Mexican Home Insurance

In order to help you navigate the unique trials that come with finding the right home insurance in Mexico we have found and summarized a great article, originally written and published by Mexexperience. If you wish to read the full original, however, there is also a link to the article at the bottom of this page below.

What you need to know about Mexican Home Insurance

Your needs, circumstances, and budget all affect to what extent you can insure your property and it’s contents, and your premiums may depend upon many a factor including the location and type of property, as well as its age, size and value, and which events you wish to be covered for will affect the price of your premiums.

All Risks—vs—Named Perils

There are two main types of homeowner insurance to consider; Named Perils and All Risks. Named Peril policies allow you to name a few specific risks which you wish to be covered for, for example fire, earthquake, and volcanic eruption, or wind and flood, but will leave you uncovered in the event of any catastrophic events or incidents that are left unnamed. On the other hand, an all-risks policy is a form of comprehensive cover which will ensure a pay out in the case of most incidents which involve your home. As you might expect this is the more expensive of the two policy types. A good broker will take the time to explain the differences between each type of cover in terms of price and cover level.

Structural Insurance

It’s key, obviously, that your policy cover the main structure of your house, but you also have the option to cover other structures on your land such as carports, guesthouses, and other buildings like garages. This is common as many Mexican homes are composed of several structures. The general policy is that directly connected structures are considered to be one building, and anything free standing is counted as an additional building. High risk structures such as those with wooden frames will raise your premiums quite considerably.

Personal Property

A good insurer will allow you to cover your personal property, and that of any guests or domestic employees you may have. Some policies will also allow you to add special cover for very valuable items like jewellery, electronics, sporting equipment, fine arts, and money (up to a certain limit). If you require higher limits for specific items this will be achieved by listing them on a special part of the application form. Theft coverage is variable, and often depends on what is listed on the form.

Third Party Liability

Good insurance can also protect you and your family from lawsuits and other liability cases if you wish it to. For example, if your garden wall were to collapse and injure someone, or a tree from your property toppled and hit a neighbor’s house, this kind of insurance would cover your liability. This often does come at extra expense, but it is nonetheless a good idea.

Loss of Use or Rental Income

If your property in Mexico is a second home or rental investment you might want to consider this addition to your insurance policy; most policies will not cover renter liability, but you can add such cover to your property (the price can be steep, though). It may seem like an unnecessary expense, but such cover would either provide you with living expenses, or cover lost rental (provided you can prove there was a rental contract) if your house is rendered uninhabitable for some reason. This is definitely the smart option, even if the prices seem a little much.

Reference: original article found at Mexperience

Mexico Property Insurance