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Hurricane, Flood and Wind Insurance in the DR

Hi,

We are looking at homes now (condos), and I'm not getting real good answers as to whether the Homeowners Association  fees cover these insurance items in case of a natural disaster. Should they? Are these policies even available in the DR? If not, what happens when not only is your unit damaged/destroyed, but when the entire building or complex is hit by disaster?

Thank you for any information you can share!
JOHN

Your homeowners association  coverage will NOT cover anything that is yours including your unit.  I am happy to  recommend a  good broker who I have used for  12 years here.

Zaide Cavagliano   zalba[at]coalcava.com   She speaks English and will be happy to give you quotes and find the right company to help you!

Thanks once again!

How much does insurance cost on avg for a 2 bed home 1200-1400 sqft.? And Do you pay once a year?

To look at cost of insurance there are too many variables to even begin answering that question!

Get specific on values and coverage and then ask the broker. Here it isnt done by sq feet, its done by value.

We originally had insurance but it became very expensive so dropped it. 
When we owned our condo in Cabarete we carried insurance because we used it as a rental unit .  However with a condo the  complex has to have insurance that covers the building and then everything from the inside walls in is your responsibility.

Bob K

Thanks both Bob and Planner....we plan to build so would want coverage because I wouldn't want to be left with nothing if a big storm hits...I just wondered if insurance is somewhat comparable as here in FL. We pay about $1,850 for homeowners and flood Insurance for 1770 sq Ft new home with pool appraised at $270k. In DR we want to spend no more than $150k to build a 2 bedroom home.

A couple of pointers.  Don't get confused between the Condo Association and the homeowner's Association.  Can be 2 separate groups that serve different purposes.  Having said that the Homeowner's Association could have a policy that provides "group" insurance for the inside of your condo whereas the Condo Association is about Administration of the shared or common grounds, infrastructure etc. and you could also have a group insurance policy for that.   Usually 3rd party liability insurance.  2 very separate purposes that have a different Board of Directors, additional fees and different goals and responsibilities.

Yes condo and home insurance here can be very expensive in the DR.  Especially if you apply North American rules where you cover everything 100%.  Not really affordable or practical here but the insurance people will never tell you that.  Decide what really needs covering (in value) and then insure the value that you want to insure.  For example, you have a $500K home, in 90 % of the instances of a major Hurricane or earthquake (not very probable, you might take a 50% loss so insure for $250K.  If you still can't afford the insurance, insure what you can afford $50K.  Better than nothing and will most likely give you all of the coverage you need.  Make sure it includes theft, belongings, windows, glass and natural disasters like hurricanes and earthquakes.

Hope this helps...

In the DR is not used to buy insurance coverage thru Homeowners Association. The way is that each owner buy insurance coverage for their own condos.

if nature desaster ocurre, insurances companies would pay each owner individualy.

In case you have other doubt please let me know.

@dominicanadamike the point that you recommend is a wrong way to buy a home insurance, because when a disaster occur the insurance payment will be proportionally between loose and the real property value.

for example, if your home value is US$500K and you only buy a insurance policy for US$50k when any disaster occur you only will receive a 10% of what you loose.

Thanks for the clarifications! And welcome to the forums!

Thank you all!
JOHN

That is whey we do not insure our home.
Calmly watching Irma at the moment...

Bob K

Thanks Zalba,

Are you an Insurance representative or are you going be your experience here?

Funny, the insurance company never even asked the value of the home or validation of the property.  We specifically talked in terms of coverage and NO proportional value was mentioned.  It's an absolute value to a maximum 100% coverage to a limited amount.  We'll see what happens if I ever have to make a claim...

Besides that, most insurance companies in the DR find a way to not pay you anyways regardless of the circumstances...

I normally prefer to take my lumps and just put away the insurance money for my own repairs when necessary.  It hasn't been too bad so far and that includes having to replace 360 sq. metres of clay tiles on my roof after the last tornado hit my house.

I should also mention, personal methods do not work for everyone.  I have invested strongly in my house and it has easily survived 2 hurricanes, 1 tornado and an earthquake.  I just do a lot of praying and hope that we survive the next one as well...

Welcome to the DR.

Yes she is an insurance broker Mike. I had a serious car accident  almost  2 years ago and it went very well.  She has a staff that are very efficient and  it went quite smoothly for here!  I paid  5,000RD as my deductible and not a peso more so I was pleased.

Now the mechanic and his shop were another story.

How often does a hurricane cause serious damage in dr?  Whats the current feel in reference to Irma?  Ive personally never heard of any major disasters affecting dr.

Do more homework

Its not just hurricanes its tropical storms and tropical depressions. And its earthquakes but they are much rarer.

Sounds about right Planner.  I'm glad to hear you made out reasonably well after the accident.  You said you paid $5000 pesos, was the accident your fault?

No  it was not my fault. That was the deductible on my full insurance. They provided lawyer, was represented at the fiscal and did not deal with the 23 year old who hit me. It was all handled!

Ok will do thanks.

ok.  it sounds like the other party was a dead end. otherwise the other party's insurance should have reimbursed you your deductible.

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