All You Need to Know About Property Insurance in Mexico

Property Insurance in Mexico

Are you a property owner in Mexico or do you intend to be? Are you wondering what type of insurance that you should purchase so that if there is a catastrophic event or circumstance your most valuable assets and property will be protected? Hurricanes, earthquakes, and flooding are the main disasters that could occur in Mexico.

All You Need to Know About Property Insurance in Mexico

Most of the residential property owners in Mexico can get a quote from professional property insurance companies in Mexico. Your policy will either be a “named peril” or “all risks” property insurance that will cover structural damages, third-party claims (For example, if a wind storm causes a tree to fall on your property) along with the contents that is in the home in the event of a robbery or flooding.

In Mexico, most of the properties are insurable. However, there are some circumstances that you should know about as there are some properties in Mexico are not able to be insured.

Untitled Properties

There are properties in Mexico that can be purchased under agrarian terms (known as Ejido land), which basically means that the buyer will take possession of the land and property and they can enjoy it fully, but there is not a title deed for the property and the property will be recognized in al Mexican civil courts. If the property that you own or have purchased in Mexico is listed under the agrarian terms, then you should know that you are unable to ever have any structure or buildings on the property insured. The reason is if there were an insurance claim the insurance company will want to see the title dead on the property and not just a proof of possession for the property.


Many of the homes in Mexico have a luxurious open air palapas. The open air palapas is built by using a variety of palm leaves, bamboo, and wood, and the palapas can be attached to the property or be a stand-alone feature. Unfortunately, the palapas are open to the elements and they are also a huge risk for fires. Many insurance policies will just exclude the palapas so you should make sure to read the small print in the insurance policy to see if it is covered.

Commercial Properties

If you have purchased a property in Mexico and you are going to use it for commercial purposes then you will have to contact an insurance broker in the local area that specializes insurance coverage for commercial purposes. You will need to ask the insurance broker detail insurance quotes coverage. You should also know that if your residential property will be used for any commercial reasons (this doesn’t include a basic home office) or if you are going to rent a room or space at your property and you are the main occupant (simultaneous occupant), then you will have to have a commercial insurance policy, which is very costly and complex than a regular insurance policy that will cover many of the top risks at the residential property.

The above information is all you need to know about property insurance in Mexico.

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