Finding the right home insurance in a country that is not your home country can be a real trial, but if you’re looking for home insurance in Mexico we can help you; this great article by Mexperience has been handily summarized below for you.
Home Insurance in Mexico
Depending upon your needs, budget, and circumstances you can partially or fully insure your property and contents at a reasonable price in Mexico. The premium costs will depend on many factors including the age, value, and type of property you own as well as the location it sits in and the events you want coverage for.
All Risks or Named Perils Home Insurance
Some policies offer “all risks” cover which is essentially a form of comprehensive coverage, and it will ensure a pay-out for most of the incidents that might damage your home. Some of the better policies will offer you the option to cover for catastrophic incidents like wind, fire, volcanic eruptions, hurricanes, and earthquakes though, some Mexican insurers are unable to underwrite these events.
If you wish to lower your premiums you can elect to limit the number of “Named Perils” assigned to your policy instead of opting for an “all risks coverage” policy. This will cover you for the names perils but no other events. Cheaper insurance policies will generally be of this kinds even if they seem to cover all risks. A good broker should make a clear distinction between the two options and note the differences in cover and cost.
Your policy should definitely cover the main structure of your home, but you may also choose to cover guesthouses, carports, garages, games rooms, cabañas, equipment rooms, studios, etc, as some Mexican homes are composed of more than one structure. The general rule in insurance is that if its directly connected it’s treated as one building. Structures considered high risk like wood framed buildings and palapa roofed structures tend to be explicitly excluded from all policies. Expect to pay a high premium to insure these.
A good policy will cover personal goods and chattels owned by you, your guests, and any domestic employees while they are in your residence, and some also have coverage for valuables like jewellery, fine arts, and money (up to a limit). Theft coverage varied and is dependent upon whether or not it is specifically listed.
Third Party Liability Home Insurance in Mexico
This is something to consider as such policies will cover your personal liabilities to third parties in order to provide protection from lawsuits and demands presented against you in Mexico. A good example is this; if a wall falls down and injures someone nearby, or a tree from your garden topples and damages a neighbor’s home your insurance policy will, if you sign up for this, cover your liability in such circumstances.
Loss of Income or use
When you rely on your property for work or rental income any damage to it can be really catastrophic. This is why, in such cases, it is smart to cover yourself for loss of use or rental income; such cover provides additional living expenses and makes up for lost income (if you can prove a rental contract exists) while your home is repaired. Most basic homeowner policies will exclude homes that are rented out, or will add a hefty supplement to the policy premium in order to add renter liability to your coverage, but it’s still worth considering.