Renters insurance: what it covers and what to check in a policy

Anyone renting a house or an apartment in Costa Rica tends to assume that the owner's insurance covers everything. It does not: that policy generally protects the building and leaves out the furniture, the appliances and the tenant's liability towards the landlord and the neighbours. This guide explains what you can insure, how to calculate the amount and what to check before signing, whether you are searching among homes for rent in Costa Rica or already have a lease.

What does renters insurance cover and what does it leave out?

In Costa Rica, what is known as renters insurance is usually a home policy designed for someone who does not own the property. It generally combines two covers: the goods you keep inside the home (furniture, clothing, appliances and electronic equipment) and civil liability, that is, the damage you accidentally cause to the rented home or to third parties. Some policies add assistance services, such as an emergency locksmith, plumber or electrician, which solve small problems without going through a claim.

What is usually left out: normal wear and tear, damage caused on purpose, mould or damp that builds up slowly, high-value items that were not declared (jewellery, art, collections) and goods that leave the house, such as a laptop in the car, unless the policy says so expressly. Nor is rent you fail to pay something a standard home policy covers: that is an obligation under your lease, not damage to your belongings.

Insurers operating in Costa Rica are supervised by the Superintendencia General de Seguros (Sugese), and each one drafts its own terms. That is why two policies with the same name can cover different things. The only valid reference is the general terms and the specific conditions of the policy you are offered, not the brochure or a salesperson's explanation.

What does the owner's insurance protect and what does yours protect?

The landlord usually insures what is his: the structure, the roof, the walls, the electrical and water installations, and sometimes the furniture or appliances he provides with the house. If a fire or an earthquake damages the home, his policy pays for repairing or rebuilding the building. What that policy does not do is pay you for the sofa, the refrigerator or the clothes you lost, because those goods do not belong to the insured.

Nor does it protect you against the owner. If a mistake of yours causes the damage and the landlord's insurer pays, under many policies that insurer can later claim back from you what it paid. Ask the owner whether his policy includes a waiver of that claim against tenants; if it does not, your own liability cover becomes even more important.

The amount the owner insures is the construction value, not the market value of the home. The home prices in Costa Rica shown in listings include the land, which does not burn or flood; that is why the insured sum for the building is usually lower than the asking price. If at some point you move from renting to searching among homes for sale in Costa Rica, that building policy will be your responsibility, and with a mortgage the bank usually requires it.

How should you insure your belongings and for how much?

Furniture, appliances and electronic equipment are the core of the policy. The first decision is the type of value: at replacement value, the insurer pays what it costs to buy an equivalent new item today; at actual cash value, it deducts depreciation for age and use. The difference shows with a refrigerator that is several years old or a computer: at actual cash value, the payout may not be enough to replace them.

The most common mistake is underinsuring. Many policies apply the average clause, also called underinsurance: if you declared less than your things are worth, the insurer pays only the proportional share of the loss. Overinsuring does not help either, because no one will pay you more than you lost. Even someone renting among cheap homes for rent in Costa Rica usually has more value inside than they imagine once they add up clothing, kitchen and equipment.

To set the amount to insure, the most useful tool is a room-by-room inventory. These steps help you do it in an afternoon:

1. 1
   Walk through the house room by room and list every piece of furniture, appliance and equipment.
2. 2
   Next to each one, write what it would cost to buy new today in Costa Rica, not what you paid at the time.
3. 3
   Set aside high-value items, such as jewellery, instruments or photography equipment, to declare them separately.
4. 4
   Keep photos, serial numbers and receipts somewhere outside the house, such as a cloud folder.
5. 5
   Add everything up, use that total as the insured sum and update it when you buy something significant.

What does liability cover protect against the owner and the neighbours?

It is the cover most often forgotten and the one that protects the most. Under Articles 47 and 50 of the Ley General de Arrendamientos Urbanos y Suburbanos (Law 7527), the tenant must keep the property in good condition, is liable for damage caused by his own fault or negligence or that of the people who live with him or visit him, and must repair the damage caused by people who live in or visit the property. In practice, the leak a guest left running or the short circuit of a badly connected appliance can end up on your bill.

The policy's liability cover pays, within its limit, for that damage to the rented home and for damage that spreads to third parties: water running down to the apartment below, fire spreading to the house next door or a person injured inside the home. In an apartment or a condominium, where walls and pipes are shared, this risk weighs more than in a detached house.

This cover usually costs little compared with what a single claim from a neighbour can cost. Check that the policy includes it expressly for tenants, sometimes under the name of tenant's or occupier's liability, and that its limit makes sense against the value of what you could damage: the house itself and what surrounds it.

What should you check in the policy before buying it?

Before signing, ask for the general terms and the specific conditions, and read them with three questions in mind: how much you pay on each claim, what is not covered and how far the insurer goes. The premium matters less than those answers: a cheap policy with a high deductible may never pay for small damage.

In Costa Rica it pays to ask carefully about natural hazards. Earthquake, flood, landslide and wind damage often come as separate covers or with their own deductibles. Anyone renting near a river, on a hillside or on the Caribbean coast should see them written in the policy, not assume they are included.

Ask as well about the security measures the insurer requires: some policies make theft cover conditional on the house having working locks, bars or an alarm. If the lease or the condominium rules call for insurance with certain covers, compare those requirements with the policy before paying for it.

What should you do if there is a theft or damage in the rented home?

The first hours count. Policies usually set a deadline for reporting the loss and ask for evidence; a late report or one without documents is a frequent cause of rejected claims. These steps put the response in order:

1. 1
   Get people to safety and stop the damage if it is safe to do so: shut off the water valve or cut the electricity.
2. 2
   In case of theft, file a report with the Organismo de Investigación Judicial (OIJ) and keep the receipt.
3. 3
   Take photos and videos of the damage and of any forced entry before tidying up or cleaning.
4. 4
   Notify the insurer within the deadline set by your policy and ask for a claim number.
5. 5
   Inform the owner in writing, especially if the damage affects the home or a neighbour.
6. 6
   Hand over the inventory, the receipts and the list of what was lost, and do not throw anything away until the adjuster authorises it.

If the damage was to the house, your policy and the owner's may both apply: the landlord's pays for the structure and yours for your belongings and your liability. Talk to the owner before repairing, because, as a tenant, you are liable for damage caused by your own fault or negligence, and it is wise to agree in writing who repairs what.

If the damage was caused by a fault in the house, such as an old pipe or a roof that gave way, and not by a mistake of yours, say so with evidence from the first report. Do not accept in writing a fault that is not yours: that statement can weigh later in the claim and in your relationship with the landlord.

What we would do before buying the insurance

• Ask the owner for a copy or a summary of his policy to know what it already covers and whether it waives claims against the tenant.
• Make the room-by-room inventory and insure belongings at replacement value, with valuables declared separately.
• Insist on tenant's liability cover with a limit that matches the risk, especially in an apartment or a condominium.
• Compare at least two policies using the table in this guide: deductible, exclusions, limits and natural hazards.
• If your plan is to move from renting to buying, even among cheap homes for sale in Costa Rica, budget now for the building insurance, which will then be yours to pay.

Frequently asked questions

Can a renters policy serve as a guarantee for the lease?

Article 59 of Law 7527 says that any guarantee attached to a lease, whatever its nature, answers for the rent and for every other obligation arising from the law or the contract, unless expressly agreed otherwise. A standard home policy, as this guide explained, does not cover rent you fail to pay. If the owner proposes a policy as a guarantee, consult a lawyer or a notary before signing.

Do you need your own insurance if the owner already has one?

Generally, yes, if you want to protect what is yours. The landlord's policy usually covers the structure and the goods he provides with the house, not your furniture, clothing or equipment. Nor does it protect you against the owner: under many policies, if a mistake of yours causes the damage, the landlord's insurer can later claim back from you what it paid. Ask for a summary of that policy to know what is covered and what is not.

What happens if a visitor causes the damage?

Under Articles 47 and 50 of Law 7527, the tenant is liable for damage caused by his own fault or negligence or that of the people who live with him or visit him, and must repair the damage caused by people who live in or visit the property. That is why it is wise for your policy's liability cover to include damage caused by family members and guests as well. Check that condition in the policy before buying it.

This guide summarises the practice of renters insurance in Costa Rica in November 2026 and does not replace the advice of a lawyer or a notary, nor a reading of the terms of the policy you are offered. Covers, deductibles and exclusions vary between insurers: before signing, compare them in writing.