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STRATEGIC GUIDE FOR POLICYHOLDERS

How to Get the Most Out of Your General Insurance

Personal

Your assets — your vehicle, your home, your belongings — represent years of effort and sacrifice. Well-managed general insurance is not just another expense: it is the barrier between you and a catastrophic loss. Learn to protect what you have built with intelligence.

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8
Strategic Modules
8
Case Studies
7
Insurance Types
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FUNDAMENTALS

Your assets deserve the same protection as your health

Most people insure their car because it is mandatory and forget everything else. A major loss event — a hurricane, a fire, a serious accident — can wipe out in hours what took decades to build.

Asset protection

Your vehicle, your home, your valuables: each one represents a significant investment. General insurance does not protect "things" — it protects the effort it took you to acquire them and your ability to replace them without going into debt.

Beyond the minimum

The mandatory auto insurance covers the bare minimum. But an accident with injuries, a category 4 hurricane, or a structural fire generates costs that far exceed basic coverage. The minimum is not enough when the damage is at its maximum.

Understand to decide

Deductible, coinsurance, depreciation, sum insured, exclusions: these terms define how much you collect when something happens. Not understanding them can cost you thousands of pesos at the moment you need your insurance most.

Your broker as your shield

When an adjuster arrives to evaluate your damage, you need someone on your side. Your insurance broker negotiates, documents, and defends your claim — that service is already included in your premium. Use it.

Quantum
Quantum
Your insurance broker

Your general insurance policy is a legal contract of more than 40 pages. Our job as brokers is to make sure you understand exactly what you are buying, what is covered, and what is NOT covered — before a loss event occurs. Call us with questions, not with surprises.

What general insurance protects

  • Your vehicle: collision, theft, natural disaster damage
  • Your home: structure, contents, liability
  • Your liability: lawsuits, third-party damages, legal costs
  • Your belongings: jewelry, art, electronic equipment
  • Your peace of mind: knowing that a loss event will not ruin you financially

What you will learn in this guide

  • Key concepts that determine how much you get paid on a claim
  • How to choose auto, home, and liability coverage
  • The step-by-step claims process to maximize your payout
  • Common mistakes that cause claim denials
  • Renewal strategies to optimize price and coverage
THE MODULES

8 Modules to Master Your General Insurance

Each module addresses an essential aspect of personal general insurance in the Dominican Republic, with real-world examples and strategies you can apply immediately.

01

Understanding General Insurance

What they are, how they work, what to expect. The difference between life, health, and property insurance. How insurers calculate your risk and your premium in the Dominican Republic.

02

Key Policy Concepts

Sum insured, deductible, coinsurance, depreciation, exclusions, sublimits. The terms that define how much you get paid — or how much you get denied — when you file a claim.

03

Auto Insurance

Coverage types (third-party, comprehensive, total loss), deductibles by event type, post-accident procedure with DIGESETT, and how to document correctly.

04

Home and Property Insurance

Structure vs. contents, proper valuation, hurricane and earthquake coverage, flood, theft, and how to avoid underinsurance that can cost you thousands.

05

Personal Liability

What it covers, where it is included, how much a personal injury lawsuit can cost. The insurance most people ignore until they receive a lawyer's letter.

06

Other Personal Insurance

Personal accident, travel insurance, watercraft, valuables, electronic equipment. Specialized coverage to protect what your standard policy does not cover.

07

The Claims Process

Step by step from the loss event to payment. How to document, what to tell the adjuster, legal deadlines, and what to do when your claim is denied.

08

Renewal and Your Broker

The annual renewal as a strategic opportunity. Updating sums insured, adjusting deductibles, evaluating new coverage, and optimizing your relationship with your broker.

Module 01

Understanding General Insurance

General insurance — also called property or casualty insurance — protects your physical assets and your liability to third parties. Unlike health or life insurance, these policies cover tangible objects: your automobile, your home, your belongings. In the Dominican Republic, the general insurance market is regulated by the Superintendencia de Seguros and each policy must meet minimum requirements established by law.

The fundamental principle is the principle of indemnity: insurance restores you to the financial state you were in before the loss, no more and no less. It is not a mechanism for making money — it is a mechanism for not losing it. This means the insurer will pay the actual value of the damage suffered, applying depreciation, deductibles, and policy limits.

Insurers calculate your premium considering multiple factors: the value of what is insured, the probability of a loss (in the DR, hurricane exposure is significant), your claims history, geographic location, and the deductible levels you choose. Understanding this equation allows you to make intelligent decisions about your coverage.

Ricardo Feris
Ricardo Feris
Founding Partner & CEO

In more than 30 years in this market, I have seen one constant: people who understand how their insurance works before they need it receive significantly higher payouts when they file a claim. It is not luck — it is preparation. I recommend that you read your policy like you would read an investment contract, because that is exactly what it is.

Module 02

Key Policy Concepts

Sum Insured

The maximum amount the insurer will pay for a loss. If your home is worth RD$15,000,000 but you insured it for RD$10,000,000, in the event of a total loss you will only receive RD$10,000,000. Even worse: if you are underinsured, the insurer can apply the proportional rule and proportionally reduce any partial claim.

Deductible

The amount you pay out of pocket before the insurer begins to pay. For auto it can be a percentage of the vehicle's value (typically 2-5%); for home it can vary by event type. Hurricane and earthquake usually have higher deductibles (5-10% of the sum insured). A higher deductible reduces your premium but increases your exposure.

Coinsurance

The percentage of the damage you share with the insurer after the deductible. If your coinsurance is 80/20, the insurer pays 80% and you pay the remaining 20%. Not all policies have coinsurance — check yours.

Depreciation

The reduction in value of an asset due to use and age. A 5-year-old vehicle is not worth the same as a new one. The insurer applies depreciation tables that can significantly reduce the payout. Some premium policies offer replacement value (no depreciation) for an additional premium — worth every peso.

Exclusions

What your policy does NOT cover. Typical exclusions: normal wear and tear, intentional acts, war, contamination. For auto: driving under the influence of alcohol, using the vehicle for public transportation without declaring it. For home: damage due to lack of maintenance. Reading the exclusions is more important than reading the coverages.

Sublimits

Maximum limits for specific categories within your policy. Your home may be insured for RD$20,000,000, but the sublimit for jewelry may be only RD$500,000 and for electronic equipment RD$300,000. If your belongings exceed the sublimit, you need an additional endorsement.

Robert Lithgow
Robert Lithgow
Founding Partner

Let me give you a direct piece of advice: if you do not know what the hurricane deductible on your policy is, find out today. Not tomorrow, today. I have seen clients discover they have a 10% deductible on the sum insured when the hurricane has already passed. On a home worth RD$20 million, that is RD$2 million out of your pocket before the insurer pays a single peso. The most expensive surprise in insurance is the one that arrives after the loss.

Module 03

Auto Insurance

Auto insurance is the most common general insurance product in the Dominican Republic, and also the most misunderstood. There are three main coverage levels:

Basic

Third-Party Liability

Covers damage you cause to third parties: other vehicles, third-party property, personal injuries. It is the legal minimum in the DR. It does not cover your own vehicle. If you crash and the fault is yours, your car goes unrepaired.

Intermediate

Limited Coverage

Includes third-party liability plus protection against theft, fire, and natural disasters. Does not cover collision. If your vehicle has high value but you do not want to pay for comprehensive premium, this option offers a balance.

Comprehensive

All Risk

Full coverage: collision, rollover, total and partial theft, fire, natural disasters, third-party liability, occupant injuries. If your vehicle is financed, the bank typically requires this coverage. It is the most expensive but the most complete.

What to do after an accident in the DR

  1. Do not move the vehicles until DIGESETT (Direccion General de Seguridad de Transito y Transporte Terrestre) arrives or the corresponding report is made.
  2. Photograph everything: the vehicles, their position on the road, the license plates, the damage, the marks on the pavement. Take a 360-degree video of the area.
  3. Do not admit fault at the scene. Be courteous but do not say "it was my fault" — that is the job of the expert assessment and the adjuster.
  4. Call your broker immediately. Before calling the insurer, call your broker. They will guide you on what to say and what not to say.
  5. Report the accident to the insurer within the first 72 hours (check your policy for the exact deadline).
  6. Obtain the police report from DIGESETT. This document is fundamental for your claim.
  7. Do not repair the vehicle until the adjuster inspects it, unless it is an emergency repair for safety.
Quantum
Quantum
Your insurance broker

A tip we give to all our clients: save a note on your phone with your auto policy number, your broker's phone number, and the roadside assistance number for your insurer. In an accident, nerves make you forget even your own number. That note will save you valuable minutes.

Module 04

Home and Property Insurance

In the Dominican Republic, fewer than 15% of homes are insured. This is alarming considering that the country is in the direct path of Atlantic hurricanes and in an active seismic zone. Home insurance has two fundamental components:

Structure (the building)

Covers the physical structure: walls, roof, floors, electrical and plumbing installations, doors, windows. It is valued at the reconstruction cost, not at the market value of the property (which includes the land). Common mistake: insuring at the purchase price of the apartment, which includes land — this creates underinsurance on the structure.

Contents (your belongings)

Covers furniture, appliances, clothing, electronics, art, jewelry. It is recommended to create a photographic inventory of all your belongings with receipts when possible. If you do not have an inventory and a loss occurs, proving what you had becomes a painful and slow process.

Specific risks in the Dominican Republic

  • Hurricane: Coverage against winds, storm surge, wind-driven rain. Typically has its own deductible (higher than the standard deductible). Season: June to November.
  • Earthquake: The DR sits on the Caribbean tectonic plate. Earthquake coverage is usually a separate endorsement with its own deductible (5-10% of the sum insured). Do not assume it is included — verify.
  • Flood: Frequently excluded or limited in standard policies, especially if the property is in a risk zone. Ravines, nearby rivers, or low-lying terrain may require additional coverage.
  • Theft: Generally covered, but with minimum security requirements (locks, bars). Check if your policy requires signs of forced entry.
Ricardo Feris
Ricardo Feris
Founding Partner & CEO

One of the most difficult conversations I have with clients is when they discover, after a hurricane, that they were underinsured. They had their home insured for RD$8 million when the actual reconstruction cost was RD$14 million. The insurer applies the proportional rule and pays them only 57% of the damage. The proper valuation of your property is the most important step in the entire process — and it is where you need us most as your broker.

Module 05

Personal Liability

Personal liability insurance protects you when you (or someone under your responsibility) cause damage to another person or their property. It is perhaps the most underestimated insurance in the Dominican Republic — until someone receives a lawsuit.

Scenarios where you need it

  • Your dog bites a neighbor or visitor on your property
  • A visitor slips and falls in your home, fracturing their hip
  • Your child breaks a neighbor's window playing baseball
  • A water leak from your apartment damages the apartment below
  • A tree on your property falls on a neighbor's vehicle
  • You cause a bicycle accident that injures a pedestrian

The costs of a liability lawsuit can be devastating. We are not talking only about the compensation to the injured party — legal fees, expert assessments, and the time consumed by a judicial process can add up to millions of pesos. Your liability policy covers both the compensation and the legal defense costs.

Where it is included

Liability coverage may be included as a component of your home insurance (owner/tenant liability), your auto insurance (third-party liability), or it can be purchased as a standalone policy. Check with your broker if the liability limits included in your other policies are sufficient for your risk profile.

Robert Lithgow
Robert Lithgow
Founding Partner

If you own property, have a dog, have children, or simply interact with the world — you need liability coverage. It is one of the cheapest coverages relative to what it protects. A personal injury lawsuit can easily cost you RD$2-5 million between compensation and lawyers. The annual premium for adequate liability coverage can be less than RD$15,000. Do the math.

Module 06

Other Personal Insurance

Personal Accident

Pays a fixed benefit in the event of accidental death, permanent disability, or medical expenses due to an accident. It is a complement to your health insurance — it does not replace it. Especially useful if you practice high-risk sports or travel frequently.

Travel Insurance

Covers medical emergencies abroad, lost luggage, flight cancellations, and repatriation. Many countries require travel insurance for entry. Even if your health insurance has international coverage, travel insurance covers situations that your health policy does not (luggage, cancellations).

Watercraft

If you have a boat, yacht, or jet ski in the DR, you need specific coverage: hull damage, marine liability, theft, and wreck removal. Marinas frequently require active insurance. Hurricanes are the main risk — make sure your policy covers them.

Valuables

Jewelry, luxury watches, works of art, collections. The sublimits on your home policy probably do not cover the full value of these items. A valuables endorsement or an "all risk articles" policy covers them even outside your home — if you lose your watch at a restaurant or have a ring stolen while traveling.

Electronic Equipment

Laptops, professional cameras, drones, photography or production equipment. Home insurance has low sublimits for electronics and generally does not cover them outside the home. If you depend on your equipment for work, a portable electronic equipment policy gives you peace of mind.

Umbrella Policy

An umbrella policy extends the liability limits of all your other policies. If your liability limits on auto and home are RD$5 million each, an umbrella policy can add RD$20 million in additional coverage. For high-net-worth individuals, it is essential.

Ricardo Feris
Ricardo Feris
Founding Partner & CEO

A lesson I have learned accompanying clients for decades: the insurance people need most is the insurance they buy least. Nobody thinks about personal accident insurance until they have one. Nobody appraises their jewelry until it is stolen. Nobody buys travel insurance until they get sick abroad. My advice is simple: sit down with your broker once a year and review your entire life — your car, your home, your travels, your hobbies, your valuables — and make sure every significant risk has a response.

Module 07

The Claims Process

The moment of truth for any insurance is when you need to use it. The claims process can be smooth or frustrating depending on how you handle it. Here is the step-by-step process:

1

Immediate notification

Report the loss to your broker and the insurer as soon as possible. Most policies have a notification period (typically 3-5 business days). Failure to notify on time can be grounds for denial. Your broker should be your first call — before the insurer.

2

Damage documentation

Photos, videos, receipts, police reports, repair estimates. The more evidence you have, the stronger your case. Document BEFORE cleaning or repairing. If there is a risk of additional damage (e.g., broken roof with rain forecast), take mitigation measures but keep evidence of everything.

3

Adjuster visit

The insurer will send an adjuster (expert) to evaluate the damage. This professional works for the insurer — their job is to determine the cause and quantify the damage. Be cooperative but do not exaggerate or minimize. If you disagree with the evaluation, your broker can request a second assessment.

4

Evaluation and offer

The insurer reviews the documentation, the adjuster's report, and the policy conditions. They issue a payment offer that reflects the damage minus deductible, depreciation, and any coinsurance. If the offer seems unfair, do not sign immediately — consult with your broker.

5

Negotiation (if applicable)

Your broker can negotiate with the insurer if the offer does not adequately reflect the damage. This may include additional estimates, second assessments, or technical arguments about the valuation. This is one of the most valuable services your broker provides.

6

Payment and closure

Once the amount is agreed upon, the insurer processes the payment. Legal deadlines in the DR establish a maximum of 30 days after completing the documentation. If there are unjustified delays, the Superintendencia de Seguros is the regulatory body you can appeal to.

Quantum
Quantum
Your insurance broker

The most common mistake we see in claims: clients who clean up or repair the damage before documenting it. We understand the urgency to get back to normal, but 15 minutes taking photos and videos can mean the difference between a claim approved for the full amount and one that is paid partially due to lack of evidence. Document first, repair after.

Common reasons for claim denial

  • Late notification: Reporting the loss outside the deadline established in the policy.
  • Unreviewed exclusions: Claiming for something the policy expressly excludes (e.g., flood when you do not have a flood endorsement).
  • Lack of documentation: Not having photos, receipts, or reports to support the claim.
  • Lack of maintenance: If the damage was due to poor maintenance (e.g., a chronic leak you never repaired), the insurer can deny the claim.
  • False information on the application: If when purchasing the policy you did not disclose relevant information (e.g., pool without a fence, aggressive breed dog).
  • Unpaid premium: If your policy was in an expired grace period or cancelled for non-payment.
Ricardo Feris
Ricardo Feris
Founding Partner & CEO

In three decades handling claims, I can tell you that the quality of the documentation submitted has more impact on the outcome than almost any other factor. A well-documented claim with clear photos, precise chronology, and evidence of prior value is processed faster and paid better. Investing 30 minutes in professional documentation can mean hundreds of thousands of pesos difference in the payout.

Module 08

Renewal and Your Broker

Your policy renewal is not an automatic formality — it is a strategic annual opportunity to optimize your protection. Each year, your situation changes: you bought a new car, renovated the kitchen, acquired jewelry, changed the use of a property. Your insurance should reflect those changes.

Renewal checklist

  • Update sums insured: Has the reconstruction value of your home gone up? Did you buy new appliances? Has your vehicle's value changed?
  • Review deductibles: Does your financial situation allow a higher deductible (and lower premium)? Or would you rather pay more premium for less out-of-pocket risk?
  • Evaluate new risks: Did you adopt a dog? Install a pool? Did your teenage child start driving? Each change may require adjustments to your coverage.
  • Review exclusions: Would an additional endorsement benefit you? Replacement value instead of depreciated value? Earthquake coverage if you do not have it?
  • Compare with the market: Your broker can get quotes from other insurers to ensure you are getting the best price for the coverage you need.
  • Claims history: If you have had no claims, you can negotiate discounts for a clean record. If you had claims, be prepared for possible premium adjustments.

The value of your broker

A professional insurance broker is not simply the person who sells you the policy. They are your ongoing advisor who:

  • Analyzes your risk profile and recommends appropriate coverage
  • Gets quotes from multiple insurers to find the best price-to-coverage ratio
  • Explains your policy conditions in understandable language
  • Assists you throughout the entire claims process — from start to finish
  • Negotiates with the insurer when there are differences in damage evaluation
  • Reminds you of expirations and alerts you to market changes
Robert Lithgow
Robert Lithgow
Founding Partner

Let me tell you something few brokers will say openly: do not renew your policy without reviewing it. Every year, your broker should sit down with you (or have a detailed call) to go over what has changed in your life and what should change in your insurance. If your broker simply sends you the renewal invoice without that conversation, you deserve a broker who takes the effort to protect you properly. That 30-minute annual meeting can save you millions when a loss occurs.

CASE STUDIES

8 Real Situations, 8 Lessons

Cases based on real situations faced by policyholders in the Dominican Republic. Each one shows how preparation and knowledge make the difference.

🚗
The Accident on 27 de Febrero with Injuries
Auto Insurance — Third-Party Liability

Miguel, a 42-year-old professional, had an accident on Av. 27 de Febrero in Santo Domingo. His vehicle struck another vehicle that was merging without signaling. A passenger in the other vehicle suffered cervical injuries that required hospitalization. Material damages to both vehicles totaled RD$850,000, plus the injured party's medical expenses: RD$420,000 between hospitalization, tests, and rehabilitation. The injured party's family hired a lawyer and sued for an additional RD$2,500,000 for "moral damages."

Situation
An accident with injuries where liability was unclear. A multi-million peso lawsuit for moral damages. Miguel potentially faced RD$3.8 million in total costs if found liable.
Strategy Applied
1) Miguel called his broker from the scene. 2) He photographed everything: vehicle positions, damage, traffic lights. 3) He did not admit fault to DIGESETT. 4) His broker activated the liability coverage and coordinated with the insurer's legal department. 5) The insurer assumed the legal defense as part of the liability coverage.
Result
The insurer covered the material damages and the third party's medical expenses. The moral damages lawsuit was settled for RD$800,000 (negotiated by the insurer's lawyers). Miguel paid only his deductible of RD$35,000. Without insurance, he would have faced more than RD$2 million out of pocket.
Key Lesson
An accident with injuries can become a multi-million peso legal problem. Liability coverage includes legal defense — that service alone is worth more than the entire annual premium. Document the scene and NEVER admit fault.
🔒
The SUV Theft in the Zona Colonial
Auto Insurance — Total Theft

Carolina, a 38-year-old business owner, parked her 2023 Toyota 4Runner (valued at RD$4,200,000) in the Zona Colonial while having dinner. When she left the restaurant, the vehicle was gone. She had a GPS tracker and comprehensive insurance. The vehicle was never recovered. The insurer initially offered RD$3,400,000 citing 19% depreciation — the vehicle was barely 14 months old.

Situation
Total theft of a relatively new vehicle. An RD$800,000 gap between the expected value and the insurer's offer due to aggressive depreciation.
Strategy Applied
1) Carolina reported to the Policia Nacional within the first 2 hours. 2) She notified her broker immediately. 3) She had a copy of the original invoice and vehicle registration. 4) Her broker challenged the depreciation table using market prices of similar vehicles on Dominican portals. 5) Five listings of identical vehicles selling for over RD$3,900,000 were submitted.
Result
After negotiation, the insurer adjusted the payment to RD$3,850,000 — RD$450,000 more than the initial offer. Carolina was able to replace her vehicle with minimal additional outlay. The difference was achieved by her broker with real market data.
Key Lesson
The insurer's first offer is not always final. Your broker can negotiate using real market data. Always keep the original purchase invoice for your vehicle and consider replacement value endorsements for new vehicles.
🌀
The Hurricane that Ripped Off the Roof in Punta Cana
Home Insurance — Natural Disasters

The Rodriguez family had a villa in Punta Cana valued at US$450,000 (structure and contents). A category 3 hurricane ripped off part of the roof, destroyed windows, and wind-driven rain ruined floors, furniture, and electronic equipment. Estimated total damage: US$185,000. Their policy had a hurricane deductible of 5% of the sum insured (US$22,500) and they were correctly insured at reconstruction value.

Situation
Severe hurricane damage to a vacation property. High deductible for a hurricane event. Mix of structural and contents damage that complicated the evaluation.
Strategy Applied
1) Before the hurricane, the family photographed the property's condition (prior advice from their broker). 2) After the hurricane, they documented every instance of damage with photos and video. 3) They had an updated contents inventory with receipts. 4) Their broker coordinated a priority adjuster visit given the volume of post-hurricane claims. 5) They submitted estimates from three contractors for the repairs.
Result
Claim approved for US$178,000 (total damage minus US$22,500 deductible = net payment of US$155,500). Payment was processed in 45 days — fast considering the volume of post-hurricane claims. Prior documentation was key to a smooth process.
Key Lesson
Document your property BEFORE hurricane season. An inventory with photos and receipts dramatically accelerates the claim. Know your hurricane deductible — it is different from the standard deductible and is usually significantly higher.
🔥
The Kitchen Fire in the Penthouse
Home Insurance — Fire and Contents

In a penthouse in Naco, Santo Domingo, a short circuit in the kitchen range hood caused a fire that completely destroyed the kitchen, damaged the adjacent dining room from smoke and heat, and affected the apartment's electrical system. Maria, the owner, was abroad. Firefighters controlled the fire but water damage from the hoses worsened the situation. Total damage: RD$4,800,000 between structure, kitchen contents (imported appliances), and electrical repair.

Situation
Fire with extensive damage in the owner's absence. Combined damage: fire + water from extinguishing + smoke. Imported kitchen appliances with high replacement value.
Strategy Applied
1) The building concierge notified Maria and she called her broker from abroad. 2) The broker visited the property representing Maria. 3) Coordination with the condo management for documentation and adjuster access. 4) Maria had invoices for the imported appliances saved in the cloud. 5) A claim for temporary lodging expenses (hotel) covered by the policy was included.
Result
Claim approved for RD$4,200,000 (after deductible). Included reimbursement for 3 weeks of hotel (RD$180,000) while repairs were being made. Maria was able to manage everything from abroad thanks to her broker.
Key Lesson
Save invoices for valuable items in the cloud (not only on paper). Check if your policy includes temporary lodging expenses. And have a broker who can act on your behalf when you cannot be present.
🐕
The Dog that Bit the Delivery Person
Personal Liability

Andres had a German Shepherd at his home in Los Cacicazgos. A delivery person entered the yard (the gate was open) and the dog bit him on the arm, causing wounds that required reconstructive surgery and months of rehabilitation. The delivery person sued Andres for RD$3,200,000 between medical expenses, lost income (he could not work), and moral damages. Andres had a home insurance policy with liability coverage included.

Situation
Multi-million peso lawsuit for injuries caused by a pet. Significant legal and financial risk for the owner. Debate over whether the delivery person entered with implicit authorization (open gate).
Strategy Applied
1) Andres notified his broker immediately upon receiving the lawsuit. 2) The insurer activated the home liability coverage and assigned specialized lawyers. 3) It was verified that Andres had declared the pet when purchasing the policy. 4) The lawyers negotiated an out-of-court settlement. 5) The insurer covered the injured party's medical expenses, agreed-upon lost income, and all legal fees.
Result
Out-of-court settlement for RD$1,800,000 (less than the original lawsuit). The insurer paid the total including RD$350,000 in legal fees. Andres paid nothing out of pocket beyond the liability deductible (RD$25,000).
Key Lesson
If you have a pet, DECLARE it to the insurer when purchasing or renewing your policy. If you do not declare it and there is an incident, the insurer can deny coverage. Home liability can cover situations you never imagined — but only if you have active coverage and updated information.
💧
The Broken Pipe that Flooded Three Apartments
Home Insurance — Water Damage and Liability

In an apartment building in Evaristo Morales, a hot water pipe burst in apartment 8B while the owners were on vacation. The water ran for 3 days before being discovered, damaging not only 8B but also apartments 7B and 6B below. Total damages: RD$2,800,000 in the apartment itself and RD$1,900,000 in the two neighboring apartments. The neighbors sued the owner of 8B for the damage to their properties.

Situation
Own damage + liability for third-party damage. Loss discovered days after the event. Multiple affected parties. Total at stake: RD$4,700,000.
Strategy Applied
1) The building management contacted the broker for the owner of 8B. 2) Own damage coverage (home) was activated for 8B and liability coverage for the damage to 7B and 6B. 3) The adjuster evaluated all three apartments in a single visit. 4) It was determined that the pipe failed due to age, not due to lack of maintenance — a key point for coverage. 5) The broker coordinated payments to all three affected apartments.
Result
The insurer covered the own damages to 8B (RD$2,800,000 minus deductible) and paid the neighbors RD$1,900,000 under the liability coverage. The owner of 8B only paid their deductible. Without home insurance with liability, they would have faced nearly RD$5 million from their own assets.
Key Lesson
If you live in a building, home insurance with liability is even more important. Your damages can affect neighbors and you are responsible. Consider turning off the main water valve when you are away for long periods — simple prevention that avoids catastrophes.
💎
The Jewelry Theft the Insurance Almost Did Not Cover
Valuables — Sublimits

Laura had an inherited jewelry collection valued at RD$2,800,000, kept in a safe in her home in Arroyo Hondo. Thieves broke in while the family was traveling, forced the safe, and took the jewelry along with US$5,000 in cash and two laptops. Laura filed a claim with her home insurance, but discovered her policy had a sublimit of RD$500,000 for jewelry and RD$200,000 for cash. Her RD$2.8 million collection was protected by only RD$500,000.

Situation
Home policy sublimits drastically lower than the actual value of the items. RD$2.3 million in uncovered losses. Lack of knowledge of the terms of her own policy.
Strategy Applied
1) The broker reviewed the policy and confirmed the sublimits. 2) The claim was processed for the maximum available under each category. 3) For the renewal, the broker recommended a valuables endorsement with individual appraisal of each piece. 4) A certified safe and alarm system requirement was implemented for the new coverage.
Result
Laura received RD$500,000 for jewelry + RD$200,000 for cash + RD$300,000 for electronics = RD$1,000,000 total. She lost RD$2,100,000 that was not covered. At renewal, she purchased a jewelry endorsement with full coverage — the additional premium was only RD$45,000 per year.
Key Lesson
REVIEW the sublimits of your home policy. If you have jewelry, art, collections, or cash above those sublimits, you need a specific endorsement. The additional cost is minimal compared to the potential loss. Get professional appraisals and save the photos in the cloud.
📋
The Automatic Renewal that Cost RD$3 Million
Renewal — Underinsurance and the Proportional Rule

Don Pedro had his home in Santiago insured for 12 years. He never updated the sum insured. He originally purchased it at RD$6,000,000 when he built it. In 12 years, with inflation and rising construction costs, the actual reconstruction value was RD$14,000,000. An electrical fire caused RD$5,000,000 in damage to a section of the house. Pedro expected the insurer to cover the RD$5 million (minus deductible), but the insurer applied the proportional rule.

Situation
Severe underinsurance: home insured for RD$6M with an actual value of RD$14M (43% of actual value). The proportional rule reduces the payout proportionally to the level of underinsurance. Instead of paying RD$5M, the insurer calculated: (6M/14M) x 5M = RD$2,142,857.
Strategy Applied
1) The broker filed an appeal arguing that the client had not been informed about the need to update the sum. 2) A higher payment was negotiated using conservative reconstruction value estimates. 3) For the renewal, a full professional property valuation was conducted.
Result
After negotiation, the insurer paid RD$2,800,000 — better than the strict proportional calculation, but RD$2,200,000 less than what he would have received with the correct sum insured. Don Pedro had to cover the difference out of pocket. The additional premium for insuring at the correct value would have been only RD$65,000 per year.
Key Lesson
NEVER renew automatically without updating the sums insured. Inflation, renovations, and rising construction costs cause your property's value to increase every year. Paying RD$65,000 more in premium would have prevented a loss of RD$2.2 million. The proportional rule is the silent enemy of the underinsured policyholder.
FREQUENTLY ASKED QUESTIONS

Everything you need to know

Answers to the most common questions about personal general insurance in the Dominican Republic.

What is the difference between "comprehensive" and "third-party" auto insurance?

Third-party (liability) insurance covers only the damage you cause to other people or their property — it does not cover your own vehicle. It is the legal minimum in the DR. Comprehensive insurance covers all of the above plus damage to your own vehicle from collision, theft, fire, natural disasters, and vandalism. If your vehicle has significant value or is financed, comprehensive is the recommended option.

What is the "proportional rule" and why should I be concerned?

The proportional rule applies when you are underinsured — that is, when the sum insured on your policy is less than the actual value of your property. If your home is worth RD$20 million but you insured it for RD$10 million (50%), and you suffer RD$4 million in damage, the insurer will only pay you RD$2 million (50% of the damage). The logic is that you were paying premium for only half of the risk. The solution is simple: always insure at the actual reconstruction value and update every year.

Do I need home insurance if I live in a condominium?

Yes, absolutely. The condo's policy (if it exists) generally covers only common areas and the building's structure, not the interior of your apartment. You need a home policy that covers: your interior finishes (floors, kitchen, remodeled bathrooms), your contents (furniture, appliances, electronics), and your liability (if a leak from your apartment damages the neighbor below). It is one of the most common mistakes: assuming that "the building's insurance covers me."

How long do I have to report a loss to the insurer?

Most policies in the DR establish a deadline of 3 to 5 business days to notify the insurer. However, our recommendation is to notify the same day if possible. The sooner you notify, the sooner the adjuster is assigned, and the fresher the evidence. Late notification is one of the most common causes of complications in claims. Call your broker first — they will help you make the notification correctly.

What do I do if the insurer offers me an amount I consider unfair?

Do not sign and do not accept immediately. Contact your broker to review the offer. Your broker can: request a detailed breakdown of how the amount was calculated, submit alternative repair estimates, request a second assessment, and negotiate directly with the insurer. If after negotiating you cannot reach a fair agreement, you have the right to appeal to the Superintendencia de Seguros as the regulatory body, or ultimately, to pursue legal action.

Does home insurance cover earthquake damage?

Not automatically. Earthquake coverage in the Dominican Republic is generally a separate endorsement that is added to the home policy at an additional cost. It has its own deductible, which is usually higher (5-10% of the sum insured). Given that the DR is in an active seismic zone, we strongly recommend including this endorsement. The Pedernales earthquake of 2010 and the constant seismic activity in the region are reminders that this risk is real.

Can I have a higher deductible to pay a lower premium?

Yes, and it is a legitimate strategy. A higher deductible reduces your premium because you are assuming more risk. But you must evaluate whether you can comfortably pay that deductible out of pocket if a loss occurs. For example: if you increase your auto deductible from 2% to 5% of the vehicle's value, you will save on premium but pay more in the event of a loss. The general rule: only raise the deductible to the amount you can pay without financial difficulty. Your broker can model different deductible vs. premium scenarios to find your optimal point.

What documents do I need to file an effective claim?

The documentation varies depending on the type of loss, but in general you need:

  • Photos and videos of the damage (before cleaning or repairing)
  • Police report (in case of theft or traffic accident)
  • DIGESETT report (for vehicle accidents)
  • Original invoices for damaged or stolen items
  • Repair estimates (minimum two, ideally three)
  • Copy of your active policy
  • Claim form from the insurer, properly completed
  • Detailed inventory of affected items with estimated values

Tip: maintain an updated photographic inventory of your belongings and save important invoices in the cloud. This greatly facilitates the claims process.

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