Category Fire Insurance

Why do I need fire insurance in a cement condominium? Click on the link from our friends at Panama Guide to see this scary video...

In Panama, we separate coverage for "Structure" and "Contents". In order to apply for structure coverage we need:

1. $$$ value of structure (not including land). A recent "avaluo" (appraisal) or pics will help.
2. Name of insured (Owner)? Is the policy to be issued in your name or that of a Corp. or Foundation?

In order to issue coverage for the Muli-risk Homeowners contents coverage, we will need:

1. $$$ value of the contents? Furniture, appliances, electronic equipment, artwork, jewelry
2. Exact address of the residence? Name of the insured...should be issued in your name or name of renter.

Two men were injured recently in an Explosion/Fire at a condo in Bethania. The victims were doing maintenance in the kitchen/laundry area of Apt. 5-A when the gas blew! One is in serious condition, see the La Prensa link here:

A study on the seismic risk of the western city of David, Panama, presented today by the Government and the World Bank, found that 35% of homes are vulnerable to an earthquake, and recommended a series of measures to minimize the impact of a possible natural disaster in the area.

Here is an extract describing coverage available from a large multinational insurer here in Panama. The coverage is available within a multirisk comprehensive homeowners policy at a very competitive rate:

The homeowner's multi-risk contents package includes all the coverage of a standard fire insurance policy, as well as, personal/general and fire legal liability up to $100,000. The multi-risk package also covers Employers liability (domestic employees) up to $20,000,

Since we do not insure land, fire insurance is quoted for the "structure" based on the purchase price/appraisal or estimated reconstruction cost. Remember, in Panama we separate structure and contents policies.

The standard Panama "structure" fire insurance policy will usually include coverage for fire, explosion, lightning, earthquake, windstorm, debris removal, flood and water damage, common water damage, filtration and leaks, and other coverage.

With the occurrence of a large "Waterspout" in the vicinity of Punta Paitilla/Pacifica on Christmas Day several years ago, I was asked to express an opinion about the coverage available in the average Panama Fire policy.

Why should I get an appraisal of my home or condo in Panama?

Fire insurance policies have an 80% coinsurance clause that will affect the $$$ amount you receive in the event of a claim for a fire or covered loss. You must insure the property for at least 80% of the actual $$$ value to receive 100% of the amount of total or partial claim.