Property Insurance in Mexico: What You Need To Know

 Many people aspire to own Mexican real estate. The beautiful weather, laid-back culture, and excellent food make it the favored destination for Americans and Canadians to buy a second home or retire. A key element of becoming a happy homeowner in Mexico is ensuring that your investment is fully protected from any uncertainties. The best preventative approach is to buy proper property insurance in Mexico.

Property insurance in Mexico may differ from your home country, and some features that you may assume are standard may not be covered under a Mexican policy. Furthermore, the policy wording will differ, though many insurance agency, such as West Coast Global Insurance, who has been providing insurance policies catered to the U.S. and Canadian Nationals in Mexico since 2004. Don’t worry! The Mexico Insurance Policies they provide are written under the provision of the Mexican law.

Which Structures are Covered?

Because many homes in Mexico are made up of multiple structures, such as guest houses, casitas, and cabanas, your property insurance must cover all structures on the property. Stand-alone buildings in a compound are considered additional structures, so be sure your property insurance policy explicitly states which structures are covered.

Furthermore, structures with palapa thatch roofs and wood-framed constructions are often deemed high risk and thus excluded by insurance carriers. Because you will almost certainly have to pay a hefty premium to include those structures in your policy, it may make sense to leave them out. Consider the cost of repairs or replacement against the extra cost of including them on your policy to make an informed decision.

Is Coverage for Tenant Liability included?

If you plan to rent out your property as a vacation rental, be sure you get tenant’s liability coverage or Short Term Vacation Rental Liability Insurance. This coverage is all the more important if you depend on rental income to sustain your standard of living. Mexico Home and condo Insurance policies do not provide this type of coverage. Your option is to purchase a separate policy for this important coverage if you plan on renting out your property to strangers.

When you buy property in Mexico, it is essential purchasing Mexico Property Insurance that protects your investment. Review your policy to ensure the coverages that matter the most to you are included & not excluded. Finally, if you own property with multiple structures, make sure your policy lists each detached structure in the notes section and they are covered under your policy.

If you plan to buy a property in Mexico, West Coast Global Insurance Services has made it easier than ever to protect your investment from the unexpected. Visit their informative website to learn more about how to secure coverage for your most valuable investment in Mexico. Click here to visit their Mexico Home Insurance Webpage to get a quote for your property located in Mexico.