home fire

“HOGAR SEGURO 2000” HOME FIRE POLICY
Extract

WHAT CAN BE INSURED? 

Homes and/or their contents: policy can only be used for single dwellings.  No commercial buildings or apartments. However, up to 20% of the area can be used for “safe” commercial activity – e.g. office, store, boutique.

AGAINST WHAT PERILS? 

There are four coverages:  “A”  covers fire and lightning; “B” covers damage caused by mutiny, strikes, vandalism, hurricane, cyclone, explosion, smoke, falling objects, water spillage, leaks, 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.

WHAT IF THE HOUSE IS RENTED? 

The tenant covers his household effects. The landlord insures the house itself.

THE COST? 

Primary coverage A costs 0.0672% of the value. A+B costs 0.0896%. A+CD costs 0.2212%. Complete coverage A+B+CD costs 0.2436%. In addition, premiums are taxed 13%. Example of all-in cost: A+B+CD for a $100,000 home would cost $243.60 per year, plus 13% tax equals, $275.27

HOW IS THE VALUE ESTABLISHED?  

You base it on ESTIMATED REBUILD COST, less depreciation for every year that the house is old or since it was extensively refurbished, at the rate of 2% per year for wooden buildings, or 1% for masonry buildings. Note: INS automatically increases insured amounts every year at policy renewal time following an index of increases in construction costs.

WHAT ABOUT CONTENTS ?  

Estimate the value based on current prices in Costa Rica.  INS does not ask for a comprehensive list, but you should itemize single articles worth US$1,500 or more. It is unusual to insure contents of masonry houses.

IS THERE A DEDUCTIBLE? 

For B coverage, deductible is C.20,000 per claim. For hurricane damage it is 20%. For CD coverages, deductible is 1% of the total insured amount with a minimum of C.50,000.  Note: INS frequently modifies deductibles.

EXCLUSIONS

Water damage attributable to poor maintenance or carelessness; damage to the electrical system or contents of the house due to lightning which did not cause a fire; damage resulting from war, invasion, revolt, etc.; minor damage such as cigarette burns on carpets, etc.

MAIN PROVISIONS

Not leaving the house unoccupied and unguarded for 30
days or more. Not keeping combustible materials in house. Claims should be presented within 5 days of damage occurring.

Rev 04/08