1. What is Mexican homeowners insurance?
Mexican homeowners insurance works in a similar fashion to homeowners insurance in the U.S. Generally, a basic policy will afford you financial protection in case of damage to your home and belongings and liability coverage in case someone is injured on your property or if you cause damages to someone else's property. The policy is sold as a package with options for additional coverage such as earthquake/volcanic eruption coverage, hydro risk and flooding coverage, extraordinary expenses, glazing (glass coverage), home robbery, and coverage for household appliances.
2. Why do I need Mexican homeowners insurance?
If you are like many homeowners, you have worked hard towards having a financially secure future. Owning and/or investing in property may be part of your strategy. Homeowners insurance will help protect your investments should damage occur. In addition, many lenders will require you to have Mexican homeowners insurance in order to let you borrow money.
3. What is included in a basic Mexican homeowners policy?
A basic Mexican homeowners policy will cover the following in case of a covered incident:
Loss to the Structure of Your Home
This coverage will afford protection to help you repair or rebuild in case of damage to the structure of your home by any of the covered incidents such as fire, hurricane, lightning, etc. It will only cover earthquake/volcanic eruption or flooding if specifically stated on the policy. The water supply, sewage, lighting facilities and building fixtures are included in the coverage. The land and buried foundations are not included.
Loss of Personal Belongings
This coverage will afford protection to help you replace your personal belongings such as clothes, furniture, and other personal items in case of a covered incident. It will only cover earthquake/volcanic eruption or flooding if specifically stated on the policy. It is important to do an inventory of all your personal belongings. Most people don’t realize just how much they own! To make the task easier, you may like to use home inventory software like the free download version from Know Your Stuff. Coverage for expensive items, art, and jewelry is available, but they must be listed on the policy.
This coverage will protect you should someone injure themselves while on your property or should you cause injury to someone or damage their belongings. It will also cover damages your pets may cause. The policy covers you in the entire Republic of Mexico should you take a trip for vacation purposes. Legal assistance is covered which includes legal defense, bond payments, and payment of legal expenses if necessary. There is no deductible applicable to this coverage.
HDI’s Home Assistance
The home assistance and emergency services features of the policy are available 24 hours a day, 365 days a year and bilingual representatives are available. They can assist you with finding contractors to give you a quote for a repair or remodel for non-emergency situations. They can also assist in case of an emergency situation that requires immediate repair if people or personal belongings are endangered.
4. Is earthquake coverage available?
Earthquake coverage is available, but not automatically included. It may be added to the policy for an additional premium. Coverage is available for up to 80% of the insured value of the structure and up to 80% of the insured value of personal belongings. There is a deductible applied to this coverage which will be stated on the policy.
5. Are hydro risks and flooding covered on my homeowners policy?
Hydro risk coverage is available, but not automatically included. There is an additional premium if you wish to add it to your policy. Hydro risks coverage is available for up to 90% of the value of the structure and 90% of the value of the contents except for flood coverage which is available for up to 80% of the insured value of the structure and up to 80% of the insured value of the contents. There is a deductible applied to this coverage which is stated on the policy.
6. What optional additions to the coverage are offered?
There are optional additions to the coverage that are important to consider when purchasing Mexican homeowners insurance. They include:
Extraordinary Expenses and Removal of Rubble
Extraordinary expenses cover the additional expenses of not being able to live in your home. These may include rental expenses, food expenses, and moving expenses. Removal of rubble coverage includes the expense of dismantling and hauling rubble in order to repair damage. These coverages are important to add to a basic policy. The coverage amount available is 10% of the value of your home structure for extraordinary expenses and 10% for removal of rubble.
Glass Coverage (Glazing)
This coverage includes expenses incurred by the accidental breakage of glass, skylights, mirrors, glass tops, shelves, decorated and leaded glass, and cabinets installed in the home. It also covers in case of acts of vandalism. Glass covered in the policy must be at least 4mm thick to be eligible.
Home robbery coverage includes furniture, clothes, personal items, books, decorations, sports items, televisions, electronics, and other contents. Expensive items like jewelry, collections, and paintings can also be insured but must be listed on the policy. Robbery in public is also covered.
This coverage includes damage to household appliances due to the action of electric power in situations such as short circuits or voltage spikes or if the appliance explodes. There is a deductible on this coverage which will be stated on the front of the policy.
7. Should I take an inventory of my home?
Yes, it is best to do a home inventory. The problem with estimating the value is that most people own more than they realize and are surprised on paper to see how much they have. An inventory will help quantify your belongings not only for yourself, but for the insurance company should there be a loss. It is recommended to take photos or video of your belongings too. A great resource for free downloadable home inventory software is Know Your Stuff. The software also allows you to upload photos. No matter how you complete your inventory, when it is done, it is recommended to keep a copy in a safe place outside your home like in a safe deposit box and to update it as you acquire new personal property or if there have been any changes.
8. Is the homeowners coverage issued in dollars or pesos?
All policies are issued in U.S. dollars.
9. Do I need a Mexican visa to be eligible for homeowners insurance?
Yes. In order to qualify for homeowners insurance, you need to have either a valid FM-2 or an FM-3. As a homeowner in Mexico, you may already have the proper visa. If not, it is important to get a visa that reflects your legal status in Mexico for your own protection. It is simple to obtain a visa from immigration authorities in Mexico or from a local Mexican consulate in the U.S.
10. What are the steps to get a homeowners policy?
In order to begin a quote and purchase a policy:
11. Is homeowners coverage available to buy online?
Homeowners coverage is not available to buy online, however you may fill out an online application. We will then be able to give you a quote, answer any questions you may have and begin your policy. Begin application.
12. How will I receive my homeowners policy?
Once the policy is completed, we can send it to you as a pdf (Adobe Acrobat) email attachment, by fax or send it through traditional mail.
13. What forms of payment are accepted?
14. If I need to cancel my policy, what is the refund policy?
The refund will depend upon how long your policy has been in effect. If you have specific questions about the refund policy, please call us 888.552.2252.