Costa Rica Insurance: Frequently Asked Questions
Twenty answers on how property and vacation rental insurance actually works in Costa Rica — pricing, covered perils, exclusions, the issuance process and claims — written by Fernando Cabada, SUGESE-licensed insurance broker (license 21-1857).
Updated: August 2026
How much does property insurance cost in Costa Rica?
Roughly USD $200 per year for every $100,000 of insured value, covering the structure and civil liability. Under a collective policy the rate drops to about USD $180 per $100,000. A $500,000 reconstruction value therefore costs approximately $1,000 per year individually.
Is earthquake coverage included or does it cost extra?
It is included. Seismic movement is a named peril in the standard Costa Rican property policy rather than an optional endorsement, because the entire country sits in an active seismic zone. The seismic deductible is a percentage of insured value and is higher than the fire deductible.
Is flooding covered?
Yes. Flood, hurricane wind and tropical storm damage are part of the standard policy. Rating depends on elevation, proximity to rivers and quebradas, and drainage. Damage from ocean storm surge on beachfront lots is the exposure that makes some carriers decline the risk altogether.
Is theft covered if there is no forced entry?
Yes, simple theft is covered when it is provable. You need documentation the adjuster can verify: purchase invoices, photographs, serial numbers and a police report filed with the OIJ. Provability, not the presence of a broken lock, is what determines whether the claim is paid.
Is vandalism covered?
Only partially. Vandalism is covered on white goods (línea blanca) and on structural damage. Vandalism to other contents is not covered. This is one of the most misunderstood clauses in Costa Rican property policies and is worth reading in the wording before you buy.
Are my swimming pool and jacuzzi insured?
The pool or jacuzzi shell is part of the structure and is covered. The equipment is not: the pump, heater and filtration machinery must be scheduled separately as insured items. Owners routinely assume the whole installation is included and find the gap only after an equipment failure.
Does insurance cover damage caused by my pets?
No. Damage caused by pets is excluded from every property policy in the Costa Rican market. There is no endorsement available to add it. The same applies to gradual deterioration and to broken furniture, which are the other two exclusions that generate the most declined claims.
Is broken furniture covered?
No. Furniture breakage is excluded. Contents can be insured against covered perils such as fire, storm and provable theft, but the act of a chair or table breaking in normal use is not an insurable event under any policy sold in Costa Rica.
Does insurance pay lost rental income?
Loss of income applies cleanly to long-term leases with a signed contract. Short-term rental income can be insured but is based on pre-existing, documented income — platform payout history, bank deposits, tax filings — and the underwriting is more complex. A never-rented property has no baseline to indemnify.
Do I have to tell the insurer that I rent the property?
Yes. Rental use must be declared on the policy so guest civil liability applies. Failing to declare it gives the carrier grounds to contest a claim that occurs during a paid stay. Declaring it does not materially increase the premium, so there is no upside to omitting it.
Will INS inspect my property before issuing the policy?
It may. INS can require a physical inspection before issuance, particularly on coastal, high-value or older properties. The inspector documents construction type, roof condition and drainage. A well-maintained home passes without difficulty, and the report also strengthens your position at claim time.
Can I sign the policy with DocuSign?
No. INS does not accept DocuSign. Signature must be made with a Costa Rican digital signature (firma digital) or physically on paper. Plan for this in your timeline if you are abroad, because it is the step that most often delays issuance for non-resident owners.
When am I charged the premium?
Payment is not processed until the policy is formally issued. Quotes cost nothing and no deposit is required to hold one. If an inspection is required it occurs before issuance, and the charge follows the carrier's confirmation that coverage is in force.
Can I insure a house right on the beach?
Frequently yes, but not with every carrier. Some insurers decline to quote properties very close to the ocean because of salt corrosion, wind and storm surge. Alternative markets accept these risks. Knowing which carrier writes your specific address is what avoids weeks of declined applications.
How is the insured value determined?
By reconstruction cost — what it would cost to rebuild the structure today at current material and labour prices. Land is never insured. This is why the insured value on a beachfront home is often half or less of what the property sold for on the open market.
Are policies written in dollars or colones?
Both are available in the Costa Rican market. Dollar-denominated policies suit owners whose reconstruction costs and income are in dollars, which is common on the Pacific Coast. The choice affects how the insured value tracks inflation and exchange rate movement over the policy year.
What should I do immediately after a loss?
Make the property safe, photograph everything before moving anything, file a police report if theft or vandalism is involved, and notify the broker the same day. Adjuster access to an undisturbed scene, plus dated photographs, is what turns a disputed claim into a paid one.
Who handles the claim, the insurer or the broker?
The carrier adjusts and pays the claim; the broker represents you through the process — filing, documentation, adjuster coordination and challenging a low or declined settlement. That advocacy is included in the policy you already pay for, since the broker is remunerated by the carrier.
Is Insura an insurance company?
No. Insura is the trade name of Fernando Cabada, an insurance broker licensed by SUGESE under license 21-1857. He operates with the backing of Essential Corredora de Seguros S.A., SUGESE license SC-14-120. Policies are issued by carriers such as INS and private insurers, not by Insura.
How do I verify a broker's license in Costa Rica?
Every intermediary is registered with the Superintendencia General de Seguros (SUGESE) and the registry is public at sugese.fi.cr. Fernando Cabada's broker license is 21-1857 and Essential Corredora de Seguros S.A. holds license SC-14-120. Verifying before you buy takes a couple of minutes.
Do you serve clients outside the Pacific Coast?
Yes. Most clients own property in Guanacaste and Puntarenas, but coverage is placed nationwide, including the Central Valley. Consultations are handled in English and Spanish by WhatsApp, phone or email, which suits owners who are outside Costa Rica for part of the year.