Home Insurance in Cabo

Many homeowners in Mexico don’t purchase home insurance. Home insurance in Cabo (or anywhere in Mexico) is not legally required. However, properly covering your home and personal goods may reduce costs for damages, repairs, and replacement if unforeseen circumstances occur. Read on to learn more about home insurance in Cabo.

If you are interested in buying property in Cabo and have questions about home insurance or need any other information, contact realtor Jeff Schmidt today.

Reasons to Buy Home Insurance in Mexico

Financial Investment Protection

Whether it’s your primary residence, vacation home, or rental property, insuring your home protects your investment from unexpected events.

Liability Coverage

If someone is injured on your property, liability insurance can help cover medical expenses and legal fees, protecting you from potential lawsuits. While injury lawsuits aren’t as common in Mexico, this added protection can bring homeowners, especially those renting out their homes, some added peace of mind.

Theft and Vandalism

Even in safe areas, theft can occur. Home insurance can cover stolen or damaged personal belongings.

Required for Financing

If you’re financing your property through a bank, especially a Mexican lender, insurance may be a requirement.

Protection Against Natural Disasters

Cabo San Lucas is prone to hurricanes, tropical storms, and flooding. Home insurance can cover damage from these events, which can be costly to repair out of pocket. However, this type of insurance may come with restrictions, requirements, and higher costs. We’ll discuss this in more detail below.

Do I Need Insurance for My Condo?

If you own a condo, check with your homeowners’ association to find out if the development has insurance for the area and the buildings. Get all of the details you can about what the coverage includes to make sure you are properly covered and don’t need an additional insurance policy.

Mexican vs. US Based Home Insurance

Mexican insurance policies often offer more limited coverage and come with higher deductibles. The policies are in Spanish, and any claims or disputes are handled in Spanish. In addition, payments such as premiums, deductibles, and claims are paid in Mexican pesos.

Many Americans and Canadians prefer to purchase home insurance from US-based companies that offer the coverage they expect. The policies are in English, and any claims or disputes are handled in English. In addition, payments such as premiums, deductibles, and claims are paid in US dollars.

Home Insurance Costs

Premiums

This is the amount you pay to an insurance company, typically on a monthly, quarterly, or annual basis, to maintain your home insurance policy. Several factors can affect the cost of your premium, including the property value, location of your home, coverage amount, and deductible.

Deductibles

This is the amount you must pay out of pocket to obtain insurance coverage in the event of damage to your home or its contents. Deductibles can range from a few hundred to several thousand dollars, depending on the policy and type of coverage. When evaluating the total cost of insurance, it’s important to factor in the deductible.

What Type of Coverage Should Be Included?

• Homeowners Insurance: This provides coverage for damage to your property as well as any liability you may incur as a property owner.
• Personal Property Insurance: This protects the contents of your home, including furniture, electronics, and other personal items.

Hurricanes and Natural Disasters

Hurricanes, earthquakes, and other natural disasters can occur in Cabo, so it’s important to consider coverage for these events. Note that insurers may require nationally certified hurricane shutters, which can be expensive to install. Check to see if the liability limits for coverage are lower than the cost of the shutters, and consider whether the cost of the premium has increased significantly. Often, certified hurricane shutters come with a manufacturer warranty that covers damage from events; this could make extra insurance unnecessary.

For many homeowners in Cabo, they prefer to install quality hurricane shutters to protect their home in the event of a hurricane or tropical storm rather than add additional insurance coverage, which often comes with higher deductibles and premiums, for these events.

Contact Jeff Schmidt to Request a Showing

Jeff can set up your virtual or in-person showing at your convenience. He is also always available to answer questions about home insurance in Cabo via email, a phone call, or text. When you work with Jeff, you benefit from an agent that has:

• More than a decade of real estate experience
• Personally bought, sold, and built homes in Cabo
• Lived in Cabo for several years
• Been featured on several episodes of House Hunters International and Mexico Life on HGTV

(408) 607-8349 (U.S.)
(624) 165-9553 (Mex)
jeff@cabobeachrealty.com