Earthquake Insurance for Condo Owners in Panama
Short answer: In a Panama condo (P.H.) there are two layers of insurance. The building policy, contracted by the owners’ meeting, covers common areas such as the structure and facade; Law 284 of 2022 contemplates coverage against fire, earthquakes and fires caused by earthquakes, plus liability, extending to the whole building (art. 25). Your unit policy (multi-risk) covers what is inside your apartment and is optional (art. 56). After a quake, report the claim in writing within your policy’s deadline.
Two policies, two jobs
| Building policy | Your unit policy | |
|---|---|---|
| Who contracts it | Owners’ meeting, via the board or manager | Each owner |
| Covers | Structure, columns, beams, slabs, facade, common areas | Finishes, furniture, interior partitions, contents |
| Who pays the premium | All owners, through common-expense fees | The owner |
| Law 284 | Art. 25 | Art. 56 |
What to check in the building policy
- Earthquake included? Some policies cover fire and make earthquake an add-on. Get it confirmed in writing.
- Insured amount. It should reflect today’s rebuilding cost.
- Deductible. For earthquakes it is often a percentage of the insured amount. Ask what that means in dollars.
- Liability. Covers third parties, for example a facade fragment that falls on a car.
- Premium paid and policy in force.
- Claim deadline. The board should know it before an emergency.
After an earthquake: claim steps
- Photograph everything before repairs.
- Notify the insurer in writing and keep proof.
- Hire a licensed engineer or architect; the board can hire technicians when needed (art. 80).
- If the Fire Department certifies the building as at risk of collapse, the owners’ meeting decides to rebuild or demolish with at least 75% of units representing at least 75% of total value (art. 105).
- If an insurance payout is collected, it goes first to reconstruction when the owners’ meeting so agrees (art. 106).
If the building has no earthquake coverage
Repairs are funded by the mandatory Contingency Fund (minimum 1% of annual income and fees, arts. 47 and 48), a special assessment approved by the owners’ meeting (art. 35) or an urgent extraordinary disbursement by the board from surpluses or reserves (art. 80). See Special assessment after the earthquake: can I refuse?.
Frequently asked questions
Does the building policy cover the inside of my apartment?
Usually not. It covers common areas; your unit depends on your own multi-risk policy (art. 56).
Is earthquake insurance mandatory in a Panama condo?
Law 284 contemplates that the owners’ meeting contracts it for the whole building (art. 25). Check your building’s bylaws and current policy.
Can foreign owners buy a unit policy from abroad?
Ask a Panama insurance broker. Many offer multi-risk policies for non-resident owners.
Who decides which insurer to use?
The owners’ meeting, typically comparing quotes prepared by the board or manager.
Based on Law 284 of 2022; not legal or insurance advice. Read your own policy.
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Cover image: Eric Fischer, CC BY 2.0, via Wikimedia Commons. Illustrative image.