fire - OTHER

FIRE POLICY
Extract

WHAT CAN BE INSURED? 

Buildings and/or their contents.  There is a special, cheaper policy for single family dwellings.

AGAINST WHAT PERILS? 

Four principal coverages:  “A”  covers fire and lightning; “B” covers damage caused by mutiny, strikes, vandalism, hurricane, cyclone, explosion, smoke, falling objects, vehicles and resulting fire; “C” pays for damage caused by floods and  landslides; “D” covers natural disasters : 'quakes, tremors, volcanoes, tsunamis, etc. C and are D sold jointly. You can take A coverage by itself,  A+B,  A+CD,  or complete coverage A+B+CD.

OTHER PERILS

Please inquire if you are interested in coverage for “F” Restricted use of premises; “G” Rain and spillage; “H” Loss of income; “I” Window breakage; “Q” Extra expense. 

WHAT IF THE BUILDING IS RENTED? 

The tenant covers his contents and leasehold improvements. The landlord insures the building itself

THE COST? 

The rate depends on the activity developed within the building, type of construction, fire protection, distance to the nearest fire station, etc.  After you apply for insurance, an INS inspector will visit and finalize the rate for each requested coverage.  A good yardstick is 0.75% for ABCD on a concrete building. The rate multiplied by the value determines the premium.

HOW IS THE VALUE ESTABLISHED?  

You base it on ESTIMATED REBUILD COST, less 2% depreciation for every year that the building is old, for wooden buildings, or 1% for masonry buildings.

WHAT ABOUT CONTENTS ?  

INS requires a comprehensive list, with values for each item, based on current prices in Costa Rica, less depreciation. It is unusual to insure contents of masonry buildings.  

IS THERE A DEDUCTIBLE?  

Coverage A, no deductible. Coverage B, a fixed deductible of C.20,000 per event, except for wind damage, where it is 20% of loss, minimum C.20,000. Coverage C, 25% of the loss. Coverage D, 5% of loss, minimum C.50,000.

EXCLUSIONS

Main ones are: flooding or water damage because of defective gutters, drains, roof, plumbing, etc.; damage to the electrical system or contents of the building due to lightning which did not cause fire; minor damage such as cigarette burns on carpets, etc.

MAIN PROVISIONS

Not leaving the place unguarded for 30 days or more. Claims should be presented within 5 days of damage occurring.                                 

Rev 06/08