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Home Insurance in Los Cabos

Home Insurance in Los Cabos

Like your property in the US or Canada, insuring your property in Mexico is essential and part of your financial planning. Properly covering your home and personal goods will mitigate your liabilities in unforeseen circumstances.

Mexican or US Based Property Insurer?

Policy wording and insurance coverage in Mexico differ from what you may be used to in other countries. Mexican insurance policies are typically more limited in coverage, often requiring higher deductibles. When you buy insurance from a Mexican broker, you will typically receive the following:

  • Coverages often differ from those offered in the US or Canada, which may have less coverage or limitations.
  • Policies are worded and offered in Spanish only.
  • Claims or disputes will be negotiated in Spanish only.
  • Premiums and claims are paid in Mexican Pesos.

Most ex-pats purchase from US-based companies that offer their clients more suitable and familiar policies. When you buy from a US-based insurer, you can expect the following:

  • Coverages have the same characteristics that you see in US and Canada-based policies.
  • Policies are worded and offered in English.
  • Claims and disputes are negotiated in English.
  • Premiums and claims are paid in US Dollars.

What coverage is available in Mexico?

When it comes to insuring your property in Mexico, you’ll want to consider a few different types of coverage:

  1. Homeowners insurance: This will cover damage to your property and any liability you may have as a property owner.
  2. Personal property insurance: This will cover the contents of your home, including furniture, electronics, and other personal belongings.

Other Policy Considerations

It is essential to note the policy’s “deductible,” which is the amount you’ll need to pay before your insurance coverage starts. Deductibles range from a few hundred to several thousand dollars, depending on the policy and the type of coverage you have. It’s important to factor in the deductible when considering the overall insurance cost.

Another thing to consider when insuring your property in Mexico is natural disasters. Mexico is prone to hurricanes, earthquakes, and other natural disasters, so it’s important to ensure your insurance policy includes coverage for these events.

In addition, be sure to read the fine print of any insurance policy you’re considering and ask questions if you’re unsure about anything. It’s better to clearly understand your coverage in the beginning than to be surprised by gaps in coverage when you need it most.

Finally, reviewing your insurance policy annually is an excellent way to ensure it meets your needs. As your property and circumstances change, you may need to adjust your coverage accordingly. Working with a trusted insurance broker can help you stay on top of any changes or updates to your policy.

Overall, insuring your property in Mexico is crucial to protecting your investment and mitigating your liabilities. By researching and working with a trusted insurance broker, you can find the right coverage to meet your needs and give you peace of mind.

How to find an Insurance Broker in Los Cabos

 What we do

We insure our home at the same levels of coverage that we would in Canada. We also maintain a deductible that aligns with what we expect to pay there.

We work with a US broker with offices in Cabo San Lucas and the US. The broker provides us annually with an electronic renewal notice where we can review the policy coverage and deductible before renewing. Once we have made any changes to the coverage that might be needed, we can make the premium payment using our credit card.

Concerning hurricane insurance, we have elected not to obtain coverage for our home. Coverage requirements include nationally certified hurricane shutters that are expensive to be installed on the home to qualify for coverage. Coverage liability limits can be less than the shutters’ costs, and the premium for coverage is costly. Also, certified hurricane shutters have a manufacturer warranty against damage incurred during an event, making additional insurance unnecessary.

In the case of our home, the cost of the shutters would far outweigh the damage our home would suffer in the event of a major hurricane. Every homeowner weighs the pros and cons of hurricane insurance based on personal circumstances such as cost, home location, and other factors.

Read more about moving to Cabo in our handy Los Cabos Relocation Guide 

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