Property Insurance In Costa Rica: Understanding Home Owner And Vehicle Coverage

by Quatro Legal Corporate Team | April. 10, 2024 | Article, Corporate

When investors and expats begin their relocation or investment in Costa Rica, one of the primary recommendations from our team at Quatro Legal is to secure property insurance in Costa Rica. Understanding and managing this insurance is crucial, as it protects against potential losses of property or incurring repair and replacement costs.


Home Insurance in Costa Rica:

Property insurance in Costa Rica covers not only the physical structure of a home but also the different areas within it and the objects found therein against accidents or situations that may cause damage. The goal is to provide economic protection for the home and its owners against possible material damages.

Owners must carefully select which parts of the home will be covered by the insurance. Protection can be extended to specific areas and objects within the home. High-value items often require separate policies due to their unique nature and risk.

It’s important to ensure that the policy covers rooms, social areas, garages, storage areas, basements, attics, and gardens. Notably, key coverage options for home insurance include:

  • Liability coverage
  • Theft coverage
  • Damage coverage

Clients have the flexibility to choose which coverages to include or exclude based on their needs. Additionally, the value of coverage should be based on a thorough risk analysis.

For items exceeding certain values, it’s crucial to declare these explicitly to the insurer, along with the respective invoice. For instance, jewelry requires a separate policy, including an appraisal and the invoice, to facilitate a special insurance process by the company.

If items are acquired post-policy initiation, they must be declared to the insurance company to ensure coverage. This often overlooked aspect is vital when contracting property insurance in Costa Rica.


Vehicle Insurance in Costa Rica:

Another common insurance need is for vehicles, which covers damages to a vehicle or to a third party as a result of an accident. This insurance provides both protection and support, including medical and economic benefits that vary based on the insurance type and provider.

When choosing a vehicle insurance policy, factors to consider include:

  • The coverage scope offered by the company
  • The insurer’s provider network within the country
  • The insurer’s responsiveness and efficiency in claim handling

The types of vehicle insurance coverage available in the Costa Rican market include:

  • Civil liability for bodily injury to third parties
  • Direct damage to vehicles and belongings
  • Theft and/or robbery liability
  • Optional extended coverages

Mandatory Automobile Insurance (SOA) is required by law for all drivers on public roads in Costa Rica, providing basic coverage for fatalities and injuries from traffic accidents, regardless of fault.

This compulsory insurance covers the death of victims of traffic accidents, whether or not there is fault on the part of the driver, injuries, and driver’s fault or not, injuries and death of persons in an accident caused by civil liability, among others. However, it has very limited economic coverage.

The following services are included in its coverage: medical assistance, prostheses and medical devices, cash benefits corresponding to compensation for incapacity, travel expenses, among others.

At the moment the only insurance company that offers this insurance is the National Insurance Institute (INS) the premium rate will vary according to the parameters established by the insurer and must also be authorized by the Superintendencia General de Seguros (SUGESE), which establishes a parameter for the risk rate at the moment of calculating the rate (this may vary).


Expert Legal Support from Costa Rica Lawyers:

The process of managing and claiming insurance in Costa Rica can be complex. Our Costa Rica law firm provides comprehensive support to navigate these challenges. At Quatro Legal, our Costa Rica lawyers specialize in helping expats and investors ensure their assets are well-protected with the right insurance policies.

For detailed assistance with property insurance in Costa Rica or to discuss your specific insurance needs, contact Quatro Legal. Our team is dedicated to providing expert guidance and ensuring your investments in Costa Rica are secure.

For more information please contact MICHELLE MUSSIO at

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