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Amazing but true! Most of the homeowner’s we know in Nicaragua do not have house insurance.
In Canada this is unheard of. In fact, you can’t even get a mortgage if you don’t have insurance. Here in Nicaragua you can’t get a mortgage at all. So … the home you pay cash for … is yours to care for as you please.
But is neglecting to insure your home in Nicaragua wise? Presumably not. Hence our research into this topic.
Seguros Lafise: Our Insurance Company of Choice
When it comes to banking, vehicle insurance and our SmartMoney account we have always had great service with Banco Lafise Bancentro. Our account manager, insurance broker (and even the bank manager) are always just a WhatsApp message away.
We use Lafise and so all information in this article is based on our personal experience. But it should be noted that ASSA, Seguros America, Iniser and Mapfre also offer insurance here in Nicaragua.
The First Step to Protecting Your Nicaraguan Home & Belongings
Insurance quotes will vary due to many factors. The area of the country you live in or proximity to the ocean may come into play. Rates and coverage will differ from one company to the next. The main factor in determining premiums is the value of your home. The preferred method of valuating your home is to get a professional appraisal from a company your insurance agent recognizes. The average cost to do this is $150 USD. If you’d like to forgo the appraisal your broker may be willing to accept your personal valuation.
What does homeowners insurance with Lafise in Nicaragua cover?
With Lafise home insurance you’ll have basic coverage of the structure in the event of any of the following:
- Fire, lightening and explosion
- Damage from riots or strikes
- Earthquake, tsunami, volcanic eruption
- Pillage or looting in the case of natural catastrophes
- Flood (from the ground up, not the roof down)
- Cyclone, hurricane typhoon, tropical storm, winds, hail, accidental collisions of aircrafts and objects dropped from them, land or water vehicles
- Water damage (inspection required)
NOTE: Furniture, household goods, sports & hobby equipment, kitchenware and glassware are all covered in the situations listed above. Items such as jewelry, precious metals and rare collectables are not.
The following would also be covered at no extra cost:
- Rent payment up to $500 USD per month for 3 months
- Debris removal
- Personal accidents to immediate family
- Home assistance
- Civil liability
- Landslide or detachment, dragging of earth and other foreign matter
- Falling objects
- Window breakage
Insurance for Vacation Rental Homes
If you do not live in your home year round your policy will look slightly different than the example above.
Differences include the following:
- The items listed as “insured at no extra cost” are not included or available
- To add protection from theft caused by a break in you must have security camera(s) installed on the property
The premium payments would remain the same.
The Quote & the Math Behind It
The same math will be used to calculate premiums for most homes in San Juan del Sur.
Take a home valued at $200 000 USD for example. Multiple 200 000 x 0.004 and you’ll get an annual base rate of $800 USD. In addition to the base rate there are 3 taxes (2% DT, 15% IVA and 2% CB) — that will be added on — bringing the premium up to $946.40 USD per year (or $78.87 USD per month).
What about theft coverage due to break & enter?
Coverage for theft of contents due to break and enter is extra. The cost is $50 USD per year per $10 000 USD of contents.
NOTE: In order to be eligible for this coverage you must have an onsite caretaker or security camera on the property. A list of items you would like to insure at the time the policy commences is also required. In the event that you need to make a claim you must provide a police report stating there was a break in. Leaving windows and doors open voids coverage.
What about the deductible?
The deductible is 10% of the amount of the estimated damage or loss of property.
How to Pay The Premium
Premiums can be paid monthly or yearly. If you have a Lafise bank account you can pay your premiums through automatic debit. Lafise also accepts national and international credit cards. Or you can pay through our favorite app SmartMoney. Failing these options you can pay yearly in cash at your nearest Lafise branch.
Takeaway
When our home in Canada burnt to the ground we found out first hand what happens when you blindly sign up for an insurance policy. Getting to know what you are insured for — and making sure you’re not under insured — is key.
Remember that every home is unique. Policies and rates will differ slightly from company to the company. And plans may change from one year to the next. Please consider the information provided in this article just a start to your research.
Questions about homeowner’s insurance in Nicaragua? Interested in getting coverage?
Use the contact from below to connect with our Lafise agent Yuri Lopez in San Juan del Sur. Yuri can go over their plans in detail and provide a quote.