Home Real Estate Tips Property insurances in Costa Rica
Property insurances in Costa Rica

Costa Rica property insurances

This article should serve as additional information on your end since you should be aware that there are instances that the insurance may not cover some accidents or incidents caused by Mother Nature. For example, a sudden landslide that occurred last year affected a condominium building. However, the insurance company (Instituo Nacional de Seguros) decided that the residents won’t be getting any compensation due to its findings that the structure was built noticeably close to a slope edge. It seemed that there are exceptions specified on the coverage and that it should have been known beforehand that it was a risk building a condominium near a high terrain.
Having this incident in mind, it would pay off on your end to find a suitable property that is free of immediate dangers from natural disasters.

Landslide Risks in Costa Rica
Unfortunately, it may pose a challenge to look for a risk-free property in Costa Rica since there are more than 1,200 zones in the country that have been identified as at risk of landslides.
Areas that have been determined to have numerous incidents of land slides are Puriscal, Mora, San Jose, Desamparados and Greater Metropolitan Area. Costa Rica’s School of Civil Engineers (or Colegio de Ingenieros Civiles de Costa Rica) conducted a study in 2005 and came up with the said findings.

Furthermore, the study stated that families living in these “danger” zones are at higher risk of being victims of landslides than others. In fact, building a home near a slope or river can be dangerous. However, it is also a known fact that not all people can afford buying a property in the city, not with the increasing prices of real estate properties due to the increasing demand both from foreign and local entities.

Before you sign or pay the insurance, review the stipulations first. If the insurance company does not cover the insurance when you live near a slope, then it would be recommendable for you to consult with a qualified insurance expert and see what other options you can avail. You may need to look for another insurance company that can cover these risks.
Another instance that insurance policies won’t work is on construction defects or breach of construction codes. This is usually determined after an investigation has been made.

Another thing you should know is that there are certain areas that have lands made out of tricky clay material. The clay reportedly shrinks or expands depending on the weather. If you happen to have a structure on that clay, your property could be in danger of cracks and other structural damage due to the volatility of the land. It has been determined through a study by the Colegio Federado de Ingenieros y Arquitectos (CFIA) that several zones in the country have this expansive clay. If such incidents occur, you are not entitled to the insurance.
Fill slide occurrences won’t merit insurance payouts as well. Fills are usually areas covered with different materials in order to level up a surface. The materials may be natural soil, metals, ceramic remains or others. These are used to increase the level of a certain patched area.

Structures on a filled area are at risk of sudden sinking or worse, sudden collapse due to sudden erosion of the land. Insurance companies usually explain in advance that fill slide occurrences are part of the exclusions. Therefore, you have to read first the insurance contract in order to avoid unnecessary payments for something you can’t avail in the future.
You must also investigate first the property that you want to purchase and determine if it is at risk of the aforementioned conditions. You may want to look for other options while you are here in Costa Rica.

There’s no guarantee
Be it known that there’s really no guarantee that your new house or property is safe from construction catastrophes even though it had the necessary construction permits or the approval from the bank, insurance company or the local government. Therefore, you should hire a qualified professional to check first the quality of your property’s terrain.
According to Curridabat Municipality Operations Chief Juan Carlos Arroyo, the engineer that takes charge in the construction of your home has the responsibility to make sure that the terrain is acceptable in terms of having a structure built on it. He stressed that these engineers must have the know-how in making sure that the structures are properly made since they will take change with the structural design, ground studies and others.

Arroyo added that municipal governments adhere to Law of Construction. This means that the municipalities are not obligated to solicit copies of ground studies from contractors.
He said that the municipalities’ sole responsibility is to make sure that the buildings or structures are not constructed in zones that are identified in danger of landslides by the National Emergency Commission.
These may cause renewed concern on your end especially that you have already made up your mind in settling here in Costa Rica. Don’t worry. If you do your research and hire qualified personnel, you are pretty much safe from such disasters.
 

Newsflash

Real estate projects in Costa Rica’s beachfront
Several positive changes are taking place in a number of beachside areas in Costa Rica. This may be due to the fact that a lot of local and foreign visitors flock the area to have a great time with their families and friends, basking under the heat of the sun and swimming in the blue waters.
In the past years, all you can see are small stores and restaurants set up on these areas. However, a large grocery market has been put up last year in El Llano, just under 30 minutes away from Playa Tamarindo. This signifies great progress in the area. Not only that, several grocery stores are about to be set up in other neighboring beach towns such as Supermercado de Pacifico and Supercompro. In fact, several high profile government officials will be present to do the ribbon cutting of these establishments.
Read more...