Living in the Cayman Islands typically translates to beautiful year-round, beach-worthy weather, a widely referenced selling point when considering a move to the Caribbean. And while “island life” certainly lives up to the hype, there is one important component to bear in mind when purchasing a house or condominium in the tropics: buying suitable insurance coverage to protect your home and contents.
With hurricane season approaching — it begins on June 1 — now is the time to determine how much protection you need and which insurance provider is right for you.
Nigel Twohey, deputy managing director at Aon Risk Solutions in Camana Bay, says most home insurance policies in the Cayman Islands are broadly similar and will cover the basic perils like fire, earthquake and hurricane damage, but deductibles are different and this aspect is worth further investigation with your provider.
“Shopping around for the best price and coverage option is recommended,” he says. “We have many good broking firms that can do that for you and they will give you a range of quotes and options, but ultimately, it is your responsibility to make sure you have the correct insurance for your home.”
If you are purchasing property at a strata-run luxury condo like The Residences at Seafire, a comprehensive building insurance policy is taken care of through the property manager and the monthly strata fees include the cost of insurance, providing you with homeowners’ serenity.
Home insurance generally does not cover your personal belongings and possessions, so it’s important to also secure contents insurance. Twohey estimates only about half of the homes in the Cayman Islands have contents insurance. Furthermore, many homes that have contents insurance do not insure for the correct amount because they consider replacing only the costly items, like kitchen appliances, cabinetry, furnishings, electronics and personal valuables, without taking into account the cost of replacing cutlery, dishware, linens and other household items.
Making sure all the contents of your home are covered by insurance will cost more, but it’s well worth the peace of mind to enjoy your slice of Caribbean paradise.