Top 4 FAQ's About Buying Mexico Home or Condo Insurance

In recent years, there has been an increasing number of foreign nationals who have purchased homes in Mexico. This trend is primarily driven by expats and retirees from the U.S. and Canada, many of whom are cashing out their savings to move to Mexico.

Are you one of those people investing in Mexican real estate? If Yes, or thinking about it, the first thing you should do is make sure your new home is insured. Insuring your home in Mexico will mitigate your liabilities in the event of an unforeseen disaster. If you are not covered, you could lose a fortune — possibly even your entire life savings.

Here are four questions about Mexican Home and Condo insurance answered:

Q1. Are Mexican Home and Condo insurance policies the same as one in the U.S. or Canada?

No. Home insurance policies in Mexico differ from those sold in the U.S. and Canada. Because the policy wording differs and the types of coverage offered varies, several items that you may assume are standard may not be there if you buy your insurance in Mexico directly from a Mexican insurance provider.

U.S.-based insurance brokers that mainly cater to the Mexico Market — such as West Coast Global Insurance — offer online Mexican insurance policies that reflect the wording, terms, and coverages commonly seen on U.S. and Canadian policies to overcome this issue. The only difference is that U.S. brokers partner with Mexican underwriters to provide a product familiar to people purchasing insurance in their home country, which is also valid in Mexico.

Q2. What does Mexican Home Insurance cover?

Most Mexican home insurance policies protect you and your family from potential litigation by covering your liability to third parties. Comprehensive policies will also cover your home in the event of earthquakes, hurricanes, and intense tropical storms.

Q3. Do you need to buy Mexico Condo insurance?

Condo associations in Mexico usually have commercial blanket coverage that covers the entire property. Typically, this covers the property's main structure and communal aspects, such as pools or garages. These policies are often quite limiting in terms of what they will cover — many exclude third-party liability and demand a significant premium to include it as an optional extra. This means that condo owners are held liable with elements not included in the policy on a unit-by-unit basis.

If an event in your condo affects an adjacent condo — for example, a burst pipe in your bathroom that damages your neighbor's room below — you will most likely be liable for repairs to both your and your neighbors' damages. Another example is when an expensive or valuable asset gets destroyed by a named peril- fire, for instance- then your Mexican Condominium Insurance Policy can have you covered. Having a separate condo insurance policy will protect you in such situations.

Q4. Is it possible to insure a beachfront or waterside property?

Beachfront and waterside properties can be insured, although insurance premiums may be higher due to the additional risks of storms and flooding in these areas. Also, your property is subject to examination, ensuring it is High-Velocity Hurricane Zone (HVHZ) approved, depending on which Mexican insurance carrier accepts the risk based on value of the replacement cost.

To cover all the what-ifs, your property and investments in Mexico deserve the most comprehensive protection. If you are unsure how much coverage you need for your Mexico Property Insurance, talk to a reputable insurance provider like West Coast Global Insurance Services. To get started on the best Mexico home insurance policy for your needs, fill out their Mexico Home & Condo Insurance Online Application.

West Coast Global Insurance Services is dedicated to continuously researching our industry for the most comprehensive, best-priced insurance policies available in Mexico.