Family Life And Property Insurance Concept. Wooden Figurines Rep

The beautiful scenery, warm climate, and delectable food make Mexico a dream place to own a second home or to enjoy retirement. Considering becoming a Mexican property owner? If so, make sure you are obtaining adequate property insurance to safeguard your investment accordingly against unforeseen events and natural disasters. Property insurance in Mexico can be quite different when compared to property insurance in the United States or Canada so we will discuss below what you need to know about property insurance in Mexico.


Mexican Property Insurance Coverage

Mexican property insurance policy wording is different than US property insurance policies, and coverage is not the same as what you may be used to back home. Property insurance companies based in the United States have begun offering Mexican property insurance policies for expats in Mexico, and Mexican insurance companies underwrite the policies so it is valid under Mexican law. Unless you are fluent in Spanish and feel comfortable dealing with claims in another language, we recommend you purchase a property insurance policy from a US-based insurer who can offer coverage in Mexico. It will be much easier if you are working with a policy in English if you have to file a claim.  Filing an insurance claim can be stressful, so having the ability to work in your native language will reduce the difficulty you will have in dealings with the insurer.


Multiple Structures To Insure

Many Mexican properties are made up of multiple structures such as guest houses, studios, and casitas. If your property has multiple dwellings, make sure your property insurance policy covers all structures. Your policy should cover the main structure of your house, but make sure that your property insurance policy clearly states that all other buildings on the same property such are covered in the event of a claim. Also, potentially risky structures such as palapa roofs and wood-framed buildings are often excluded from insurance policies. You will likely have to pay a high premium to have them included so it may make sense to leave those structures out of your policy.


Protect Your Rental Income

Is your Mexican property also a vacation rental? If so, renter’s liability coverage is important to have.  If you rely on vacation rental income, definitely include coverage to protect yourself from a loss of use if something happens to your property.  Renter’s liability coverage will help cover living expenses if your rental becomes damaged and is not suitable to rent. Renter’s liability coverage is typically not included in standard policies so you may have to pay an additional premium to have the renter’s liability element included. However, the additional cost is worth it for individuals who own and rent out vacation rentals.

In conclusion, it is important to purchase a property insurance policy for your home in Mexico. Make sure you select the coverage and a policy that you understand and adequately protects your investment. Ensure that third-party liability coverage is included, and make sure that your rental income will be protected if your home is also a vacation rental. Finally, if you own property with multiple dwellings, insure all structures are included and make sure the details are clearly stated on your policy.

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