Who Pays Earthquake Damage in a Panama Condo?

Short answer: Damage to common areas and structure is paid by the building (all owners, through common fees, insurance, the Contingency Fund or an approved special assessment). Damage inside your own unit is your responsibility, covered by your own policy if you have one.

Common areas vs. your unit

Common areas (paid by the building). Foundations, columns, beams, slabs, roof and other structural parts are essential common property (Law 284 of 2022, art. 16). Each owner contributes according to their share of common expenses (art. 25).

Your unit. Finishes, furniture and interior partitions are yours. That is why the law allows each owner to carry a multi-risk policy on their unit (art. 56).

The building’s insurance

Article 25 contemplates insurance against fire, earthquakes and fires caused by earthquakes covering the whole building, plus third-party liability. If your building has that policy, the board must report the loss and manage the claim. Ask for:

• Policy number and insurer.
• The deadline to report.
• What it covers and the deductible.

If the damage is severe

If the Fire Department determines the building threatens collapse, the owners can decide to rebuild or demolish with the favorable vote of at least 75% of units representing at least 75% of the building’s value (art. 105). If insurance is collected, it goes first to rebuilding when the owners so agree (art. 106).

Where the repair money comes from

1. Building insurance, if it covers the event.
2. Contingency Fund, with 51% approval of units (arts. 46 to 48).
3. Special assessment, approved by the owners’ meeting (art. 35).
4. Urgent extraordinary disbursement by the board from surplus or reserves, only if urgent and indispensable (art. 80).

What to do now

• Photograph and film damage in your unit.
• Ask management in writing for the building’s policy and claim status.
• Check and report your own policy.
• Attend the meeting or give a proxy (accepted until quorum is verified, art. 68). Foreign owners can send an electronic proxy.

Frequently asked questions

Can I be forced to pay a special assessment?

If it was approved by the owners with the legal percentages (51% of units current on fees on first call or 30% on second call, art. 35), yes, it is binding.

Does my unit’s insurance cover common areas?

It depends on the policy. Some include extensions for third-party damage and common property (art. 56). Check with your insurer.

Informational only, based on Law 284 of 2022. Consult a lawyer about your case.

Related guides

• Special Assessment After the Earthquake: Can I Refuse?
• Quorum and Votes in a Panama Condo Meeting (Law 284)
• Cracked Column in a Panama Condo: What to Do Now
• Is It Safe to Move to Panama in 2026? Expat Guide