Following the tragic April 13, 2024 fires on Isla Colon, the topic of insurance coverage is on the mind of many property owners around the archipelago. Today we sit down with Ithiel Tribaldos of Afta Insurance Solutions to talk about fire insurance and explore other Bocas del Toro insurance related issues.
The Bocas Breeze: First off, let’s address a popular myth. People say “it is impossible to insure a wooden building in Bocas.” Fact or fiction?
Afta Insurance Solutions: Fiction! For 20 years, we have been insuring commercial and residential properties in Bocas. However, following the fire in April this year, it became evident that the Bocas Fire Department lacks the resources to effectively handle fire risks. As a result, insurance companies have stopped issuing new insurance policies until the fire department’s resources are improved to better prevent fires. Fire insurance policies in Panama nationwide pay a 2% tax, which goes to the Firefighters’ Trust for the purchase of materials, equipment, fire trucks, ambulances, etc. Currently, we are working with the Panamanian Association of Insurance Companies (APADEA) and the Firefighters’ Trust to acquire the equipment that Bocas needs.
TBB: Are there any additional types of coverage, beyond basic fire insurance, that residents and business owners in Bocas del Toro should consider, given the unique characteristics of the area?
AIS: Properties can apply for two types of insurance: Structure Insurance and Contents Insurance. To explain it simply, Structure Insurance covers the “shell” of the building and protects against catastrophic risks like fire, earthquake, windstorm, and flooding—this is the insurance that banks require for mortgages. Contents Insurance covers the equipment and furnishings inside the “shell.” Usually, furniture and equipment are covered under an umbrella policy against common risks, including theft and civil liability. However, in Bocas, we are often only allowed to insure contents under catastrophic coverage: fire, earthquake, windstorm, and flooding.
TBB: How does Afta Insurance Solutions tailor its insurance policies to meet the specific needs of residents and businesses in Bocas del Toro?
AIS: Insurance companies assess risk. Therefore, each application is evaluated individually based on location, type of construction, neighboring properties, whether it’s commercial or residential, etc. Depending on the risk, we sometimes need to adjust certain coverages or deductibles on the policies to ensure they can be insured.
TBB: Let’s say your property is insured and another property causes a fire that results in damage to yours. Does insurance cover the damage to your property? What happens if property causes damage to others?
AIS: If my property is insured and another property causes a fire that damages mine, my insurance covers me even if the fire didn’t start on my property. If my property causes damage to others and I have liability coverage, it covers damages to third parties up to the insured limit.
TBB: In the event of a fire or other property damage, what steps should the client take to ensure their insurance claims are processed smoothly?
AIS: 1- Immediately call your insurance agent to report the incident and open a claim. 2- When a claim is made, the insurance company will send an adjuster to assess the damages. The adjuster will send a list of required documents. 3- Once the adjuster receives the documents, they will issue an adjustment. From that moment, the insurance company has 30 days to make the payment.
TBB: What resources or educational materials does Afta offer to help residents and business owners in Bocas del Toro better understand their insurance options and coverage needs?
AIS: That’s a great initiative. In fact, we have a virtual program through our Instagram @aftaseguros called “Explicame mi póliza” (Explain My Policy), where clients can schedule a virtual appointment to ask questions about their coverage.
If you have questions or comments about this article, reach out to Contact Mr. Tribaldos by email itribaldos@afta.com.pa.
AFTA Insurance Services is the result of the strategic merger of five leading firms in the insurance brokerage market. With a combined track record of over 30 years in the industry, AFTA has established itself as a company dedicated to analyzing, identifying, and transferring risks, offering customized solutions for each of their clients.
Visit AFTA on the web: www.afta.com.pa
Video interview with The Bocas Breeze editor Nicholas Corea and Afta’s director, Ithiel Tribaldos.
