Anytime you own property in Mexico, especially if the property is a home or yacht or an expensive luxury item, it is very, very important that you insure all of your assets, so you are protected and covered if there is any catastrophic circumstances. You should consider insuring your property in Mexico an essential need and it should always be added into your budget. Having your personal property, watercraft, and your home in Mexico covered fully will eliminate any risks in case there is any unforeseen catastrophic circumstances.
Insuring your property in Mexico
Firstly, you should be warned that the policies for insuring your property in Mexico are not the same as you find back home in the USA, Canada or Europe. The wording is not the same and there are different types of coverage that are different too. You may think that you have purchased a standard insurance policy for your property in Mexico, and expect the same kinds of clauses and coverage as back home, but you will be surprised to find that that is not always the case. If you don’t speak Spanish to a high level, you may find that the small print is very confusing and when the time comes to use your insurance you may find that you are not covered as well as you thought your were.
Using a US or Canadian Company
You can bridge the insurance gap by choosing to use specialized companies that are based in the U.S.A. or Canada that offer coverage for your property in Mexico. The way these companies work is that the insurance policy is underwritten by an insurance company in Mexico but you get to deal with a US or Canadian based company in English. By law, foreign insurance companies operating in Mexico need to be partnered up with a Mexican firm to provide homeowners with a policy that they are familiar with yet which meets the standards of Mexican law.
Using a Mexican company to insure your property in Mexico
There is nothing wrong with using a Mexican company to insure your property in Mexico. May foreigners purchase home insurance directly from a Mexico insurance provider with success. What most of these people have in common, however, is a high standard of spoken and written Spanish. Your Spanish must be very good, and you must remember that all the insurance communication will be delivered to you in Spanish and your claims will need to be written in Spanish
You may want to think about the insurance services that are provided by U.S.A. specialists as they are ready to assist you with owning a home in a foreign country and the insurance for that home. You should think about if you have a claim as this is always a stressful time, but if your insurance policy is in English rather than Spanish, then you will be familiar with what events are covered and if you need to call the insurance provider for your insurance claim.
Also, the U.S.A. policies can provide you with added coverage, which can include third-party liability coverage, because most of the Mexico insurance providers and policies won’t cover these types of claims unless they have been added specifically along with any additional premiums.
Insuring your property in Mexico is a must and should never be taken lightly. Property owners in Mexico should have the property insurance that is needed for their property in Mexico. Depending upon your expectations and preferences with home insurance, you can select to purchase the insurance directly from an insurance provider in Mexico or from a U.S.A based insurance company.