While the government does not offer insurance for investment properties, it is quite usual for properties to be insured against hurricanes in the Caribbean. Depending on the project you invest in, the developer may be responsible for the insurance funds, which may be collected through annual owner association fees. Or, property owners may be individually responsible. If you are buying a hotel room, the insurance may come under the developer’s responsibilities. If you are buying a detached villa, it is almost certain you will be responsible for organizing and paying the hurricane insurance costs directly each year. My best advice would be to question the developers on this point in detail so that you have a clear understanding before purchasing.
What investment protection against natural disasters do I have if investing in the Dominica citizenship program?
I am interested in obtaining a second citizenship from Dominica by investing in real estate. My biggest hesitation, however, is that the country is prone to hurricanes and I worry about my investment property being destroyed. Does the government offer any type of protection or insurance to investors with regards to natural disasters?
Dominica is not prone to hurricanes. There is an annual hurricane season and if a storm were to develop in the Atlantic, it could strike any of the countries in the Lesser Antilles, be it Grenada, St. Vincent, St. Lucia, Barbados, Martinique, Guadeloupe or Antigua. It just happens that Dominica got hit by Maria. Hurricane Maria also hit Puerto Rico, St. Croix, St. Thomas. Another hurricane hit Nevis, St. Martin and Tortola. You would classify those countries as being hurricane prone as well. All real estate project approved under the citizenship-by-investment program is properly insured. This is a fundamental requirement that all perils and fire coverage are maintained at all times. Given that, in the worst-case scenario that the country is hit by a hurricane and part of the project got destroyed, it will surely be repaired from the damage claim. Therefore, the fear of a hurricane striking Dominica should not be a deterrent to you getting your citizenship. A hurricane could strike any one of those countries in the Lesser Antilles and that would not cause one to lose his investment, as there are measures in place to mitigate against any property damage.