Fire insurance premium swell as claims fall

As of August of this year, some 319,605 residential units were insured with a fire policy, But  although there was an increase in premiums, claims paid decreased by 23.6%, from $10,879,000 to August 2018, to $8,313,000 in the same period this year

The insurance industry reported premiums subscribed n the branch of fires and residential allied lines for $48.8 million as of August. In 2018 the figure amounted to $39.5 million, which means that this year there has been an upward variation of 23.5%, according to the latest report of the Superintendence of Insurance and Reinsurance of Panama (SSRP).

Mortgage requirement
Most of the current residential fire insurance policies are signed as an approval requirement for mortgage loans by banks and not as an individual initiative, according to sources from the SSRP insurance consumer protection department.

As of August, some 319.05 units were insured with a residential fire premium, 9.1% more than the number reported in the same month last year.

“This premium covers the destruction or material damage to the structure of the insured residence, caused directly by fire, lightning strike, explosion, vehicle impact (land or air), flooding, broken glass and mirrors and debris removal,” Industry representatives explain. 

In the case of content coverage (personal property, household and personal belongings inside the home) the client must pay an additional premium.

Some banks offer affordable prices for this type of coverage, says a La Prensa report. There is a monthly premium from $3.50 that insures the goods for a sum of $ 10,000; the option to pay $7 per month ensures a sum of $20.000 ; and of $10.50 per month that assures a sum for $30,000.