Insurance coverage for your home and property in Mexico

Owning property in Mexico carries the same responsibilities as owning property elsewhere, and protecting your valuable physical assets against unforeseen events is an essential consideration when formulating your annual budget.

Drafting the property insurance policy in Mexico

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

Family policies, fully subscribed in Mexico

To help foreign residents who own property in Mexico purchase familiar insurance products, specialty U.S.-based companies have developed property insurance policies that reflect the wording, terms and coverages included in US and Canadian policies.

The insurance policy is fully underwritten by a Mexican insurance company (by law, it has to be), but the American companies work in partnership to create a product that is familiar to those who buy insurance in the United States and Canada, and that is legally sound under Mexican law. Premiums are paid in US dollars and payments are also paid in US dollars.

Policies that adapt to your situation and needs

Home insurance policies available on 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 located in Mexico, the risks (and coverage) you need to insure will vary. For example, homes near the coast should be insured against damage from hurricanes and earthquakes, while inland coverage will only be needed for earthquakes (and perhaps floods, if your home is located near water).

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

• Damage caused by hurricanes and earthquakes.
• Damage caused by wind storms and flooding
• Injuries to housekeepers and other workers in your home
• Theft and vandalism
• Damage to third parties, e.g. e.g. falling trees
• Coverage for specific liabilities of the owner, for example, in condominiums

Can cover all risks or dangers named

Policy options and choices include all risks against the named perils, whether to cover assets such as outbuildings surrounding the main property and the option to insure your personal property.

• The best policies will include coverage for third party liability– This is useful in case someone who does not live in your home has an accident on your property, or when damage is caused to a neighbor, for example by a falling tree.
• This article on liability for your home shares more details.
• Other considerations to keep in mind when evaluating your insurance needs include purchasing coverage for any boats you may own, as well as special agreements for condominiums, where some responsibilities are shared and others are specific to the owner.

Regardless of the type of insurance you choose, the insurer that underwrites the policy is much more important than the broker or agent selling you the product: in the event of a claim, the integrity of the insurer will determine payouts, not the insurance broker. .

Learn more about how to care for and insure 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 e-books: