Does home insurance cover earthquake damage in Panama?

Residential policies published in Panama do provide for earthquake damage, but a public guide cannot confirm coverage for your home without your own contract.

The ASSA Hogar wording reviewed here provides for direct earthquake damage to buildings and contents within agreed limits; the MAPFRE Hogar wording lists the risk. By contrast, one set of SURA residential fire insurance conditions treats “fire and direct damage caused by earthquake” as optional cover and requires it to appear in the Condiciones Particulares. These are different contract examples, not promises to every customer of those companies. Sources: ASSA, pp. 12 and 15; MAPFRE, p. 1; SURA, p. 5

Ask your insurer or broker: “Did policy number ___, in force on the date of the event, insure direct earthquake damage to this property, and what limit, deductible, and exclusions apply?” If the answer is verbal, ask for the applicable clause and a claim number in writing. Ley 12 de 2012 gives the contracting party a right to a copy of the insurance contract and an insured person under a group policy a right to an individual coverage certificate. Source: Ley 12, art. 243(4)

Do not enter a building with visible damage or a risk of collapse merely to take pictures for an insurance claim.

SINAPROC advises people to stay away from and out of structures in those conditions and report cracks, leaning, or structural deterioration to emergency services. The post-earthquake re-entry guide covers that first decision. From a safe place, preserve the date and location of the event, calls, messages, and any photographs taken without putting yourself at risk. You can notify an insurer before you know the full value of the loss: the SSRP advises prompt contact even when the full extent is still unknown. Sources: SINAPROC, 2026; SSRP, claims process

If you see damage to a column or beam, distortion, or falling material, seek the assessment needed to make safety and repair decisions. The insurer reviews coverage; a structural inspection answers a different technical question. The date on which a crack was noticed does not, on its own, prove that the earthquake caused it. In the notice, state what you saw, when you saw it, and what you know about the event without turning a suspicion into a diagnosis. Sources: SINAPROC; ASSA, p. 15, direct damage; SURA, p. 5, direct damage

The complete policy answers four separate questions: which risk, which property, up to what amount, and under what conditions. A premium receipt does not contain all those answers.

1. Policy schedule or Condiciones Particulares: insured party, address, period of cover, insured property or categories, sums, deductibles, and selected covers. Under the SURA conditions examined, the earthquake endorsement is effective only when it appears in this document. SURA, p. 5
2. General conditions for your version: definitions, risks, exclusions, duties, and claims procedure. Do not replace your own copy with a PDF found online: one company may publish more than one set of residential conditions. ASSA Hogar, pp. 12 and 15; ASSA residential, p. 2
3. Endorsements or special conditions: these may add optional cover or change a term. Ley 12 recognizes the right to information about changes and endorsements, including at renewal. Ley 12, art. 243(6)-(7)
4. An individual certificate if you are on a group policy: request it from the bank, PH administration, or other policyholder, together with the conditions that apply to the certificate. Ley 12, art. 243(4)
5. Evidence of the period of cover: keep payment and renewal communications. If you see different versions, ask the insurer to identify in writing which one governed on the loss date. Ley 12, art. 243(7)

Check whether your contract insures fire caused by an earthquake, direct physical earthquake damage, or both, and whether that cover is standard or optional.

The SURA conditions examined here separate earthquake-caused fire from direct damage and place both in an optional section. The cover must be requested and shown in the Condiciones Particulares. The ASSA Hogar conditions reviewed use wording that includes damage caused by fire or directly by an earthquake. MAPFRE Hogar lists direct damage. This comparison teaches you where to look; it does not apply someone else's contract to your home. Sources: SURA, p. 5; ASSA, p. 15; MAPFRE, p. 1

Also read exclusions and overlapping events. For example, the SURA earthquake endorsement examined here excludes loss caused by a surge, flood, or rising water even when those events follow an earthquake. Other products and endorsements may differ. A leak first noticed after a tremor therefore calls for tracing the water and reviewing the relevant cover; the roof leak guide deals with the physical diagnosis. Source: SURA, p. 5, non-covered cases

Do not conclude that a crack is insured simply because it appeared the next day. A clause may require damage caused directly by an earthquake. The assessment must distinguish new damage, prior conditions, and other causes. Earlier photographs, maintenance records, and a technical evaluation may help document that distinction, but they do not replace the insurer's contractual decision. Sources: ASSA, p. 15; MAPFRE, p. 1; SSRP, claim documents

Even if the earthquake risk is included, cover for furniture does not prove that walls, the roof, or the structure are insured too.

Two sets of ASSA conditions on the company's website illustrate the point. One ASSA Hogar document has separate building and contents guarantees; another called “Multipóliza Residencial ASSA Hogar” excludes buildings from its contents section. Your own policy schedule and wording determine what was purchased. Use the sample PDFs to find the clause, not to assume you have that cover. Sources: ASSA Hogar, clauses 2-3; ASSA residential, section I

Ask the administration for the building's policy. Also check whether you have separate cover for your unit or its contents.

Article 25 of Ley 284 de 2022 includes insurance against fire and earthquakes extending to the whole building, as well as liability cover, among common expenses to which owners contribute. Article 54(6) requires the developer to deliver policies issued in favor of the PH to the transitional board, which then passes them to the elected board. You can therefore ask the administration for the documents, but the law does not certify that a particular crack must be indemnified. The policy actually purchased, its term, sum, insured property, and the cause of loss still need to be checked. According to Infojurídica, the 2025 amendment to Ley 284 changed other articles, not articles 25 or 54. Source: Ley 284, arts. 25 and 54(6), Gaceta pp. 14 and 26

Report the damage's location and discovery date to the administration in writing, with photographs taken safely. Ask for the claim number and who will coordinate inspection. If you also notify your own insurer, identify both policies without assuming the same loss can be recovered twice. Ley 12 provides for an individual certificate for insured people under a group policy, while the insurance wording must be reviewed for how it handles other insurance. Sources: Ley 12, art. 243(4); ASSA, general conditions

Ask the lender which policy is linked to the loan, obtain the certificate or contract, and check whether it insures the structure, the contents, and earthquakes.

Ley 12, arts. 150 and 151, gives customers of lending institutions the right to select an insurer and choose between a qualifying individual policy and the institution's group arrangement, according to the law's terms. Life insurance linked to a loan answers a separate question. “Mortgage” alone does not identify the risks insured by property cover. Source: Ley 12, arts. 150-151

As a limited example, the Caja de Seguro Social Reglamento de Préstamos Hipotecarios requires fire insurance for property securing its loans to include an earthquake extension, and it distinguishes damage to the structure from the borrower's movable belongings. This is a CSS rule, not a description of every mortgage issued by a bank in Panama. Request your own certificate and terms before deciding you are covered. Source: CSS, arts. 36, 39, and 41, PDF pp. 15-17

Read a deductible together with its calculation base, minimum, maximum, and insured category. A percentage on its own can lead to the wrong calculation.

In the ASSA Hogar wording examined, the earthquake deductible is 2% of the sum insured for each category of covered property, subject to the minimum, maximum, and Condiciones Particulares stated there. That figure belongs to that product and version; it is not a percentage imposed on all Panamanian policies. The SURA and MAPFRE wordings reviewed also state deductibles, but each contract must be checked separately. Sources: ASSA, p. 15; SURA, p. 5; MAPFRE, p. 2

A repair quote may fall below, equal, or exceed the deductible. If you do not yet know its scope, do not wait to calculate it before reporting the possible loss. The SSRP recommends early contact even without a complete valuation. Notification and the final coverage decision are separate stages. Source: SSRP, claims process

Contact the insurer or broker as soon as possible, get a claim number, and ask which deadline and documents your policy requires.

1. State observable facts: the home's location, where each item is damaged, the earthquake date if known, when you first saw the damage, and whether you have earlier photographs or repairs. Do not write “the earthquake caused everything” if it has not been evaluated. The sample policies refer to direct damage. ASSA, p. 15; SURA, p. 5
2. Keep the correspondence: name of the person taking the notice, assigned number, documents sent, and acknowledgment. The SSRP advises keeping documents and following up. SSRP, recommendations
3. Prepare available evidence: safe photographs of the damage, earlier pictures, invoices, estimates, and valuation or technical reports if you have them. The SSRP lists these as possible supporting items, not a fixed requirement in every case. SSRP, documents
4. Ask about inspection and urgent work: request guidance on protecting the property, limiting further damage, the assessor's visit, and what to record before damaged parts are removed. Do not delay essential safety measures to obtain a photograph. SINAPROC, recommendations; SSRP, process

There is no single notification deadline across policies. For example, one ASSA Hogar clause calls for reporting certain losses within seven days unless a longer period has been agreed. Your own contractual wording and applicable law govern your situation. If you lack the policy copy, request it while reporting the possible loss; a final engineering report is not required to tell the insurer what you have observed. Sources: ASSA, clause 17 A(2), p. 34; SSRP, process; Ley 12, art. 243(4)

A useful record separates the event, what you observed, what predates it, and what remains unknown.

These are model sentences for organizing information, not accounts of actual Gallardía jobs. The SSRP names photographs, video, estimates, invoices, and reports among possible supporting documents; cause and scope still need assessment. If a crack changes, the crack monitoring guide explains how to keep comparable records. Source: SSRP, documents

To organize home damage before sharing it with an insurer, the private earthquake damage file guide proposes photos, inventory, dates and recipient-specific versions. The contract and insurer specify the actual documents for a claim.

Ask for a written answer identifying the property, damage, policy clause, limit, and calculation used. Then distinguish a claim review from a regulatory complaint.

First, submit your disagreement in writing to the insurer's Sistema de Atención de Controversias. Include the claim number, loss date, earlier answers, and documents. The SSRP advises keeping a received copy and explains that the company's Ejecutivo de Controversias has up to 30 calendar days to answer in writing. This is the disagreement stage; it is not a reason to wait 30 days before reporting a loss. Sources: SSRP, steps 1-2; Ley 12, art. 249

If that answer is unsatisfactory or none arrives within the period, the SSRP states that there are up to 90 business days to file a complaint with it, counted from the insurer’s formal reply; if no reply arrives, from the business day after its 30-calendar-day response period expires, under Ley 12, art. 256. Contact the regulator for the required documents and to check its jurisdiction over the specific dispute. Its official page links the complaint form. Sources: SSRP, steps 2-5; Ley 12, arts. 255-256

Keep every communication. A dispute about whether a crack is new, whether the earthquake caused it directly, or what repair is required may need a technical assessment. That assessment does not rewrite the policy, but it can help establish the facts and the repair scope. The structural inspection guide explains what to request from the professional assessing the home.

The published policies illustrate how cover can be written. None replaces the reader's individual contract. The insurer and, if necessary, the appropriate dispute process determine coverage, cause, amount, and any indemnity. This guide neither diagnoses a structure nor interprets a particular policy.