Property Insurance

Property Insurance in Mexico

Mexico is perfect for those individuals who are wanting to retire in paradise or those who are wanting to purchase a dream second home. The beautiful beaches and natural scenery, year-round excellent weather, and delicious food are some of the reasons why Mexico is a great place to retire and have that second home. Are you considering purchasing property in Mexico? If you are, then you will want to make sure that you also purchase the right property insurance so your investment is safeguarded. Property insurance policies are not the same in Mexico as they are in the USA and Canada, which is why we have provided information on property insurance in Mexico below.


Property Insurance in Mexico

The wording with Mexican property insurance is very different than it is with US property insurance policies, and the property insurance coverage is definitely not the same either. There are property insurance companies that are based in the US,  and some companies are now offering property insurance for Mexican properties, which is ideal for expats living in Mexico. Mexican insurance companies will underwrite these insurance policies, which is legal and valid under the laws in Mexico. Are you very confident with your Spanish and do you feel like you can deal with an insurance claim that is spoken in a different language? If you aren’t, then you should buy property insurance from a company that is based in the US, which will also make it easier if you need to file a claim. Anytime you have to file an insurance claim it is a stressful time, but if you can file that claim and talk to someone that speaks the same language as you, it will help reduce your stress level during the claim process.


Make Sure To Insure Added Structures

Many of the real estate properties in Mexico have added structures on the same lot. These structures include studios, casitas, and guesthouses. If your real estate property in Mexico has these structures, you will want to make sure that your property insurance clearly covers these additional structures. The insurance policy should cover the home along with all the added structures on the property in case there is a claim that needs to be filed. Palapa roofs and wood-framed buildings are considered risky structures, and they are usually excluded from property insurance policies. These buildings are high risk and insuring them is expensive, which is why many people don’t add these structures to their property insurance policy. Weigh out the pros and the cons based on the premium cost to decide whether it makes sense to include them, or leave them out.


Protecting Mexican Rental Property Income

When you purchased your Mexican real estate, were you planning on it being a vacation rental for added income, too? If you did, then you will want to make sure that you have renter’s liability insurance coverage. If the vacation rental provides regular income that you are depending on, then this coverage should be included on your insurance policy in case something happens to your vacation rental property. The renter’s insurance will cover any living expenses if the vacation rental is unlivable or damaged. Renters insurance is never added to a regular insurance policy so this would be an added cost to have it included on the policy. The additional cost is actually worth it for people that rent out their vacation rental.


In conclusion, purchasing property insurance in Mexico is very important. All coverage that you are wanting should be added, and you should always read the insurance policy thoroughly to make sure that your investment is fully covered. All structures on the Mexican property should be included in the insurance policy and you should make sure that all details have been added, too.

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