When you own property in Mexico, there are specific safeguards that need to be considered. The first and most important one is to protect your investment. And the way to do that is to make sure you acquire the appropriate home insurance. This includes insuring the property itself, its contents and attached assets. Just because you are a foreign owner, does not mean you can’t protect your investment. There are several types of home insurance that you can put in place to offer peace of mind.
Mexico Title Insurance
Title insurance protects you from unforeseen liens that surprisingly show up after you purchase the property in Mexico. Parties involved could have missed either a private or commercial debt or lien during the title search before closing. Title insurance would protect you to a certain extent when and if this occurs. The cost of this insurance can be $5 to $5.50 USD per $1,000 USD of the assessed value. You can purchase the insurance at the time of closing. Consult with your agent, broker or legal advisor regarding your options.
Property Insurance
Perhaps the most important type of home insurance is the property insurance. This is a safeguard against numerous circumstances. This includes not only the property, but also other line items that belong to, reside in or are associated with the property. You can also include things like watercrafts, furniture, vehicles and other personal assets. You can select from a variety of policies that include gap or market value replacement or compensation for losses due to climatic and non-climatic conditions. Consult a professional for additional information regarding a policy.
Personal Property Insurance
This type of home insurance includes such coverage for personal items declared on the originating policy for, not only owner(s), but guests/renters and even employees. You can also include coverage on currency, precious metals, paper-securities, artwork and other tangible assets. Your provider must update these types of valuable assets periodically with coverage limits. But in the event of a loss, getting something back is better than getting nothing at all. Again, consult with your agent or broker.
Beachfront Property Insurance
If you are fortunate enough to have a beachfront property, you can secure a policy that will lend relief in case of losses to property and personal possessions due to a natural disaster. Like in any other country, the premiums will be higher. With Mexico – especially the Yucatan Peninsula – being surrounded by warm Caribbean-fed waters, extreme weather can occur at certain times of the year. You should consider budgeting in the added cost for this type of coverage. Check with your agent or broker on pricing and options.
Other Insurances
You can modified multitude of policies, known as riders, with your insurance company. This is a provision that adds and/or amends specific terms of coverage to the main policy. You can select a policy that suits your needs and then add an amendment that allows certain items/assets special attention or coverage. There are other home insurance policies such as Third-Party Liability, Loss of Use or Rental Income, and Renter Liability Coverage that can also be obtained. Your agent or broker can give you more information regarding these sorts of policies.
Homeowner’s Insurance in Mexico
Insuring your home in Mexico can be a simple process pending your knowledge and versatility. If you are familiar with doing business in Mexico, speak fluent Spanish and spend lots of time in your international home, you should consider buying locally. Ask others who own property in your area who they use. If you feel more comfortable dealing with an American company that offers coverage in a foreign country, do your research and ask plenty of questions beforehand. Nevertheless, you should do this in both scenarios.
Remember that most insurance companies sell their products and services through brokers. Home insurance companies will use underwriters to determine how much coverage is needed and if they will even accept the policy as written. When a broker recommends a company, you should do your research thoroughly and make sure the company has an above-average rating. If the agent is doing their job, they should also suggest the types of coverage that might be suitable for your particular situation. Don’t be afraid to request a specific rider that covers any unusual circumstances. The underwriter can originate or adopt a rider.
Purchasing home insurance is a must – especially when investing in a foreign country. So, talk to your agent, broker or advising company and get shopping. If you are just in the process of considering the purchase of a Mexico property in the Riviera Maya – whether it’s Tulum, Playa del Carmen or Cancun – make sure to take a look at our listing inventory.
And remember, at Top Mexico Real Estate…we make it happen!