If you're planning to own a home or condo in Mexico—or you already do—understanding how Mexican homeowners insurance works is essential. One of the most common questions we hear is:
Are fixed items part of the building or contents coverage in a Mexican homeowners insurance policy?
In Mexico, Building Insurance and Contents Insurance are two different parts of a homeowners policy.
Both protect your property, but each one covers different types of risks. Knowing the difference helps you make informed decisions, avoid gaps in protection, and ensure your investment is properly covered.
Whether your place is a beachfront villa or a condo in a vertical development, this guide will walk you through everything you need to know.
What is Covered Under the Building Section in the Mexican Homeowners Policy?
Building coverage includes everything that is structural or permanently attached to your home:
NOTE: If it cannot be easily moved with tools, it is generally considered part of the building coverage.
The building section can protect your home for damages caused by events like fire, lightning, explosion, hydrometeorological phenomena (which is for hurricane, stormy wind, flood by river, etc.) and earthquake and volcanic eruption. Any other risk (that’s where we can claim damages caused by a broken pipe that floods your condo and directly affects your building), and the general liability for damages that your unit may cause to third parties.
Certain coverage can be removed or added depending on your specific needs.
How Is the Building Sum Insured Determined?
Property owners in Mexico typically choose between three valuation methods:
Insurance companies in Mexico do not perform this valuation for you; it must be provided by the homeowner.
Market Value is especially relevant for condo units. In many buildings, the homeowners’ administration board carries a master policy covering the structure. However, some do not.
If the building suffers significant structural damage and no master policy exists, the condo board may choose not to rebuild, as reconstruction would require major contributions from all owners. This could leave your condo unit unrepaired or unrebuildable.
By insuring your unit at Market Value, you would be able to purchase a similar unit in the same area in the event of total loss—a crucial benefit for condo owners.
What Is Covered Under Contents?
Contents coverage applies to everything inside your home that can be lifted, moved, or detached, including:
The contents section also offers coverage for damages caused by events like fire, lightning, explosion, hydrometeorological phenomena (which is for hurricane, stormy wind, flood by river, etc.) and earthquake and volcanic eruption. Any other risk (that’s where we can claim damages caused by a broken pipe that floods your condo and directly affects your building).
You can also have additional coverages like: Burglary, electronic equipment for damages caused by a power surge, among others.
High-Value Items
Jewelry, art, collectibles, and hard-to-replace items are covered only with documentation and are subject to sub-limits. Inventories and appraisals are mandatory.
This may include:
Jewelry
Artwork
Antiques
Collectibles
Cash and securities
Fine China dinnerware
Why a home inventory matters when protecting your belongings.
As a homeowner, you likely have valuable belongings you want to protect. Having the right insurance coverage is essential in case of loss or damage. Keeping an up-to-date inventory of your belongings helps ensure you’re properly insured and can help avoid delays or confusion if you ever need to file a claim.
We recommend creating an updated inventory of your belongings, including:
Keeping a simple, up-to-date inventory of your belongings makes it easier to ensure you’re properly covered and helps avoid delays or confusion if you ever need to file a claim.
Renting Your Property in Mexico? Short-Term Rentals Need Extra Coverage
If you rent your property through Airbnb, VRBO, or privately, you need Liability for Vacation Rentals, which covers:
This protection is not automatically included, so it’s crucial to add it in case you plan to rent the property and cover the accidents that your guest may suffer while being inside your unit.
Does the HOA Master Policy Cover My Condo in Mexico?
Not necessarily.
Master policies typically cover:
They do not cover:
If your building does not carry a master policy—or coverage is insufficient—you can purchase a Mexican condo insurance policy that covers the unit at commercial value, allowing you to replace it with a similar unit in the same area in case of total loss.
How to Choose the Right Homeowners Insurance in Mexico
Protect Your Home in Mexico with Novamar
Novamar Insurance Mexico is a Class-C licensed insurance broker, specializing in tailored solutions for villas, condos, and rental properties throughout Mexico.
Our Mexican homeowners insurance policy complies with CNSF regulations (Mexico’s Department of Insurance) and meets local legal requirements.
Our bilingual experts can:
You can quote your policy online in minutes by clicking here.
What We Need for an Accurate Quote:
