial | Covered on white goods (línea blanca) and structural damage only. |
| Swimming pool or jacuzzi structure | Yes | The shell is part of the structure. |
| Pool or jacuzzi equipment (pump, heater) | No | Machinery must be scheduled as a separate item. |
| Loss of rental income (lucro cesante) | Partial | Applies to long-term leases; short-term rental income is possible but must be based on pre-existing, documented income. |
| Wear and tear / deterioration | No | Gradual deterioration is always excluded. |
| Damage caused by pets | No | Excluded from every property policy in the market. |
| Broken furniture | No | Furniture breakage is excluded; theft of contents can be scheduled separately. |