When homeowners are selecting Mexican home insurance, then the insurance will depend on your needs, budget, and your circumstances, because in Mexico, you can decide to insure your property fully or partially. The premium will be based upon several different factors, which include the age and value of the property, the location, and any events that you would like to be covered. There are pitfall of Mexican home insurance and homeowners should beware of these pitfalls.
All Risks Mexican Home Insurance
A form of comprehensive coverage is the “All Risks” coverage that some policies of Mexico home insurance provides. This means that most events will be covered that involves your home. You can upgrade your home insurance policy to a better policy that would cover wind, volcanic eruptions, hurricanes, earthquakes, and fire. These catastrophic incidents are not covered by some of the Mexican insurers.
Named Perils Mexican Home Insurance
Homeowners that are looking to lower their premiums can limit “Named Perils” that has been assigned to your policy. Homeowners can take all the All Risks coverage and then only certain events will be covered and some of the certain events will not be covered. Some of the cheaper policies are called the “Named Perils” insurance types. These type of insurance seem to be a comprehensive insurance plan, but is generally not. A professional and good insurance broker will let you know clearly between these types of insurance plans during the sale, then provide you different coverage options and prices.
What a general Home Insurance Policy will cover
The insurance policy should always cover the main structure of the property, and sometimes the carport, garage, cabanas, studios, and outbuildings are included in the coverage, and sometimes they are not, because the homes in Mexico usually have several structures on the property with the structures surrounding the central courtyard. The number one insurance rule is if these structures are connected, then they will be treated as one building and they will be covered.
A good insurance policy will always cover any of your personal goods and items that you and your guests own along with any employees items at your home. Some of the policies also provide coverage for very valuable possessions including money, jewelry, art, any anything valuable for your business. You may have to ask for a higher limit coverage for different items on your property and there is a special section available to list these items on the application. There is theft coverage available, but this coverage will depend if the items were specifically listed or ‘scheduled’.
Rental Income Loss and Loss of Use of Property
If your property in Mexico is used for work or being used as a rental property, then you should make sure your insurance covers any “loss of use”. This will protect you and cover you if you have any living expenses in case your property has been damaged or requires a lengthy rebuild. If your property is a rental, then you will be covered for rental income loss, but many insurance providers request evidence, such as a rental contract.