In Costa Rica, no law requires a homeowner to insure their house. And many foreign owners don’t — or do it badly — in a country that sits in an active seismic zone. Here is what homeowners insurance really covers in 2026, what it costs, and the traps that mostly affect owners who don’t live on site year-round.
1. Mandatory? No — except in two cases
Home insurance is not mandatory in Costa Rica. Two situations make it unavoidable, though:
- A loan from a Costa Rican bank: the bank generally requires property insurance for the life of the loan. We cover lending terms in Costa Rica mortgages for foreigners.
- A condo: the condominium normally insures the structure and common areas, and you insure the interior and your contents. You still need to check what its policy actually covers.
2. Who provides it?
The insurance market has been open to competition since 2008; before that, the Instituto Nacional de Seguros (INS) held a monopoly. Several companies now insure homes, including INS, Mapfre, ASSA, Davivienda Seguros, Sagicor, Oceánica, Seguros Lafise and Adisa. You do not need to be a resident to buy a policy.
3. What a policy covers
| Coverage | What to know |
|---|---|
| Fire, lightning, explosion | The core of every policy. |
| Earthquake, volcanic eruption | Included in comprehensive policies, with its own deductible. |
| Flood, landslide | Usually included; landslide may no longer be offered on new policies in some high-risk areas. |
| Falling trees, vehicle impact | Often part of the basic coverage. |
| Contents and theft | Optional. The premium runs around 1% a year of the value of the items declared. |
| Liability | Not always automatic. Essential if you rent: at least $50,000 is commonly recommended. |
4. What it costs
As an order of magnitude, homeowners insurance costs 0.2% to 0.3% of the insured value per year. A few published benchmarks:
- a 200 m² (≈ 2,150 sq ft) home in a medium-risk area: $300 to $800 a year;
- a $600,000 home with $40,000 of contents and $50,000 of liability: about $1,557 a year;
- a home insured for 100 million colones: between 14,773 and 17,184 colones a month depending on the insurer (2022 survey).
5. The traps that mostly hit absentee owners
Insuring the right value
What you insure is the rebuilding cost of the house, not its purchase price: land does not burn or collapse. Insuring the purchase price means paying for nothing; insuring too low means risking a reduced payout. Our guide Building a house in Costa Rica gives the construction costs per square meter to use as a benchmark.
The vacant home
It is the most common situation for foreign owners, and the most often overlooked: check what happens to your coverage when the house is empty for weeks or months. Theft and damage that worsens because nobody noticed are the first coverages affected.
The rented home
Renting, especially short term, changes the risk: tell the insurer and add adequate liability. A claim during an undeclared rental is a classic source of disputes.
Being refused
Insurers can decline some properties: wooden roofs, flood-prone lots, steep slopes. For a property like that, get a quote before making an offer, not after closing.
The seller’s policy
Some older coverages — landslide in particular — are no longer offered on new policies in certain areas. Taking over the seller’s policy at closing can be worthwhile: ask. And note that theft coverage can take several weeks to become effective on a new policy.
6. What to ask for before you buy
- The seller’s current policy, its coverages, deductible and claims history.
- For a condo, the condominium’s policy: what is covered, up to what limits, and what remains your responsibility.
- A quote for your own policy, especially if the property is on a slope, near a river or has a wooden roof.
- The vacancy and rental conditions, written into the contract rather than promised over the phone.
Frequently asked questions
Can a non-resident insure a home in Costa Rica?
Yes. Buying a policy does not require residency.
Is earthquake damage covered?
Yes in comprehensive policies, but with a deductible, commonly around 1% of the insured value per claim. Read it before signing: it determines what you will actually receive.
In a condo, who insures what?
Normally the condominium insures the structure and common areas, and each owner insures the interior of their unit and its contents. Check it in the condominium’s policy and bylaws.
How much should I budget each year?
0.2% to 0.3% of the insured value per year for a house, more with contents and liability. We put this line in context with all the others in The real annual cost of owning property in Costa Rica.
