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There are 2 kinds of liability Americans and Canadians are concern about.

1. Liability related to car insurance. In this country liability insurance for cars, whether you go with third party liability of full coverage, they work very much like in the your countries. It all depends on the kind or limit of the coverage you chose when you talk to the insurance company of your choice. When you pay the yearly tags (marchamo) you pay a basic insurance required by law. The coverage is very minimun because it only covers third party “medical expenses” up to CRC¢5.000.000,oo colones which is close to USD$10.000,oo it does not cover any physical damages to either car.

2. Home insurance and liabilities. all though most foreigners are concern about this, our personal experience is that maybe 95% of costaricans never get home insurance. Foreigners because of their culture tend to go that route but due to the way we build in this country there is no worries about fires or floods which are for the most part the two natural elements that cause damages in the northern countries. If you’re idea is to buy property as an investment to rent through say VRBO and you worry about any of your clients well being, then you can think about getting insurance to cover injuries and possible lawsuits…