Getting the right property insurance in Mexico is a very important thing that you should consider. You will want to protect a valuable asset from any catastrophic events that could occur. A few natural disaster risks that can occur in Mexico are earthquakes, hurricanes, and floods. Property insurance companies have privileged to access topological, meteorological, and historical information so they can provide insurance within the postal code system in Mexico. The property insurance prices will be based using this system.
Who is eligible for Property Insurance in Mexico?
Many of the Mexican residential property owners will be able to get an insurance quote that will be based upon “named perils” or “all risks” basis and the insurance will cover any structural damages to the property, third party natural incidents (For example, if a tree on your property falls on your neighbor’s property causing damages) along with providing insurance coverage for the items that is in the home if there would be a robbery or if the home has flood damages.
There are some situations where property insurance in Mexico is unavailable. Here are some properties that are generally uninsurable in Mexico:
- Ejido Land:
- Untitled Property in Mexico: Under agrarian or Ejido terms state that some of the property in Mexico will never have a legal title deed. The buyer will occupy the property and enjoy it, but the Mexican civil law courts will see this property as one without a legal title and deed. If your property in Mexico has been purchased under the agrarian terms, then you should know that if you add a structure to the property the structure will not be able to be insured because if there was a claim the insurer will want to see that legal title and there will not be one to show.
- Some of the homes in Mexico come with an amazing feature, which is an open-air palapas, and this feature is constructed with bamboo, palm leaves, and wood. The palapas feature will be located on the property as a stand-alone and they also can be attached to roof gardens and terraces. The palapas open-air feature is open to all the elements and they are also a fire risk, which is why many insurance policies will not include the palapas with the property coverage. You should make sure you read the small print of the insurance policy.
- Commercial Property:
- If you have purchased property in Mexico and you want to insure it, but the property will be used as commercial purposes, then you will need to contact a broker locally that specializes in commercial property insurance in Mexico. The broker will provide a detailed quote for commercial insurance. If you have purchased a home in Mexico and you intend to use it for commercial reasons (excluding having a home office) or you rent a room in the home while you are living there, then this is called “simultaneous occupancy” and you will need to have commercial property insurance. The commercial property insurance can be complexed and the insurance policy is costly, but it will provide coverage for all the risks for the home.