Mexican homeowners insurance includes two main coverages: building and contents. Building insurance covers the structure and fixed elements such as walls, roofs, and built-in fixtures, while contents insurance protects movable personal belongings like furniture, electronics, and appliances. Understanding the difference helps homeowners avoid coverage gaps and insure their property correctly in Mexico.
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: Bulgary, 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:
How to Protect Your Belongings Properly
We recommend creating an updated inventory of your belongings, including:
This evidence is extremely valuable for proving pre-existence during 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. Request a quote here.
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 and issue your Mexican Homeowners policy in minutes here!
What We Need for an Accurate Quote:
