Vacation Rental Insurance in Costa Rica
A Costa Rican vacation rental needs a property policy that names the rental use, includes civil liability for guest injuries, and — where income is documented — loss of rental income. Pricing starts around USD $200 per year per $100,000 insured, the same base as an owner-occupied home.
Updated: August 2026
Do I need special insurance to rent my Costa Rica home to guests?
Yes. A policy issued for owner occupancy can be contested when the loss happens during a paid stay. The rental use must be declared on the policy so that guest civil liability applies. Declaring it does not materially raise the premium; hiding it can void the claim.
Does insurance cover lost rental income?
Loss of income (lucro cesante) applies cleanly to long-term leases, where a signed contract sets the monthly rent. Short-term rental income can be insured, but the carrier bases the amount on pre-existing, documented income — bank deposits, platform statements, tax filings — and the underwriting is noticeably more complex.
Practical consequence: a property that has been rented on Airbnb for two years with visible payout history is insurable for income loss. A property that has never been rented is not — there is no baseline for the carrier to indemnify.
What happens if a guest is injured at my property?
Civil liability, which is bundled with the structure coverage, responds to third-party bodily injury and property damage on the premises. That includes the most common coastal claims: pool accidents, falls on wet tile and injuries on stairs or decks. Liability limits should be reviewed against the property's guest capacity.
Are the pool and jacuzzi covered?
The pool or jacuzzi shell is part of the insured structure and is covered. The equipment is not: pumps, heaters and filtration machinery must be scheduled as separate insured items. Owners who assume the entire installation is covered discover the gap only when the pump fails after a surge.
What do guests break that insurance will not pay for?
Broken furniture, gradual deterioration and damage caused by pets are excluded across the market. Vandalism is covered only on white goods and structural damage. Guest theft of contents is claimable as simple theft when the item is provable with receipts, photographs and a police report.
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. |