If you own property in Mexico, or if you’re planning on buying some, it is important that you consider how you will insure this valuable asset against unforeseen circumstances and catastrophic events. Unlike many European countries, Mexico comes with a slightly greater risk of natural disasters. Hurricanes, severe floods, and earthquakes are some instances you may wish to consider. This is why property insurance companies have access to huge amount of topological, meteorological, and historical data; it enables them to make a risk assessment based on your area and price premiums accordingly.
Property Insurance in Mexico
Most residential owners in Mexico will be able to get quotes on both an “all risks”, and “named perils” basis for property insurance. These can cover a plethora of events, including severe structural damage, cover for third party incidents (for example if a tree falls onto your property in a storm causing injury or damage) as well as covering your homes contents in the case of flood or burglary.
Uninsurable properties in Mexico
Most property in Mexico is insurable, but there are some situations and structures which it is impossible to insure your property in Mexico.
Untitled Property: some Mexican properties can only change ownership in Agrarian terms (this being common land known as Ejido). This means that the purchaser gains the enjoyment of the land, but can never hold a legal title deed as recognized by Mexican civil law. If you own a property on such terms you not be able to insure any structure built upon it as the insurer will demand to see the legal title deed, no simple proof of possession.
Palapas: Some homes in Mexico feature elaborate, open-air structures called Palapas. These are built using a combination of wood, bamboo, and palm leaves, and they act as standalone features, roof gardens, or as annexes to other terraces. These are beautiful, but notoriously vulnerable to fire; property insurance will always exclude these structures.
Commercial property; if you wish to insure a property that is most used commercially then you will need to find a specialized insurance broker so that you can get detailed coverage. These policies are more complex and expensive than those which simply cover the risks involved with a residential dwelling. This is the kind of insurance you will need if you are insuring a property which is partly residential and partly commercial, or a property in which you rent out some of the rooms (known as “simultaneous residency”).
Your home or business site is one of your most valuable assets; ensure you protect it from the elements and all eventualities with appropriate property insurance in Mexico.