Types Of Mexican Home Insurances
Usually, the cost of your insurance premiums will depend on many factors like the size, value, location and age of your house, the properties and items covered and the extent of coverage you want.
In general, based on the coverage you subscribe to, Mexican home insurances can be classified as
All Risks
All Risks insurances provide coverage to a comprehensive list of incidents and damages that relate to your home. For instance, everything from coverage due to damage done by natural disasters to burglary coverage may be provided within an all risks insurance. You can go through the list of coverage provided and choose the insurance package you want.
Named Perils
Named Perils insurance allows you to name the high-risk incidents and situations that you would want to be covered for. You will have to explicitly specify these incidents and the insurance will provide coverage only for the specified cases.
While a named perils policy is rather less expensive than the All risks policies, it is riskier as you won’t get any payouts for any other damages other than what you have previously specified as named peril in your policy.
So, take time to understand the differences between the two types and choose the one which offers you optimal coverage at an affordable cost.
Other Coverage
Here are some more factors you can consider while opting for insurance. See if the following coverage is provided as these might come in handy in your hour of need.
Structural Insurance
While most insurances by default provide coverage for the key structure of your home, it would be extra nice if you can add coverage to your auxiliary structures like carports, guest houses and garages. Many Mexican homes have these additional structures that are not necessarily part of the main building and are considered as separate buildings. Another factor that may raise the premium costs is the materials used in the structure as high-risk structures made of wood are more susceptible to damage.
Personal Items
Personal property items can include your own personal artifacts as well as that of your guests and domestic employees. Most policies will be able to provide coverage for personal properties to an extent. You can also add special coverage to valuable items like antique furniture, jewelry,fine art pieces and even cash money upto a certain limit. Do look for theft coverage options as well.
Third-Party Liability
Liability coverage can cover legal costs related to your property. For instance, it can help cover any legal disputes with neighbors regarding broken trees, property damage leading to accidents and personal injury, and so on.
Loss Of Rental Income
Most homes are bought under a mortgage and depending on the rental income to make the money repayments. In these cases, a loss of rental income or use of the property may cause severe loss and backlogs on mortgage repayments. You can avoid incurring such losses by choosing to cover lost rental income via certain insurance policies.
While these extra options may come at an expensive price, they are worth it considering the risks they help manage. Consider the risks and associated costs, conduct a cost-benefit analysis, and reach the right decision in choosing the best Mexican home insurance policy you want.
