Insurance, Living, Real Estate

Insuring Your Property in Mexico

Property ownership in Mexico carries all of the same responsibilities of property ownership elsewhere, and protecting your valuable physical assets against unforeseen events is an essential consideration as you formulate your annual budget . . .

Home Security and Insurance in Mexico

Property ownership in Mexico carries all of the same responsibilities of property ownership elsewhere, and protecting your valuable physical assets against unforeseen events is an essential consideration as you formulate your annual budget.

It’s worth noting that home insurance is distinct from Title Insurance, which covers you in the event that the title deed of the property you purchase turns out to be invalid causing your title to the property to be brought into question, and paying out compensation in the event that you lose title to the asset.

Property insurance policies sold in Mexico differ from policies you are used to seeing in your home country. The policy wording is unique, and the types of coverage offered by insurance companies is different here, so some things that you would expect to be included as standard, might not be if you purchase your insurance in Mexico directly from a Mexican insurer.

To help foreigners with property in Mexico to purchase insurance products familiar to them, specialist companies based in the U.S. have developed property ownership insurance policies which reflect the wording, terms and covers included on US and Canadian policies. The insurance policy is fully underwritten by a Mexican insurance company (by law, it has to be this way), but the U.S. companies work in partnership to create a product that is familiar to those purchasing insurance in the US and Canada, and which is legally sound under Mexican law.

The home insurance policies available in the market offer a wide range of options, and you can choose what to include and what to exclude as part of your coverage plan.  Depending on where your home is situated in Mexico, the risks (and coverage) you need to insure against will vary.  For example, homes near the coast should be insured against hurricane damage and earthquakes, whereas inland only cover for earthquakes will be needed.

Policies options and choices include all risks versus named perils, whether to cover assets like outbuildings surrounding the main property, and the option to insure your personal goods and chattels. Specialized coverage includes things like loss of rental income (in the event a property cannot be rented for a period) and also renter’s liability insurance—useful if you rent out the property commercially.

Other considerations to take into account include insuring any watercraft you own, as well as special arrangements for condos, where some liabilities are shared and some are owner-specific.

Regardless of what type of insurance you choose, the insurer underwriting the policy is far more important than the broker or agent selling you the product: in the event of a claim, the integrity of the underwriter will determine pay-outs, not the insurance broker.

Our guide to Property Insurance in Mexico explains what you need to know to arrange adequate and appropriate insurance for your needs, with key questions to ask, and things to consider as you prepare to insure your property here in Mexico.

The guide will also connect you to an online quotation service, that will ask you about the home coverage you want, and give you an instant quote; you can also arrange your policy online–the most convenient and affordable way to insure your property in Mexico.