People who have bought Mexican property (or a watercraft) will be wise to put some money aside in their budget for purchasing property insurance. That way, if any unexpected circumstances arise, the house, watercraft and personal property will be covered to eliminate any risks involved in owning a property overseas.
Mexican Property Insurance
Because of the wording and kinds of coverage available on Mexican property, you can’t expect Mexico’s property insurance policies to be exactly like those found in the U.S. and Canada. So, don’t assume that standard coverage will mean the same thing when you buy your Mexican property insurance from a Mexican company. To remedy this discrepancy, there are U.S.-based companies specializing in simplifying the wording and coverage options for insurance policies underwritten by the Mexican insurance companies. These companies can create legally binding insurance policies for these Mexican insurance companies because they work with these companies to ensure the package they present resembles what people in America are used to seeing without deviating from Mexican law.
Mexican or foreign insurance policy
Unless you just want to have your policy carried out through an actual Mexican insurance company, there is no reason not to choose one of these U.S. firms that specialized in dealing with insurance laws in Mexico. That way, you won’t have to be fluent in Spanish and the terminology used in Mexican insurance policies, and it will make it a lot easier to file your claim should a stressful situation arise.
Also, keep in mind that a U.S.-based policy may have features (like third party liability) in the standard package that may not be included in the standard coverage in the Mexican policies. Most Mexican policies will have these features covered at additional cost.
Therefore, your decision to choose Mexican property insurance from a Mexican insurer or a specialist U.S. or Canada based company will take into consideration what types of things you want covered in your plan.