Insuring Real Estate in Mexico

Insuring Real Estate in Mexico

Unforeseen catastrophic occurrences is one of the most important reasons why you should insure your property and valuable assets in Mexico. Insuring real estate in Mexico is a must if you own property in Mexico. Natural disaster risks such as severe floods, earthquakes, and hurricanes in Mexico are main reasons why insuring real estate in Mexico should be done.

Insurance companies have the ability to get data with meteorological, topological, and historical events, which gives the insurance companies the ability to determine the risks that are based upon the postal code system in Mexico. The insurance companies will provide the accurate prices for property insurance premiums when insuring real estate in Mexico.

Insuring real estate in Mexico

If you own residential real estate in Mexico, then you can receive an insurance quote that will be based upon “All Risks” or “Named Perils”, and the insurance quote will cover top eventualities that include any structural damages, third-party occurrences (such as windstorm causes a tree to fall on the neighbor’s property and caused damages) along with burglary and flood damages that will cover contents in the home.

When is it impossible to insure real estate in Mexico?

Generally insuring real estate in Mexico can be done easily, but there are some instances when real estate in Mexico is impossible to insure.

Trying to insure ejido property or untitled real estate in Mexico:

Common land intended for the purposes of agrarian use in Mexico is known as Ejido land. Generally speaking a foreign national will not be able to legally purchase ejido land nor insure it. The buyer can gain access to the land and can enjoy the property, but there is no legal title deed to be owned per se. If you have purchased property in Mexico with the agrarian terms you should know that you will not be able to insure any type of structure that you have had built on the property. Why? The reason why is if there would be a claim filed against the insurance company the insurance company will need to see the legal title for the property, which you will not have.


Many of the homes that are purchased in Mexico have an open air palapas, and this elaborate feature is built out of a variety of items, which include bamboo, palm leaves, and wood. The palapas can be a stand-alone structure on the property or it can be attached to the home or roof gardens. The palapas are open air and is susceptible to the elements and they are a major risk for fires. Many insurance policies will not cover the palapas and you should read all the small print in your insurance policy to see if yours is covered.

Commercial Properties:

If your real estate in Mexico is intended for commercial purposes, then you will have to find an insurance broker locally that actually specializes in this type of insurance so you can get a quote for insurance coverage. If your residential home will also be used for commercial activity or you will be renting some of your property while you will be occupying the property (Simultaneous Occupancy), then you will have to purchase commercial insurance for your property. A commercial insurance policy in Mexico covers many risks for residential homes, but they are also more expensive to pay too.

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