Section 1How to value your property correctly
The sum insured is the most important number on your property policy. Getting it wrong — specifically underinsuring — means you receive a reduced payout even for a partial loss.
⚠ In Guyana, most property insurance policies are written on an Average basis. This means that if your property is insured for 50% of its true reinstatement value, your insurer will only pay 50% of any claim — even a partial loss. Do not underinsure.
Reinstatement value vs market value
Reinstatement value is the cost to rebuild the property from scratch — including demolition, materials, labour, professional fees, and compliance with current building regulations. This is what you should insure for.
Market value is what someone would pay to buy the property. This is not what you insure for. Land value, location premium, and market sentiment are not relevant to insurance — only the cost to rebuild matters.
How to calculate reinstatement value
- Get a professional valuation from a qualified quantity surveyor or valuer registered in Guyana
- Include all structures main building, outbuildings, boundary walls, gates, paving, pools
- Include tenant improvements fit-out, partitions, built-in furniture, and landlord's fixtures
- Include professional fees architect, engineer, and surveyor costs for a rebuild are typically 10-15% of build cost
- Review annually construction costs in Guyana have risen significantly — review your sum insured at every renewal
ⓘ If you cannot obtain a formal valuation, use the current construction cost per square foot in your area multiplied by the floor area of the building. Your broker can advise on current benchmark costs.
Section 2Coverage types explained
Fire and Special Perils
Covers damage caused by fire, lightning, explosion, and a defined list of additional perils. Less comprehensive than All Risks but lower premium. Suitable for lower-risk properties.
All Risks
Covers all physical loss or damage except those specifically excluded. Broader than Fire and Special Perils. Recommended for residential property, commercial property, and any high-value assets. Exclusions vary by insurer — review them carefully.
What is typically covered
Standard All Risks property coverage
- Fire and smoke damage including damage from efforts to extinguish the fire
- Flood and storm damage rising water, storm, tempest — confirm exact flood coverage with your broker
- Burst pipes escape of water from pipes, tanks, and plumbing systems
- Lightning and electrical surge including power surge damage to wiring and equipment
- Vehicle impact accidental impact by any road vehicle
- Malicious damage vandalism and malicious acts by third parties
- Theft with forced entry break-in theft — note: theft without forced entry is often excluded
Contents and additional items to insure separately
- Contents furniture, appliances, clothing, personal effects — insure at replacement cost
- All risks extension portable items taken outside the home — laptops, jewellery, cameras
- Money cash kept on premises
- Business equipment if you work from home, confirm your home policy covers business equipment
⚠ Flooding is one of the most significant property risks in Guyana, particularly in Georgetown and coastal areas. Confirm explicitly with your broker that your policy covers flood damage and review the specific flood definition carefully.
Section 3Flood, fire and hurricane — critical considerations for Guyana
Guyana's geography makes certain perils particularly relevant. Ensure your policy specifically addresses these.
Flood
- Confirm coverage not all standard policies include flood as standard — it may be an extension
- Check the definition some policies distinguish between storm surge, rising water, and flash flooding
- Document high-water risk if your property has flooded before, declare this to your broker
- Elevate ground-floor contents practical risk management — particularly for Georgetown properties
- Drainage blocked drains can void flood claims — maintain drainage systems
Fire
- Working smoke detectors required by most policies and recommended for all properties
- Electrical wiring older wiring is a common fire cause — consider an inspection if your property is 20+ years old
- Cooking areas commercial-grade cooking equipment in residential settings may require declaration
- Security lighting reduces both theft risk and fire risk
Hurricane and windstorm
- Windstorm coverage confirm your policy covers wind damage from tropical weather events
- Roof condition insurers may inspect roofs for older properties — ensure your roof is in good condition
- Shutters and storm protection may reduce premium and is good practice for high-value properties
- Outbuildings confirm coverage extends to all outbuildings and external structures
ⓘ For properties in flood-prone areas, photograph the property condition annually — particularly ground level. This documentation is valuable if you ever need to make a flood claim.
Section 4Diaspora and remotely-owned property
If you live abroad and own property in Guyana, specific considerations apply. Your overseas home insurance has no territorial coverage in Guyana.
What to arrange
- Standalone Guyana property policy your foreign policy does not extend to Guyana — a local policy is essential
- Unoccupied property endorsement if the property is regularly unoccupied, declare this — some conditions may apply
- Local contact nominate a trusted local contact who can respond to incidents on your behalf
- Landlord coverage if you rent out the property, arrange landlord insurance including rental income loss
- Contents coverage if the property is furnished, contents coverage is recommended even when unoccupied
Remote management with Abdool & Abdool
- Entire process handled remotely — no visit to Georgetown required
- Policy documents delivered electronically
- Claims managed on your behalf from first notification to settlement
- Annual review handled remotely — we contact you
ⓘ Abdool & Abdool Inc. specialises in arranging and managing property insurance for diaspora Guyanese. Contact us from anywhere in the world — we handle everything. See our Diaspora Insurance page for full details.