The following FAQs were prepared by Avanto Insurance Broker, a private insurance firm in Costa Rica, working with Alegria to give an overview of the insurance possibilities in Costa Rica, as well as the insurance needs of the community. Thank you, Gustavo!
www.avantoseguros.com gsolis@avantoseguros.com +506-8982-4242
Insurance Broker: Gustavo Solís H
Overview of Insurance in Costa Rica
History
Since 2008, Costa Rica has had an open insurance market. Before 2008, there was only one government-based insurance company, whereas today there are 13 private insurance companies. These companies offer a wide array of insurance products.
The SUGESE (Superintendencia General de Seguros) is the maximum authority and regulator of this market. It is the Entity responsible for the licensing and regulation of businesses and people involved in the areas of insurance, reinsurance and public offering. SUGESE is attached to the Central Bank of Costa Rica and works under the direction of the National Financial System Supervision (CONASSIF).
Types of Insurances offered include:
1. House
2. Automobile
3. Liability
4. Health
5. Life
6. Workers Compensation
What ARE THE Functions of the Insurance Broker?
Present the best options of insurance protection required by the client, with a simple comparison
Find the best options from all the Insurance Companies available on the market
Determine special risks and present options to best mitigate claims
Provide all the assistance during the claims process that are protected by the policy.
Does the Insurance Broker charge any extra fees for their services?
No, all the fees are paid by the insurance company without increasing the cost or premium to the client.
Is there any online insurance service to conduct transactions?
The Insurance Broker could provide online services, in order to simplify processes and also protect clients according to COVID-19 protocol.
What are the most common insurances for residences?
Protection for the building and content
Liability coverage
Personal accident
Workers’ compensation*
*Mandatory Workers’ Compensation: A Workers’ Compensation Policy will always be required during any construction. This basically protects all of the workers from accidents during the construction process. The Workers Compensation Policy can only be acquired from INS (National Insurance Company) through your Insurance Broker. All general contractors are required to carry this coverage.
How much is a Worker Compensation Policy for my future house?
This premium is calculated based upon the construction value of the house, which in Costa Rica is dictated by the Professional College of Engineers and Architects (CFIA). The CFIA sets the construction value according to your blueprints presented by your Engineer or Architect. It is generally in the 2-3% range. During the construction process, reputable builders will have insurance for their workers. In fact, the construction professional must present proof of insurance for his workers in order to obtain a building permit. It is called “seguro riesgos del trabajo” by Costa Rica’s government-owned insurance company (INS), and it is similar to workman’s compensation insurance. It covers injuries that are common to a construction project.
HOW DO I BUY INSURANCE?
All the paperwork will be prepared by the office of the Insurance Broker
Everything can be completed electronically
Your Insurance Broker will help with how to get a claim presented in case of an accident
Contact your Insurance Broker who will file the claim on your behalf at no additional fee
What if I want to change my policy?
Depending on the policy acquired, at every renewal anniversary you have the option to change Companies, or other conditions of your policy.
If you cancel before the expiration date of any policy, the insurance company will apply a cancellation fee and reimburse you the remaining premium.
How do I pay for insurance in costa rica?
All insurance in Costa Rica can be paid with credit/debit card or wire transfer.
Do I need a National Bank account to have insurance?
It is not necessary to have an active bank account located in Costa Rica, though it is easier, in case of a claim, to have the insurance and bank account under the same name.
Do I need to have National Residency in Costa Rica to buy insurance?
No, National Residency is not required. Insurance can be purchased using a valid Passport and a current tourist visa.
HoMe Insurance
What kind of insurance can I find for my house?
You can find insurance and coverages for fire, natural disaster, liability and other coverages for house insurance.
Can I insure the contents of my home?
Yes, contents can be included.
Is my car covered with my house insurance?
No, you need to buy separate insurance for car, ATV or a motorcycle.
How Do I buy my Comprehensive house insurance?
This is a really easy process, since you only need the legal paperwork from the person or corporation owning the property.
Sign all the paperwork that will be completed by the Insurance Broker
Pay for the premium
What does a Comprehensive house insurance policy include?
This is a policy in which you can include: building + contents + workers compensation for housekeepers or house workers + liability + personal accidents + arts + jewelry + pools + ranch
HOW IS THE COST CALCULATED FOR HOUSE INSURANCE?
Insurance Companies use the year of construction, replacement value of the building and contents, and applies special discounts because of security and safety systems installed to the house (cameras, alarms, others).
WHEN DO I NEED TO UPDATE MY COVERAGE?
It’s always recommended to update insurance coverages every year.
Car Insurance
DO I need to buy car insurance?
It’s not mandatory but always recommended, since there are a large group of uninsured motorists in the country.
Can anyone driving my car be protected from my insurance coverage?
Yes, the only requirement for an occasional driver is to have a valid driver’s license for the type of car and not be driving under the influence of alcohol or drugs.
What coverages can I get for car insurance?
Liability, Collision, Robbery and Theft, Fire, Flood, Medical, Property liability
Do I need to have National Residency in Costa Rica to purchase automobile insurance?
No, any automobile insurance can be purchased with just a passport and proof of ownership.
How is the cost calculated for car insurance?
Premiums for car insurance depend on the year, market value and experience of the owner/driver.
Health Insurance
What is health care like in Costa Rica?
For a small country, Costa Rica has excellent health care. Costa Rica’s universal health insurance program routinely ranks among the upper 25% of the world’s top healthcare systems. As well, it’s considered to have the best public health program in all of Latin America.
Do I need health insurance to live in Costa Rica?
It’s not mandatory to have health insurance, but always recommended.
How do I get health insurance in Costa Rica?
There are different types of health insurance from high and low deductibles, to national and international coverage. Private health insurance is an important tool for all foreigners living in Costa Rica. Residency papers can take up to 18 months to be processed. You can’t be part of the Costa Rican healthcare system until you have your papers. It’s important to have your own independent coverage while you are waiting.
Overview of Costa Rica’s National Health Insurance System
Universal health insurance and social security have been a part of Costa Rican society since the 1940s. The system is often referred to as “La Caja”. This is a short form of “Caja Costarricense de Seguro Social” or the “CCSS”. The Caja Costarricense de Seguro Social is funded primarily through payroll taxes based on individual income. This usually amounts to 7% – 11%. In addition to La Caja, there is also “INS”. This is short for “Instituto de Seguro Nacional”. It is a form of private health insurance run by the Costa Rican government. INS coverage includes dental work, optometry, and annual check-ups. It also takes care of coverage for visiting private hospitals and clinics. The government makes ongoing investments in both systems, paying for new private hospitals, new equipment, and staff hires.
What kind of PRIVATE health insurance IS AVAILABLE?
Private healthcare insurance in Costa Rica gives access to an even higher standard of quality of medical care and facilities than public healthcare does. Under Costa Rica's private healthcare system, it is also possible to pay in cash for treatment at private facilities.
There are a number of health insurance plans available to internationals living in Costa Rica. A global medical insurance plan offers several benefits. You will be able to access care anywhere in the world, including in your home country. You will also have additional access to a wider range of private medical facilities in the country with shorter waiting periods. In short, you have access to the best care and highest quality services to cover your costs should you get injured or sick.
While researching insurance plans for Costa Rica, you might hear about health discount plans. Sometimes the two terms are used interchangeably, but health insurance plans and health discount plans are completely different things. Many physicians who work in the public Costa Rican health care system also run their own part-time private practices. As private practice visits are not covered by the public health insurance system, there is a cost associated with these visits. A health discount plan is a budget-friendly tool that allows patients without INS or other private insurance coverage to plan out their costs of private Costa Rican private healthcare. In exchange for a monthly fee, you get a certain number of discounted appointments, blood tests, and x-rays each year. For patients who don’t hold private insurance policies but still take advantage of private facilities, a health discount plan can help them plan their health expenditures.
Does Medicare cover you in Costa Rica?
No, Medicare's coverage does not extend abroad. ... Coverage is provided only in the US.
Does private health insurance cover you abroad?
The answer is usually no. Health insurance does not cover overseas medical expenses. It’s always recommended to double-check that information with your insurance broker.
Below are some samples of insurance quotes, to be used as a guide as each policy has different guidelines and variables. An insurance broker would be delighted to help customize individual quotes.
If you need further information, PLEASE contact us at:
gsolis@avantoseguros.com
+506-8982-4242
Insurance Broker: Gustavo Solís H