Home Insurance

When purchasing a home with a mortgage, a bank in the Cayman Islands will require you to have home insurance in place, ensuring the property is protected while the mortgage is being paid off.

What does home insurance cover?

Home insurance policies in Cayman typically protect against loss or damage caused by:

• Fire and smoke
• Storms and hurricanes
• Vandalism
• Theft
• Other insured hazards

Most home insurance plans also include contents insurance which covers personal belongings inside the home.

Waterfront properties generally attract higher insurance rates due to increased exposure to storms and flooding. Insurers will asses the value of the property, its proximity to the water, storm-protection features and elevation above sea level. Storm protection is treated as a separate peril with a different and larger deductible calculation.

Insurance for strata properties

If your property is part of a strata corporation, the building must be insured in the name of the strata. Each owner pays a portion of the insurance cost, typically based on square footage, which is often included in the monthly strata fees. Individual unit owners may seek additional protection for contents or personal liability.

Stamp duty on home insurance in the Cayman Islands

The Cayman Islands Government charges stamp duty on all insurance policies. This includes:

• A flat rate of CI$12
• An additional 2% of the premium for policies covering immovable property.

For example, if your annual home insurance premium is CI$5,000, the total stamp duty payable would be CI$112 (2% of CI$5,000 = CI$100, plus CI$12). This fee is due in full at policy inception and is paid to the government, not the insurance company.

Home Insurance Providers

The following home insurance providers are highly recommended.