Panama Homeowner’s Insurance
Protect your Panama real estate investment.
Panama offers homeowner’s insurance, however, you must insure the contents and the building separately. Fire insurance is available for the structure and Multi Risk policies for the contents.
Panama Fire Insurance policies are similar to those found in the USA, Canada, and Europe. A typical Panama fire insurance policy covers fire, earthquakes, lightening, explosions, windstorms, falling objects, flood & water damages, and removal of debris afterwards.
Fire insurance policy rates differ depending on the types of construction and the home’s location. Cement buildings pay the lowest rate. A combination of cement and wood composites will pay a slightly higher premium. Wood structures pay the highest premiums. Structures located in or near major urban areas pay as better premium rate. A building located on an island and rural areas (including Bocas del Toro) will pay higher premiums.
A Panama Homeowner’s Multi Risk policy provides theft, fire, earthquake, explosives, windstorms & hurricane, smoke & water damage, and floods coverage. Multi Risk covers the contents while Fire Insurance covers the structures. Theft coverage including electronic equipment are covered on a percentage of the basic sum insured. General liability coverage can be up to $100,000 while an assault committed against the policy holder and family members can be up to $250. Ambulance services are also included. A policy can also include damages to neighbor’s properties by a fire originating on your property.
Normal coverage is limited to “depreciated value” of items insured. This means older items depreciate in value over time. This is why saving original purchase receipts for insured items is important in case a claim must be filed.
Multi Risk policy premiums for cement structures in major urban areas can cost around $70 plus 5% every year for each $10,000 policy. Some insurance companies offer a 5% discount for paying the full year’s premium within one month.
Homeowner’s insurance premiums are reasonably priced in Panama making it a worthwhile investment providing peace of mind in case a catastrophe would ever occur.