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twelveoaks

Aug 2, 2011, 8:24 AM

Post #1 of 12 (2613 views)

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Do I Need a Home Owners Policy in Mexico ?

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I will be moving to Cuernavaca shortly. One question I have yet to be answered is regarding the need for a home owners policy. When looking in Ajijic I was told by numerous Americans and Canadians that a homeowners policy was not necessary because all construction is stone or concrete and cannot burn and as far as liability no one sues. I have also been told the same by Americans in Cuernavaca. My question is directed towards resident home owners in Mexico: Do you have a homeowners policy and if so, why ? Also, what does it cover ? I would really appreciate your opinions.

DavidHF

Aug 2, 2011, 9:55 AM

Post #2 of 12 (2585 views)

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Re: [twelveoaks] Do I Need a Home Owners Policy in Mexico ?

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I have a HO Policy which covers all the standard stuff including earthquakes and hyrological events (think flash-flood and landslide). Experience has taught me that theft coverage is useless in Mexico so I dropped that. If you have a substantial piece of your net work tied-up in a house I think it would be foolish to not have insurance.

bournemouth

Aug 2, 2011, 11:53 AM

Post #3 of 12 (2560 views)

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Re: [DavidHF] Do I Need a Home Owners Policy in Mexico ?

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Couldn't agree with you more. In addition the house may not burn but the contents certainly can.

twelveoaks

Aug 2, 2011, 12:12 PM

Post #4 of 12 (2556 views)

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Re: [DavidHF] Do I Need a Home Owners Policy in Mexico ?

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Hi, Thanks for the reply !

I hope you don't mind a few more questions. Does your policy cover fire ? Also, what about personal liability and to what amount. You had mentioned earthquake and flood/mudslide coverage. What are the deductibles ? Also, in the instance of an earthquake that causes wide spread damage would the company have the resources to pay ? I would be more interested in liability and fire than e'quake and flood in my area. Lastly could you provide me with the name of the company ?

Thanks !

jrpierce

Aug 2, 2011, 1:31 PM

Post #5 of 12 (2535 views)

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Re: [DavidHF] Do I Need a Home Owners Policy in Mexico ?

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I agree with you as well, David. We have fire, theft, liability, and earthquake coverages. We also have a separate coverage not needed in the US which is glass coverage (we have some very large windows).

12OAKS, I won't try to get into the details of levels, deductibles and costs as it varies by location, type of house construction, insurance company, etc. This is all easily obtained from an agent in your new location.

David, I fortunately have no first-hand experience with theft insurance here, however have understood it can be useful--especially in the case where one is away from the house and someone breaks in and cleans it out. While that doesn't happen often, I'd just as soon have protection against that.

As for the old notion that the insurance companies won't have the money to pay off in case of earthquake or flood, understand that you can insure with very large international companies like Axa (our insurer). I was involved in residential real estate in the US for many years, and I can tell you that most earthquake claims were not paid out for major, catastrophic temblors, but for more minor ones that did damage to a relative few homes, but in some cases very significant damage to those homes. After talking with lots of structural engineers about how earthquake damage can work, I became a believer in the coverage. Think about Loma Prieta and the Oakland quakes in California--the insurance companies didn't all fail and leave policy holders out in the cold.

So there's my two cents worth--hope it is helpful 12OAKS.

Jim

chicois8

Aug 2, 2011, 1:43 PM

Post #6 of 12 (2526 views)

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Re: [twelveoaks] Do I Need a Home Owners Policy in Mexico ?

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It seems most bomberos (firemen) provide rescue services 99 to 1 with fighting a house fire, about the only things that might burn in my casas
would be a mattress or curtains...I do not have insurance nor do I believe I need it.......

DavidHF

Aug 2, 2011, 4:32 PM

Post #7 of 12 (2503 views)

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Re: [chicois8] Do I Need a Home Owners Policy in Mexico ?

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12 Oaks, the company is AXA. As I said, I have all the coverage typical of a homeowners policy NOB, which includes fire, liability, etc.. Check with an agent in Cuernavaca for details. As for theft, unless you can prove with reciepts and pictures that you actually had all your stuff you'll never collect a peso. Theft coverage is a waste of money.

mazbook1

Aug 2, 2011, 4:46 PM

Post #8 of 12 (2497 views)

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Re: [chicois8] Do I Need a Home Owners Policy in Mexico ?

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I agree with you 100%.

(This post was edited by mazbook1 on Aug 2, 2011, 4:47 PM)

fordmexico

Aug 3, 2011, 6:41 AM

Post #9 of 12 (2437 views)

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Re: [twelveoaks] Do I Need a Home Owners Policy in Mexico ?

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Like the USA, you will need to have full insurance coverage if you are financing the purchase of your home. Like the USA, if you own your home, insurance coverage depends on your location, type of construction of your home and your willingness to self-insure. Our home is typical concrete/steel (new) construction built on solid bedrock near the crest of a hill. We should be fine in the case of an earthquake or long torrential rains. We decided to insure for the same reasons as jrpierce. We also have glass coverage and want to be covered in the case an earthquake does cause minor/major structural damage. There is also the possibility of internal problems with gas and water lines causing problems which would be very expensive to repair. We are insured by Zurich a major international insurer.
Each year we obtain quotes for coverage. Most of the major Mexican banks offer insurance and quotes can be easily obtained through their websites. We use these quotes as a basis for speaking with local agents. Our costs run about 50% less than our similar coverage did in Michigan (without earthquake/flood coverage in MI).

jrpierce

Aug 3, 2011, 8:15 PM

Post #10 of 12 (2351 views)

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Re: [DavidHF] Do I Need a Home Owners Policy in Mexico ?

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We've provided our AXA agent with photos of everything of value in the house, and receipts for most of it. In this digital age, it is pretty simple.

Jim

Poncho32

Aug 3, 2011, 9:39 PM

Post #11 of 12 (2339 views)

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Re: [chicois8] Do I Need a Home Owners Policy in Mexico ?

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In viewing all of the notes on this subject I would make this comment regardless of what type of construction you have and the location insurance coverage for water and smoke damage should be kept in yor over all coverage.
The clean up and repair of those two items alone will cost you a lot by even a small fire internallly .

Mexberry

Aug 4, 2011, 10:25 AM

Post #12 of 12 (2289 views)

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Re: [twelveoaks] Do I Need a Home Owners Policy in Mexico ?

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Our homeowners policy is through Mariners Insurance brokers in Puerto Vallarta. Suggest that you get a broker that you trust or is recommended and go with their suggestions. We were in Manzanillo a few years back in the Santiago Bay area where a hurricane had passed thru a couple of years earlier. This was before insurance was widely available. These magnificent homes were just sitting abandoned for lack of resources to repair them. Get insurance !!
Mexberry.