Comparing Mexico Home Owners Insurers

March 13th, 2014 by
Categories: Buying, Home/Condo Insurance

Considering the financial strength of insurers

Home in MexicoAn insurance policy is a promise from the insurer that, in exchange for the payment of the policy premium, they will provide monetary reimbursement for losses that are specified in the terms of the contract with the insured. However, if the insurer is not financially stable, there is a greater potential that they may not have sufficient funds to be able to pay out for claims when an emergency situation occurs. It is wise to learn and compare the financial ratings of any prospective insurers as part of your insurance purchasing decision making process. A.M. Best Company is recognized around the world as the leading authority for accessing the financial strength and overall performance of insurers. It may be to your advantage to only purchase from insurers that have secure financial strength ratings, and to avoid using insurers that have been deemed as financially vulnerable. It also might be a good idea to avoid purchasing a policy from any insurers that, along with the parent or topmost entity of their corporate structure, have no ratings at all.

What does each policy include, and what will cost you extra?

When shopping around for Mexico home/condominium owners insurance, it is important to consider each quoted policy carefully. Not all policies are alike, so it is wise to look at what coverage items are automatically included in the policy, and what coverage items will have to be added to the policy. As well, you may want to know how much additional premium you will have to pay to get the added coverage. Sometimes, as you are comparing quotes for insurance, there may be a quoted policy that initially appears to be the least expensive option, but then after adding back in all the necessary coverage items that had been strategically left out, it may become much more expensive.

Does the policy include coverage for vacation rentals?

Many U.S. and Canadian citizens have purchased vacation homes and condominiums in Mexico. Unfortunately, most people do not have the opportunity to stay at their vacation homes year round. Consequently, many will choose to occasionally rent out their vacation dwellings to others. If renting your home or condominium is something you would like to be able to do, be sure you are purchasing an insurance policy that will specifically provide coverage for the rental usage. Many Mexico home and condominium owners insurance policies will exclude coverage for any type of rental usage of the insured dwelling. Or, they may require that an additional endorsement be written to modify the policy, while charging an extra premium to add the coverage.

Are any important coverage items being left out?

Exclusions are a common part of every insurance policy. They specify which items or perils the insurer will not cover. When shopping for a policy exclusions should be carefully considered, as they can sometimes take away important coverage that an insured might actually be needing. Does your home in Mexico have a swimming pool, tennis court, or basketball court? If so, you'll want to be sure you are not purchasing a policy that excludes coverage. You'll also want to be careful when looking over your policy, as some insurers exclude coverage for things that are normally included in most home owners insurance policies. For example, if a policy excludes coverage for awnings, patios, sidewalks, and driveways, it may not be the best choice for most people. With each policy exclusion, the insurer purposefully reduces their obligation to provide financial reimbursement to the insured for certain losses.