The warm and sunny climate, the breathtaking and beautiful scenery, and the delicious food are just a few things that Mexico the perfect place to retire. Are you thinking about becoming a property owner in Mexico or finding that dream second home? If you are, then you will want to protect your investment and obtain the right amount of property insurance so your home will be protected against natural disasters and unexpected events. Property insurance is a little different in Mexico than it is in Canada or in the United States, so we have provided helpful information that you will need to know on how about insuring your Mexican real estate.
Insurance Coverage for Mexican Properties
The insurance policies are worded differently for Mexican property insurance than it is for the United States or Canadian property insurance. The insurance coverage levels are typically not the same either. Recently, insurance companies in the United States have started providing property insurance for properties in Mexico, which is ideal for expats in Mexico. The insurance is valid in Mexico because insurance companies in Mexico underwrite the policies. It is recommended that you purchase your property insurance for Mexican properties from a US-based insurance specialist that offers property insurance coverage in Mexico unless you are very fluent in Spanish. If you happen to have a claim, then it may be easier dealing with an insurance company that speaks English. Anytime anyone needs to file an insurance claim it could be stressful, which is why having to talk to someone in your native language will make this process easier, and it won’t be as trying.
Insuring Multiple Structures
Many properties in Mexico are comprised of multiple structures. The multiple structures may include casitas, guest houses, and studios. It the Mexican property that you have purchased has multiple structures, then you should make sure that the property insurance that you have purchased covers each of these structures. The property insurance policy should cover the main house and all structures. The insurance policy should state clearly that all of the structures are completely covered in case you have a claim. Many structures such as buildings that are wood-framed and palapa roofs are referred to as a risky structure, and many times these type of structures are excluded from coverage in the insurance policy. If you want to add these type of structures to your insurance policy, then your insurance policy will be much higher and costly. Sometimes these type of structures you should consider leaving off your insurance policy unless you don’t mind paying the higher premium.
Rental Income Properties
Is the property that you have purchased in Mexico a vacation rental? If it is, then you will want to make sure that you have renter’s liability insurance coverage. If the property is a vacation rental and you depend on this income, you should add extra coverage just in case something occurs to your property. This type of insurance will cover any expenses if the rental property has become damaged and if it was not available to rent out. Usually, renter’s liability insurance is not included in a regular property insurance policy, so this will be additional coverage that you will need to pay for, but the added cost for this additional coverage is actually worth it for those property owners who rent out their property for vacation rentals.
In conclusion, it is very important that you have the proper property insurance for your second home or retirement home in Mexico. You should make sure that the insurance coverage will fully protect your investment. Third party insurance coverage should be included and this will protect the income for your vacation rental. Every coverage that you are wanting for your Mexican property should be included and clearly listed on the insurance policy. It is very important that you insure your Mexican real estate adequately to protect your investment.