It’s possible to lose a great deal money (and even a life’s savings) if you are not insured or discover following an unforeseen event or natural disaster that your policy was not adequate or that the insurer underwriting the policy was not financially sound.

This article highlights practical aspects related to property insurance in Mexico to help you understand home insurance policies and choose coverages which are suitable to your needs and that will be adequate in the event you need to make a claim.

Home insurance if you own or rent in Mexico

You can arrange property insurance whether you own or rent a home in Mexico.

If you own a home in Mexico, you can insure the physical structure of the property as well as arrange coverages for loss of personal property at the home, and third party liabilities.

If you are renting a home in Mexico, you cannot insure the physical structure but you can arrange coverages for loss of personal property situated at the home and third party liability in relation to people visiting or working in your rented home.

Uninsurable residential structures in Mexico

Note that certain physical structures, especially risky ones like wood-framed buildings and palapa (palm or straw) roofing structures are usually explicitly excluded from all policies; if you must insure these, be prepared to pay a high premium to have them included in your coverages (it’s usually uneconomic to do so).

“All Risks” —vs— “Named Perils” insurance coverages

Some policies will offer “All Risks” cover, a form of comprehensive coverage that will pay out in the event of most incidents involving your home.

The better policies offer the option to cover catastrophic incidents such as hurricanes, floods, wind, fire, volcanic eruptions, and earthquakes; surprisingly, some Mexican insurers are unable to underwrite some of these events, although specialist US insurers will.

To lower the insurance premium, you can elect to limit certain “Named Perils” assigned to your policy instead of taking All Risks coverage.  When you do this, certain events will be covered while others will not.

Less expensive policies are often the “named perils” type—even though on the surface they might appear to be comprehensive. A good broker will make a clear distinction between these two during its sales offer and demonstrate the cover and price differences between options.

Property insurance —vs— property title insurance

Note that property insurance and property title insurance are different.

Property insurance coverages are paid annually and can underwrite the physical property on the land, your personal possessions at the property, and may also cover third party liabilities related to the property.

Property title insurance is a one-time insurance payment you can buy when you purchase a property that mitigates risks related to unforeseen issues or liens associated with the property’s title.  It must be purchased before you close the property transaction.

Obtaining coverage for all your dwelling spaces

Your policy should cover the main structures of your home space and provide sufficient compensation to rebuild those structures if necessary.

Optionally, you may also cover carports, guesthouses, and other outbuildings including garages, games rooms, cabañas, equipment rooms, bungalows, stand-alone studios, etc.

Some homes in Mexico are composed of several structures (for example, several buildings situated around a central courtyard) and in these circumstances, the insurance rule is usually: everything that is directly connected is treated as one building. Anything that stands alone is considered an additional building.

Insuring your personal possessions situated at the property

A good insurance policy will cover personal goods owned by you, your guests, or domestic employees when they are working at your residence. Coverage for theft of personal property varies, depending on whether it is “scheduled” (specifically listed) or not.

Some policies include coverage for certain valuable property, such as cash, securities, jewelry, fine arts, sporting equipment and property used for business purposes—up to certain limits.

If you need higher limits for specific items of property that you own, this option is available by listing them on a special section of the application and making them a type of ‘named risk.’

Third party liability protection in relation to your home in Mexico

Good home insurance policies provide coverage for personal liabilities to third parties to protect you and your family against any lawsuits or demands presented against you.

For example, if a wall collapses and injures someone who was near it at the time; or the neighbor’s property is damaged due to a falling tree from your garden, a good insurance policy will cover your liabilities in these circumstances.

Policies can also cover injuries to people visiting or working in your home, for example if your housekeeper or gardener injure themselves on the job.

Loss of home use, or rental income

If you rely on your property for work, or to bring in a rental income, you may also choose to include a “loss of use” risk coverage in your policy.

This cover provides for additional living expenses if your house is damaged and cannot be lived in for a time while it’s repaired or rebuilt.

If you rent out your home and rely on this for income, you could take the additional option to cover rental income loss, whereby you are compensated for lost income if your home becomes damaged and unavailable for rental to others (you will need to provide evidence that a rental contract exists).

Rent liability coverage

Some home insurance policies exclude coverage when your home is rented (even occasionally or part time) or add a hefty supplement to the policy’s premium to include renter’s liability as part of the coverage.

If you rent out your home in Mexico (or intend to at some point) and want your coverages to be valid when others are renting the property, check with the provider you get a quote from to see if renter’s liability coverage is included in the premium, or how much more you need to pay in premium to include it.

Insuring your condominium unit in Mexico

Condominium associations in Mexico are supposed to keep a blanket commercial policy in place to cover the entire property.

Typically, this provides insurance coverage for the building as well as communal elements of the property such as pools, garages, the interior walls, fixtures, fittings, and outbuildings associated with the development, or fraccionamiento.

The wording of these commercial insurance policies tends to be very limiting in what they will cover within the terms of a blanket condominium insurance policy and it’s prudent for individual condo owners to arrange separate insurance to mitigate expenses of paying for certain types of damage.

Exclusion of third party liability

Many Mexican-issued insurance policies exclude third party liability and renter’s liability from the standard policy and charge a substantial premium to include these as optional extras. This places an obligation on condominium owners to cover elements not included by the commercial policy on a unit-by-unit basis.

Liability to adjacent properties in the building

Don’t be lured into a false sense of security by condominium blanket coverages: in a situation where an event that happens in your condominium affects an adjacent condominium —for example, a water leak in your shower room that damages your neighbor’s room below— you will be made liable for repairs to yours and your neighbors’ damages.  Having a unit-based insurance policy in place will protect you from the expenses of these sorts of events.

Check the documentation

The key documents to check on your Condo contracts are the ‘Byelaws’ and ‘Covenants’ associated with your condominium property: these are the documents that contain the small print regarding what is and what is not covered by the condominium building’s ‘blanket’ insurance program.

Insurance for beachfront and waterside property in Mexico

It’s possible to insure property near oceans, rivers, and lakes—although premiums may be higher to reflect the additional risks which may arise from storms and flooding that can be more common in these areas.

The online insurance application form will ask you for the Mexican postal code (zip code) of the property, and this is mapped to detailed topographical and statistical data which enables insurers to assess the hydro and meteorological risks that are related to the property and quote accordingly.

Some companies may refuse to insure properties very close to the sea or other bodies of water if historical statistical data show that it’s unviable, although policies may be available from different brokers that will quote for coverage in certain acute circumstances—with higher premiums to reflect the increased risk.

Insurance for homes situated on Mexico’s Yucatán peninsula

If you own —or intend to own— a home situated on Mexico’s Yucatán peninsula, you’ll discover that getting your property insured is more difficult than if it’s situated in other regions of Mexico.

The Yucatán region’s geology, coupled with unique hurricane risks, has made it either difficult or prohibitively expensive to insure homes in this area. However, our insurance associate MexPro offers home insurance coverages in the Yucatán region.

Watercraft insurance in Mexico

A few people live on their boat moored in Mexico, while some people who own homes here near a body of water might also own a boat, a jet ski, or a yacht—and these ought to be properly insured while they are situated in Mexican waters.

The premium you pay for insurance of your watercraft is based on two factors:

• the number of days the craft will be in Mexico, and
• the value of the watercraft.

Personal injury and third-party liability cover should also be taken out in case you become involved in an accident on the water. The better policies also offer legal assistance and ‘bond’ cover in addition to the injury and liability cover.

In legal terms, accidents involving watercraft where people are injured or killed are treated in similar fashion to serious car accidents in Mexico.

If you own watercraft and and spend extended periods of time here, or live here, an annual policy may be a better investment than a short term policy covering specific dates.

Check with the broker providing your quote to find out what options they have for year-round coverage of your watercraft in Mexico.

Learn more about property insurance in Mexico

Mexperience offers detailed insights about property in Mexico for buyers, owners, renters, and sellers.

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• Third party damage cover
• Latest articles about property insurance in Mexico
• Get a no-obligation online quote for home insurance in Mexico

Coverage against natural disasters

If you own residential property in Mexico it’s important to consider how you will insure what is probably your most-valuable asset against unforeseen circumstances and catastrophic events.

The principal natural-disaster risks in Mexico arise from hurricanes, severe floods, and earthquakes.  Strong winds can also pose a risk, for example, by felling trees that might fall and damage yours or a neighboring property.

Insurers have access to enormous amounts of topological, meteorological, and historical-event data which enables them to assess the risk in tandem with the Mexican postal code system: mapping properties to those data, and pricing insurance premiums accordingly.

‘All-risks’ versus ‘named perils’ coverage

Most residential property owners can get a quote based on an “all risks” or a “named perils” basis which can cover a plethora of eventualities, including structural damage, cover for third party incidents (e.g., a tree on your property falling in a wind storm, or someone injuring themselves while visiting your property) as well as home contents coverage in case of burglary or flood damage.

Situations which are difficult to insure against

While most property in Mexico can be insured, there are three special situations to be aware of in which property is difficult (or impossible) to insure:

Property that you possess but do not hold title to

As we describe in a related article, some properties in Mexico can only change hands under agrarian (common land) terms, which means that the purchaser gains possession of the land and can have quiet enjoyment of the property but never holds a legal title deed that is recognized in Mexican civil law courts.

If you own (or purchase) property on agrarian terms, be aware that it may be difficult (or impossible) to insure any structure you have or build on it, because in the event of a claim, the insurer may demand to see the legal title deed, not proof of possession. Thus, in the event of loss caused by a major event like a hurricane, earthquake, or severe flood you would need to cover the repair or rebuilding costs yourself.

Coverage for palapas and other natural coverings

Some Mexican homes feature elaborate open-air palapas —usually constructed using a combination of wood, bamboo and palm leaves— either as stand-alone features on the property itself, or as annexes to roof gardens or other terraces.  Palapas are notoriously susceptible to the elements as well as being a severe fire-risk.  For these two reasons, property insurance policies always exclude these structures from the coverages in the small print, because the historical data show that the risks of insuring them is too great.

Property situated in the Yucatán region

For geological reasons, it’s more difficult (but not impossible) to insure property situated in the Yucatán peninsula.  Many underwriters offering online coverage plans usually won’t quote for Yucatán postal codes; however, our associate MexPro insurance now offers insurance for residential properties situated on the Yucatán peninsula (comprising the states of Yucatán, Campeche, and Quintana Roo).

Note about insuring commercial property in Mexico

If you intend to insure a property that is used for commercial purposes, then you will need to find a local insurance broker that specializes in this field and get a detailed quotation for coverage.

It’s also important to note that if you use your residential home for any commercial activity (other than a home office) or rent part of your property while you are still living there (known as “simultaneous occupancy”), then this too will require a commercial policy, which is more complex and expensive than a policy designed to cover the risks of a residential dwelling house.

Learn more about caring for and insuring your home in Mexico

Mexperience publishes extensive information to help you plan and care for your home life in Mexico through guides, articles and free eBooks:

• Free guide: House maintenance and home security
• Latest articles about property insurance
• Articles about real estate in Mexico

Policy wording for Mexican property insurance

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 present if you purchase your insurance in Mexico directly from a Mexican insurer.

Familiar policies, fully underwritten in Mexico

To help foreign residents who own 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 premiums are paid in US dollars and any pay-outs are also paid in US dollars.

Policies to suit your situation and needs

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 (and perhaps flooding, if you home is situated near water) will be needed.

Home insurance policies cover a wide range of eventualities and the most common coverages include reimbursement of costs related to:

• Damage caused by hurricanes and earthquakes
• Damage caused by and wind storms and floods
• Injuries to housekeepers and other workers in your home
• Burglaries and vandalism
• Damages to third parties, e.g. falling trees
• Coverages for owner-specific liabilities, e.g. in condos

You can cover all risks or named perils

Policy 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.

• The better policies will include coverages for third party liability: this is  helpful in the event that someone who does not live at your home meets with an accident on your property, or where some damage is caused to a neighbor, e.g. by a falling tree.
• This article about third party liability in relation to your home shares more details.
• Other considerations to take into account when you’re assessing your insurance needs include purchasing cover for any watercraft you may own, as well as special arrangements for condos, where some liabilities are shared and some are owner-specific.

Regardless of the 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.

Learn more about caring for and insuring your home in Mexico

Mexperience publishes extensive information to help you plan and care for your home life in Mexico through guides, articles and free eBooks:

• Free eBook: House maintenance and home security
• Latest articles about property insurance
• Articles about real estate in Mexico

This article introduces you to property insurance choices and guides you through important considerations as you search for and choose a home insurance policy for your needs and lifestyle situation.

Principal coverages offered by insurance policies for your home in Mexico

Depending on your needs, circumstances, and budget, you can insure your property entirely or partially.

The insurance premium will depend on key variables related to the risks you want underwritten, including: the location and type of your property, its age and replacement cost, and what events you want coverage for.

You can insure your home in Mexico for:

• Structural damage caused by natural phenomena like wind, floods, earthquakes and hurricanes, as well as damage caused by acts of vandalism and burglary (owners only).
• Loss or damage of personal possessions in the event of flooding or theft (whether you own or rent).
• Third party liabilities related to owning or renting property, for examples if a tree falls on your neighbor’s house or your housekeeper is injured while working in your home (whether you own or rent).

Property insurance policies in Mexico

Property insurance policies in Mexico are different to policies sold in the U.S. and Canada. The policy wording is different, and the types of coverages offered are different, so some things that you might think are included as standard, might not be if you purchase your insurance in Mexico directly from a Mexican insurer.

To bridge this gap, specialist companies based in the U.S. have developed property ownership insurance coverages which reflect the wording, terms, and coverages typically included on US and Canadian policies.

The insurance itself is underwritten by Mexican insurance companies (by law, it must be this way), but the U.S. companies work in partnership with Mexican underwriters to create an insurance coverage that is familiar to those purchasing insurance in the US and Canada (or those who want a US-style policy), and which is legally valid under Mexican law.

Some homeowners in Mexico purchase property insurance from a Mexican insurer direct that charges premiums in Mexican pesos and pays out in Mexican pesos; others purchase from a specialist US-based company that offers US style insurance with premiums in US dollars and pay outs in US dollars.

Buying insurance for your home in Mexico

Should you buy your insurance from a local Mexican broker or a specialized US firm?  Here are some key points to consider about each route:

Buying from an insurance broker in Mexico

When you buy home insurance from a Mexican broker you will typically:

• obtain coverages sold with Mexican-style terms and characteristics, often different to those offered in the US and Canada and which may offer less coverages or have limitations you are not accustomed to;
• have policy wording presented in Spanish, so you will need to be able to read Spanish fluently or have someone translate and/or explain the policy terms to you;
• need to file insurance claims in Spanish and any discussions or disputes about claims will need to be argued in Spanish; you will need to get an interpreter to deal with claims if your Spanish is not that good;
• pay your insurance premiums in Mexican pesos and any claims will be paid out in Mexican pesos.

Buying insurance from a specialist US firm

When you buy home insurance from a specialist US firm you will typically:

• obtain coverages sold with US-style terms with the same kinds of characteristics you see on insurance policies offered in the US and Canada;
• have a policy sold and worded in English;
• be able to file claims and undertake discussions about claims in English;
• pay your premiums in US dollars with any claims paid out to you in US dollars.

Should you choose a Mexico or US based home insurance policy?

If your Spanish is good, you have a decent local insurance broker contact, and you’re satisfied with the coverages offered by a Mexican-style insurance policy, then a local insurance policy will suffice, although there’s no harm in obtaining a quote offered by US-based policies to compare coverages and rates.

We recommend that you consider the services of US-based specialists set-up specifically to service foreign-home ownership in Mexico if your Spanish is not fluent and if you don’t have much experience of buying insurance in Mexico.

It’s also important to consider that, in the event you need to claim, you will find yourself in a stressful situation, and having an insurer that has issued a policy in English, in terms you are familiar with, and covering events which you are used to seeing covered in an insurance policy will be worth any additional premium on the day you may need to make that telephone call to file a claim.

Further, US-led policies can include coverages (for example, third-party liability cover) as standard, whereas many Mexican policies do not cover these without them being specifically scheduled—and with significant additional premiums.

Learn more about property insurance in Mexico

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Domestic workers can include housekeepers, nurses or other home assistance;  gardeners, pool cleaning and maintenance workers; and may occasionally include other specialized workers like plumbers and electricians.

You can mitigate the cost of liability

This article describes certain risks that can emerge from having people working in your home and how a suitable insurance policy can mitigate the financial costs and related treatment expenses if someone working there suffers an injury, as well as defend you against civil liability costs in the event of a major adverse incident.

You can obtain home insurance coverage, including third party liability, whether you own or rent your home in Mexico.

Accidents can and do happen in the home

When you have a regular helper or helpers working in your home, you ought to consider what would happen if one of those workers or helpers has an accident and needs treatment, or becomes disabled, or dies.

Examples include:

• if your housekeeper slips and falls badly, and sustains a substantial injury;
• if your gardener injures himself using a power tool, or falls off a ladder;
• if the pool maintenance guy trips and falls into the pool, knocking his head during the fall.

Accidents happen and if someone working in your home (whether the property is owned or rented) suffers an injury or worse, you can become liable for:

• expenses related to their treatment;
• loss of income if they’re unable to work due to an injury in your home; and,
• in the event of their death, you might face a civil lawsuit.

Civil liability can cause financial hardship

Additional risks arise where someone working in your home inadvertently causes an accident and hurts someone else or damages someone else’s property; or where an injury suffered by someone working in your home prevents them from working for a time and they pursue you for loss of income.

Examples of this include:

• the gardener cuts down a tree branch that falls on an adjacent property and injures your neighbor;
• a plumber who comes to replace old pipework on your property causes the condo below yours to be flooded;
• the housekeeper watering plant pots that are placed on a wall accidentally causes the plant pot to fall out onto the street and it injures a passer-by;
• your housekeeper or other worker suffers a severe injury while working at your home that prevents them from working for an extended period—and pursues you for loss of earnings.

An adequate home insurance policy can defend you against these types of unforeseen accidents and mishaps and provides civil liability cover in the event of a serious incident.

Third-party liability insurance for your home

A satisfactory home insurance policy will cover the home’s structure (if you own the home), and your personal goods (whether you own or rent).  The best policies also offer third-party liability coverages or offer third-party insurance as a stand-alone coverage option.

Typical situations that third-party home liability covers

Third-party liability coverage protects you when someone working in your home suffers an accident or inadvertently causes an accident that creates an injury or loss to themselves, or someone else.

For example, if:

• A worker comes to your home, regularly or ad-hoc, to undertake some work for you and, while doing that work, they injure themselves, the insurance coverage will reimburse you for medical and other related expenses you incur for the treatment of that person’s injuries.
• Someone working in your home causes an accident that has an impact on a third party, the insurance will cover medical and other losses suffered by that third party. For example, if a worker is painting an outside wall and the paint pot falls off the ladder onto someone’s parked car, the insurance would cover you for the car owner’s expense in getting that damage repaired.
• A worker at your home suffers a serious accident or injury that prevents them from working for a time, and they pursue you for lost earnings, the insurance would provide coverage up to the insured amount.
• A person working in your home suffers a serious accident and becomes permanently disabled, or dies, the insurance would cover any civil lawsuits that may be brought against you.
• When someone you know is visiting your home and suffers an accident or loss unintentionally caused by you (the policy holder) —or by your immediate family member— or caused by someone working at your home, the insurance would cover expenses for treatment and damages to the visitor.

In the case of civil liability suits, the insurance will also cover your legal expenses in relation to those, usually up to 50% of the insured amount—check the policy for details about this.

Typical limitations and exclusions

Domestic third-party liability insurance policies carry limitations and exclusions that you ought to be aware of; check the policy wording for details.  Significant situations that are almost always excluded include:

• The policies exclude injury to the named policy holder and their immediate family; so, if you or your partner or children suffer an accident on the property or are injured by a person working at the home, medical expenses and liability for those events are not covered.
• Any loss or damages to goods and persons where the home is in process of construction, assembly, or dismantling are explicitly excluded—so these policies will not cover you when you are building or extending a home, or having major remodeling done. The insurance does cover workers when they are attending your home to make repairs and/or undertake maintenance
• When you are host to guests like friends or extended family members, any injuries, or damages they might sustain while on or near your property will not be covered under the policy unless the accident or damage was caused the named policy holder or their immediate family member, or by someone working at the home.
• The insurance will never cover any damages, injuries, or losses arising from any events or situations where criminal or unlawful activity is involved; or if willful negligence is apparent; or for suicides.

How a third-party insurance policy protects you

You can arrange a policy online and the insurance will provide immediate home coverage for you in Mexico on acceptance of your application.

In the event of a claim, the insurance will reimburse you for medical and other related expenses you incur to provide immediate necessary treatments to the person or persons who were injured while working in your home, and it will provide legal help and civil liability coverage as per the policy if the person who was working in your home subsequently pursues you for civil damages.

Arrange a policy online and get immediate coverage

Our home insurance associate, MexPro, offers comprehensive home insurance coverages including third-party liability that can be purchased by itself or as an integral part of a complete home insurance coverage plan.  MexPro is a long-established US-licensed insurance broker that only works with A-rated underwriters.

• You can purchase home insurance whether you own the home, or are renting the home
• If you are renting, you can only insure your personal goods and/or third-party liability
• You can purchase third-party liability by itself as stand-alone coverage
• Choose how much coverage you would like: US$300,000 is a recommended minimum, and you can insure for up to US$2 million
• There is no deductible for third party liability claims, unless the claim is to cover an injury for a person working in your home, in which case a deductible of MXN$600 pesos (about US$30) per claim applies.
• The policy premium is quoted for and paid in US dollars, and any payouts are made in US dollars, or the US dollar equivalent amount in Mexican pesos when you ask for the payment to be wired to a bank account in Mexico.

Learn more about caring for your home in Mexico

Mexperience publishes extensive information to help you plan and care for your home life in Mexico through guides, articles and free eBooks:

• Free eBook: House maintenance and home security
• Articles about property insurance
• Articles about real estate in Mexico

Comprehensive guide to real estate in Mexico for buyers, owners, sellers and renters—continually revised and updated.

Extensive and detailed guide to real estate in Mexico

Our comprehensive guides to real estate in Mexico introduce you to essential information about property in Mexico whether you are:

• Renting property in Mexico;
• Buying a home in Mexico;
• An owner who needs to insure and maintain the property;
• An owner who plans to rent a property in Mexico;
• Selling your home in Mexico; and
• Working with Real Estate Agents in Mexico.

Property rental in Mexico

We publish detailed guides about all aspects of property in Mexico, including renting residential property here.

Property purchase in Mexico

Connect to detailed and exhaustive guides about buying and owning property in Mexico.

Owning and maintaining a property in Mexico

Browse detailed information that helps existing property owners manage, maintain, and insure their property in Mexico.

Insurance for your home in Mexico

Helpful guides and insights to help you consider how to get the right level of coverage for your home and property in Mexico, including coverage against third party liability damages.

Selling your home in Mexico

When you come to sell your residential property in Mexico, our guides and articles give you practical insights to help you prepare, market and sell your property.

Working with realty agents in Mexico

Insights and tips for finding and working with a local realty agent in Mexico, whether you are renting, buying or selling a property.

Learn more about real estate in Mexico

We continually update our guides and articles about matters related to property and real estate in Mexico.  Connect to further resources for insights and connections:

• Latest insights about real estate in Mexico
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• Tips and insights about insurance for your Mexican home
• Latest insights about realty agents and agencies
• Connect to professionals who can help with property closings

Most of homeowners are aware that property insurance helps to protect the investment of what is often our most valuable asset.  If you have a mortgage, the bank usually insists that you carry property insurance as it protects them, too. Homeowner’s insurance can also protect from liability in those instances when a third party is hurt on the property.

Severe damage can make a home uninhabitable

When your Mexican home is seriously damaged by storms, flooding, fire, or a natural disaster, far more than your financial investment is at risk.

If your home becomes uninhabitable for a time, you’ll need to evacuate while repair works are undertaken, and you and your family may suddenly be seeking temporary housing at a hotel or other fixed-term rental.  Depending on the amount of time it may take to complete repairs to your home, the out-of-pocket expenses can quickly add-up.

“Loss of use” provisions in property insurance

However, if you have planned well and are protected by a “loss of use” provision in your property insurance policy, you will be able to move into rental accommodation while your claim is being adjusted and repairs are being made without incurring living expenses that are higher than your ordinary outgoings. This can help you to protect your savings, or stay out of debt, and return your life-situation to its normal rhythm as soon as practicable.

In addition to paying for temporary housing, you may also be covered for moving expenses and temporary storage of your home furnishings. Policies vary, and the total monetary amount and length of time you are covered for will be determined by the provisions of the coverage you arrange.

Depending on your policy, you may also qualify for help with restaurant bills (beyond what you and your family might spend ordinarily on food): after all, if you can’t cook in your own kitchen, you will still need to eat —typically in restaurants— until you can return home.  Your insurer might also provide some immediate help with replacement clothing if yours is damaged or not available.

Loss of rental income might be covered

If you rent your property out and your tenants are affected by the damage to your home, some policies offer a provision to pay you for lost rental income; and tenants might also qualify for property insurance benefits if they have had losses or were forced to move out. Check with the policy you purchase to see what the details are if you rent out your property part-time or full-time.

‘All-risks’ policies provide comprehensive coverage for your home

While the likelihood of your property becoming damaged to the point of being uninhabitable is slim, disasters do happen—and not always to ‘somebody else’.  An affordable all-risks homeowner’s property insurance policy is the best way to ensure that major damage to your home is going to be repaired, your life can continue as normally as possible in the meantime, and you won’t be financially crippled by the event.

Our insurance partner MexPro remarks that it’s best to think of property insurance premiums as part of the total cost of owning property—as it costs much less get adequately covered than it would be to try to recover from a major loss without insurance.

Learn more about caring for and insuring your home in Mexico

Mexperience publishes extensive information to help you plan and care for your home life in Mexico through guides, articles and free eBooks:

• Free eBook: House maintenance and home security
• Latest articles about property insurance
• Articles about real estate in Mexico

Insurance to cover the costs of burglary in Mexico

Property insurance policies cover theft of most items from your home —and sometimes for certain items stolen from your car or hotel room when you’re traveling— but the specific provisions in most policies typically stipulate an uncovered deductible amount.

Coverage for vandalism

A good insurance policy will also cover you if an act of vandalism is visited upon your property.  While vandalism can be a relatively minor irritation —graffiti spray-painted on an exterior wall, for example— it can be far more expensive to make good if the vandalism is severe and happens inside the property as part-and-parcel of a burglary.  Most burglars are looking for easily portable, high-value items like jewelry, technology, and cash, and it’s not unheard of for some burglars to cause extensive internal damage as they move through the house.

While a comprehensive insurance policy will cover vandalism, when the deductible is considered, in practice an event like a graffiti painted on an external wall will be less expensive to make good locally than filing an insurance claim.  The same is true with petty thefts: small losses aren’t covered unless the value of the loss is greater than the policy’s deductible.

Unattended properties are a prime target for burglars in Mexico

In Mexico, unattended homes are at the highest risk of burglary.  It’s unwise to leave your home vacant and unattended in Mexico for lengthy periods, and most foreign residents who plan to be away for a week or more will take some precautions.

Here are some key tips to consider when you plan to be away and leave your house unoccupied for an extended period:

Check the insurance policy

Be sure to check the detail of your home insurance policy as most coverages underwriting domestic dwellings will not pay-out if your property has been left vacant for 30 days or more.

Communal homes

If you’ve purchased your Mexican home in a condominium complex or in a gated community (known in Spanish as privadas or fraccionamientos), some of these have 24-hour security at the gate.

Let your gate staff (or other staff like the property manager or the cleaner) know that you’ll be away and ask one of the neighbors to pick-up your mail and call-in to the property to check on things; this is especially important during the rainy season after a major storm (or hurricane if you live along the coast) to check for any damage that may need attending to right away.

If you don’t have a neighbor or local friend who can help with this, a local realty agent might provide the service for a fee.

Detached homes

If your home is situated along a public street, and especially if it’s in a semi-rural or rural location off-the-beaten-track, we recommend you adopt a range of measures to mitigate the possibility of burglary. These include having interior and/or exterior lighting set-up on timers, and/or motion detectors outside that switch-on lights in key areas when people approach the property.  Some owners have alarm systems installed which are connected to a security company.

Your car and other vehicles

If your car is kept in public view and you’re going to leave it while you’re away, have a neighbor move it occasionally; doing this will also help to keep the car’s battery in good working order, especially if the vehicle is older and your absence is extended.

Home checkers/sitters

Ask a neighbor, family member, or friend —or pay a local agent— to pick-up mail and check the property while you’re away.  An excellent way to protect your property while you’re away for a lengthy period is to have someone you know house-sit for you.

For a trusted friend or family member, this arrangement might provide an opportunity for them to enjoy a rent-free leisure break here in Mexico, and it’s also useful if you have pets that need looking after: having them cared for at home is a better arrangement (and less expensive) than using kennels.

What’s covered by home insurance in Mexico?

The precise coverages on offer to protect your home are determined by where in Mexico the property is situated: not every insurance company will offer full coverage in every part of the country.

To find out what you can cover for your home, our associates, MexPro, provide a property insurance service online: use this to enter your property details and address and their system will give you a quote on property insurance, as available for your review.

Learn more about caring for and insuring your home in Mexico

Mexperience publishes extensive information to help you plan and care for your home spaces in Mexico.

• Guide to securing your home and dwelling spaces in Mexico
• Guide to home maintenance
• Latest articles about property insurance
• Articles about real estate in Mexico

Protect your personal items and defend against litigation

Although home insurance is not obligatory by law in Mexico (if your property is mortgaged, the lender may insist the property is covered), it’s prudent to factor-in a property insurance policy to your annual budget to protect your assets and, importantly, to defend against third party liabilities.

Third party liability in relation to home ownership doesn’t seem as obvious a risk as it is with driving a car, but in the event of an accident or mishap involving your property, your liabilities as home owner to third parties will become apparent.

Storm damage can leave you liable

Consider the trees in your garden. Trees falling in a wind storm can come down with tremendous force, and will easily cause material damage to your own property—and possibly to your neighbor’s. In acute cases they can cause bodily harm or fatalities.  Mexico experiences stormy days, even in the highlands away from the coasts, and some of those storms will cause trees to fall down.  Garden walls can also be subject to sudden and unexpected collapse, especially during an earthquake, or if they are old or have weakened foundations.

Condo unit ‘bloc’ coverages are limited

A common situation where homeowners unwittingly become exposed to liabilities is when they own a condominium, or live inside a gated community. They think the insurance policy —paid for through their Home Owner Association fees— that covers the building or the estate also covers them personally.  It usually doesn’t.  For example, when a water leak from the kitchen or shower room in your condo causes damage to units below yours, the repair bill becomes your responsibility.

Domestic workers and accidents

Another situation where homeowners can become liable is in relation to the domestic help they employ.  A lot of foreign residents in Mexico hire maids and gardeners.  If your maid falls down the stairs when she’s cleaning, or your gardener hurts himself while working in your garden, you become responsible to them in those situations.  Read this article to learn more about insuring domestic workers in your home in Mexico and how an adequate insurance policy can cover you.

Home insurance as an integral part of  your budget

Home insurance policies are often overlooked and sometimes ignored as an unnecessary expense by foreign homeowners here in Mexico, especially those with homes situated away from hurricane-prone areas. While hurricanes are among the most apparent risks in relation to property, powerful wind storms inland can also cause serious property damage, and give rise to third party liability in relation to events and people related to your home: if for no other reason, you should consider your insurance arrangements to mitigate those liabilities.

Learn more about caring for and insuring your home in Mexico

Mexperience publishes extensive information to help you plan and care for your home life in Mexico through guides, articles and free eBooks:

• Free eBook: House maintenance and home security
• Latest articles about property insurance
• Articles about real estate in Mexico

Many of the principal underwriters (the big companies which cover loses on insurance products) have had a moratorium in place since 2015 pending a review of the data and risks associated with insuring property in the Yucatán region.

Our home insurance associate, MexPro, offers homeowners in Mexico who have residential property situated on the Yucatán peninsula —that includes the states of Yucatán, Campeche and Quintana Roo— residential property insurance quotes for properties in those states.

This is welcome news to the thousands of people who have been trying to get insurance for their property investment in the region, as previously only specialized insurance brokers situated locally would quote for coverages, and then only under less-than-ideal terms.

Learn more about caring for and insuring your home in Mexico

Mexperience publishes extensive information to help you plan and care for your home life in Mexico through guides, articles and free eBooks:

• Latest articles about property insurance
• Articles about real estate in Mexico

It’s therefore sensible to take some time to review the composition of your habitat and living spaces to help mitigate the risk of damage and injury that may occur during an earthquake, making your situations easier to cope with in the aftermath of a strong seismic event.

Effects of earthquakes on your property

Weak earthquakes may not be felt, or cause a gentle sway with little or no discernible impact on objects or the structure of your home. Stronger earthquakes can cause a wide variety of hazards, including:

• hung objects falling from walls and ceilings;
• furniture and other household items can fall or fly across a room;
• food pantries, crockery storage and other cupboards may be affected as shelving or items stored on the shelves fall;
• mirrors and glass can break causing dangerous shards and splinters;
• tiles, fixtures, and fittings can become loose and/or fall;
• live electricity wires may become exposed;
• gas pipes can break, causing a fire or explosion;
• water pipes can burst, causing the house to flood;
• utilities like electricity, telephone (internet), water, and gas may be cut-off;
• swimming pools may crack open and leak;
• strong quakes can cause buildings to move-off their foundations and collapse.

Earthquake insurance

You can insure your Mexican property and its contents against natural disasters, including earthquake damage—and better policies also cover the costs of temporary alternative accommodation if your home becomes uninhabitable.

If you already have a home cover insurance policy, double-check the renewal date and that the policy specifically covers your home for earthquake damage, as not all policies are comprehensive.  You can learn about protecting your house and its contents on our detailed guide to insuring your home in Mexico.

Preparing your habitat for earthquakes

Some forethought and planning around your home situations can make a material difference when a strong earthquake strikes.  Most earthquake-related injuries and casualties occur when people fall trying to run during the shaking; are hit by falling objects or debris; and/or when they are struck by collapsing walls or buildings.  Considering how your habitat is furnished and arranged, and what impact an earthquake would have on the objects inside of it, can help you to mitigate damage and injury.

Bedrooms

Earthquakes can happen at any time, and it’s possible that you’ll experience an earthquake overnight while you’re in bed.  Situate your bed away from glass and don’t hang heavy pictures/frames or mirrors above the bed; consider also what you may have attached to or hanging from the ceiling above the bed.

Children’s rooms

If you have children, carefully review their bedroom spaces for potentially hazardous fixtures, fittings, and toys that might fall and cause injury during an earthquake. If you have children’s play areas in your home, check that any heavy items that could tip or fall are securely fastened, and cross check outdoor play areas (like tree houses) to mitigate the risk of heavy objects falling onto the children in the event that they are playing there when an earthquake happens.  Be mindful that mirrors and other glassware can fall and/or crack and break; consider relocating any hazardous objects away from children’s bedrooms and other play areas.

Tall and/or heavy furniture

Book-cases, wardrobes, and other heavy furniture which appeared solid and stable when you placed it can fall effortlessly during a strong earthquake—and can pose a lethal risk if they fall on you or block vital exits.

Review the current placement of heavy furniture in your home, and screw large pieces to the wall using metal brackets designed for this; consider also how falling pieces could block your evacuation route and make changes as necessary. Packed boxes, stored baggage, and other stowed heavy items should ideally be kept in defined storage spaces, or low-down, so that they don’t cause a falling hazard.

Fixtures and fittings

Review your home’s fixtures and fittings and consider how they may behave in the event of an earthquake.

Picture frames and wall art: Picture frames (especially those framed using glass) and mirrors should be securely fastened to walls using double-hooks, and mirrors especially can benefit from additional fastening with putty (mastique).

Shelving, cupboards and storage units: If you have floor-based shelving or cupboards that store heavy items, for example, in food pantries, crockery storage, laundry areas, tool sheds, etc. it’s wise to ensure that the shelving, cupboard or other storage units are securely screwed to the walls.  When an earthquake comes, these types of units can become unstable and fall over.  Replacing the items could be costly, and if someone is nearby them when the quake comes, units laden with heavy objects could fall on top of people.  It’s prudent to avoid storing heavy objects on open shelves near frequently used work or transit areas.

Overhead hanging objects: Overhead lamps and chandeliers should be routinely checked to ensure that they remain securely anchored, especially in older properties where the wood or cement ceilings they are attached to may be in a state of decay.  If you have a heavy (e.g. iron) chandelier over/near a bed or other space where people rest or meet (e.g. a dining table or desk), ensure it’s very well secured, or consider relocating or removing it.

Bookshelves and other storage: If you have heavily laden bookshelves, don’t place these too near any beds or other resting places, nor along key exit routes, even if they are fastened to the wall.  Heavy cabinets ought to be fastened to the wall if they are in a space near where people work or sit, or near doors or exit routes.  Consider installing latches on high cupboard doors to prevent objects from falling out of them in the event of a quake.

Water heaters

Most water heaters in Mexico are gas-fired.  Your water heater should be securely strapped to a strong load-bearing wall using appropriate brackets.  Ensure you know how to switch-off the gas feed and water supplies.  If you are (re)installing your home’s water heater, consider using modern flexible gas piping instead of metal pipework.

Learn more about caring for and insuring your home in Mexico

Mexperience publishes extensive information to help you plan and care for your home life in Mexico through guides, articles and free eBooks:

• Further advice about how to plan and what to do during and after an earthquake is available online.
• Read our free guides about house maintenance and home security
• Latest articles about property insurance
• Articles about real estate in Mexico

You don’t have to be legally resident to own a home in Mexico

You do not have to be resident in Mexico to own property here, so there is no need to qualify for residency status under the immigration rules to buy land or a house—whether you purchase directly, or through a property trust.

Note, however that when you sell the property, there are certain property capital gains tax allowances that you may access only if you have legal residency in Mexico.

Mexican law on property ownership

Mexican law on property ownership is comprehensive and provides protection for the seller and the buyer in all property transactions provided that the law is followed, and you (most usually through a Notary Public) ensure that all necessary documentation is present and that the procedures are adhered to.

Mexican law provides for private ownership of land by foreigners, and its law is specific about the way in which land rights should be transferred from seller to buyer.

A Notary Public will guide you through the details of these, but generally:

• Property may be purchased and owned outright for residential use by foreign nationals outside of the 100km (~62 mile) restricted land border zone, or outside of the 50km (~31 mile) restricted coastal zone.
• Inside of these restricted border and coastal zones, foreign nationals may own land through a fideicomiso (a property trust) which is set up through a local bank and provides for ownership of the land and/or property in all but name. See the section below for more details about this.

Permit required by foreign buyers

If you are not a Mexican national (natural or naturalized) and depending on which Mexican state the property or land is situated in, the transaction may require a special permit that grants a foreign national the right to hold title deed of a property logged in their name on the Federal Register.

Check with the Notary Public in the state where you are purchasing dealing with your transaction, who will advise you if this is necessary in your case and will usually offer to manage the filing on your behalf if it is.

Whether the land or property you intend to purchase is situated inside or outside of the restricted zone (see above), foreign buyers must apply for and obtain a permit to acquire property in Mexico.

By applying for the permit and accepting its terms, foreign buyers agree that they will not seek the intervention by their home country’s government in any matters related to the property, and that they submit to the exclusive jurisdiction of Mexican civil courts in all matters and disputes related to the property.

The permit application carries a fee and typically takes around six weeks to process and get issued—but timescales can vary.  Once the application is filed, the official file number may be used in reference for matters related to the property transaction while you wait approval and issuance of the permit.

The application for this permit is made to the Secretaría de Relaciones Exteriores, Mexico’s equivalent of the US State Department, who is responsible for processing and issuing the permits.

This Federal Law requirement was reintroduced in 2022, but we are told by associates that some states in Mexico are not enforcing it at present. Talk to your property agent and/or Notary Public for further details about this in the place where you intend to buy.

See also: Costs and taxes of buying property in Mexico

Fideicomiso: property land trusts in Mexico

The Mexican Constitution forbade foreign nationals from owning property that was within the restricted border zones. This law was intended to protect Mexican soil from foreign invasion, and a property trust provides a means for non-Mexicans to buy and hold land and property if it’s physically situated within about 30 miles of the coast, or within about 60 miles from a land border.

To enable non-Mexican persons to invest in land and property inside the restricted zones protected by the country’s constitution, the Mexican government introduced a system of land trusts—essentially a special type of investment ‘wrapper’ that enables you to legally and securely hold title of property in all but name.

In practice this means that any non-Mexican national who wants to buy a home with an ocean view, or near the beach or a land border with Mexico, they can do so by means of a special property trust, which is set up and managed through a local Mexican bank.

The trust holds the deeds to the property, and you and/or other persons named in the trust are sole beneficiaries to that trust—and by extension, to the property that is folded into it.

The trust gives full rights to do whatever you like with your property:

• It can be developed (in accordance with local planning regulations).
• It may be rented or leased.
• It may be sold, or given away.

The trust thus enables you to own the property in all but name.

The trust also enables you to name a beneficiary or beneficiaries to it, so you can bequeath it (and by extension, the property) to others.  Some people choose to buy Mexican property through a trust even if the property is not situated inside the restricted zone, as part of their estate planning preparations.

See also: Costs and taxes of buying property in Mexico

The role of the Notary Public in Mexico

The Notary Public is the most important legal person you will deal with when you make a property purchase investment in Mexico.

Under Mexican law, the title deed to the property must be prepared by a Notary Public, and the Notary is also responsible for calculating and reporting tax duties owed to the Mexican tax authority arising from any property transaction.

As a buyer, it is your right to choose the Notary Public you wish to work with, and it should be your first port of call after you have agreed in principle to purchase a property in Mexico.

Experienced buyers choose their Notary Public independent of the seller’s preference or advice.  The Notary Public will ensure that all documentation and permits are in order so that the transaction can proceed.

Read more about finding and working with a Notary Public in Mexico.

‘Ejido’ land and Title vs Possession in Mexico

You should be aware of ‘ejido’ land in Mexico, as there is a lot of it; and while many properties and developments now built offer a legal title deed, some properties continue to be transferred on ‘agrarian’ terms.

About Ejido land in Mexico

Ejido (agricultural) lands have a long history in how they came into being; these properties are akin to “commons land.”

The ejidos are usually owned by a community of local people and possession of the land is passed down through generations within the communities which own the parcels.

These land parcels do not have legal title (property title deeds – see next section) and any matters and disputes related to them are dealt with by local comuneros, at agrarian courts, usually termed Asambleas —assemblies— that meet about once a month and are led by the elders of the local community.

Legal Title vs Possession

There is a distinction between ‘commons’ land and land that is registered with a Title Deed recognized and enforced by Mexican civil law courts.

Some types of property in Mexico, especially rural or semi-rural properties —and some that are quite desirable— are only available for purchase under Agrarian terms, and while this type of property transfer gives you possession, it does not offer legal title.

Read more about buying, having, and selling property without title deed in Mexico

Title insurance for your Mexican property

Some buyers consider taking out title insurance on the property they buy in Mexico. Title insurance covers you should the property you buy subsequently turn out to have liens associated with it.

This is especially relevant if the property you are buying has been privatized, having previously been classified as being “ejido” (or “common”) lands (see previous section); but even if this is not the case, title insurance will protect you if any other previously unforeseen lien or charge is brought against the property before you took possession of the title deed.

Rates for title insurance are around the equivalent of USD $5-6 per USD $1,000 of the property’s sale value; payable once only at the point of purchase, before you close.

Consult a realty agent or other legal or consulting professional regarding matters relating to title insurance. There are several insurance companies that now offer title insurance for Mexican property and, as the number of providers increase, rates should become increasingly competitive.

Choosing the right location for your purchase

As with property purchase in any country, the location in Mexico where you choose to buy is all-important. It’s better to buy ‘less house’ in an optimum location than to purchase ‘more house’ in a sub-optimal location.

Choosing places to live in Mexico

To help you discover and explore potential places to live here, Mexperience publishes a curated list of locations to consider for living, working or retirement in Mexico—organized by popularity and notoriety and classified by the location type

Do the (back)groundwork

It’s unwise to buy on impulse in an area based on your first impressions, especially if you’re on a leisure visit there.

It’s prudent to be familiar with the area and the locale in that area where you intend to invest.

Also ask yourself how marketable the property is in its current condition and location, especially if you are planning to rent it, or should you want to sell it later.

You may want to rent something nearby to start with and get a feel for the place. Once you’re living locally you can assess things like the atmosphere, the local climates, the neighborhood in general, and get to know the locals so that you can get a genuine understanding for what it’s like to live there.

Match your needs with your location

Consider your current and changing lifestyle needs as you make your choices about the location for your property investment.

Real estate purchases require patient capital in Mexico as not all markets are as fluid as places in the US, Canada, or Europe can be—it might take more time to sell a property than you imagine.

Ongoing management of your property

Learn more about maintaining and securing your home in Mexico here on Mexperience.

Learn more about property in Mexico

Mexperience offers detailed insights about property in Mexico for buyers, owners, renters, and sellers.

• Latest articles and insights about real estate in Mexico
• Working with a realty agent in Mexico
• Insuring your Mexican home
• Enjoying your home and home life in Mexico