Home insurance: what is it and why is it so important?

Mexico has had a growing momentum with the digital renewal of a relevant economic sector. This sector meets the needs of the inhabitants and tourists who want to visit wonderful places in the interior of the republic such as Guadalajara, Querétaro or Mexico City.

This is the real estate sector, which is bearing more and more fruit with the arrival of new companies in the country.

However, people who have managed to benefit from some real estate investment have suddenly been presented with the need to protect their properties against unforeseen disasters.

In this sense, home insurance becomes the protagonist of protecting your home. A complement that should not be disdained. In this article we will tell you what you should do to take care of your heritage.

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We tell you everything about home insurance

To be prepared against disasters and losses is to have an advantage over them. This is called forecasting. If, in addition to investing in a property, you invest in insurance that protects it, you can responsibly get rid of risks and concerns.

According to data provided by the Mexican Association of Insurance Institutions (AMIS), they indicate that only 8.6% of homes in Mexico in 2017 were insured. This indicates that this plan should be encouraged to generate a culture of prevention against property risks.

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So if you are someone who needs home insurance after your commitment to new real estate developments in Guadalajara, you should know exactly what they are, what their types are, their benefits and their cost so that you know how to choose it.

What is home insurance?

When we talk about home insurance, we refer to the preparation of a contract through an insurance entity, in order to protect your room against any unforeseen event that may partially or totally damage it, causing material losses.

As an owner, you should know that the insurance you take out offers you coverage according to its type and its specifications: accident, natural disasters, floods or even theft and involuntary damage, such as glass breakage. As is done in mortgage credit, to obtain a home insurance quote there are electronic tools such as the digital loan simulator that helps you do so.

What types of home insurance are there?

The types of insurance with which you can protect your home respond to various contents:

Insurance: This type is related to the protection of the goods you have inside your home: furniture, appliances, tools, art, etc. It can include damage repair service and is usually the least expensive type of insurance. The protection can cover theft, earthquakes, external events.

Multi-risk insurance: As for its multi-risk protection, it has basic protection coverage (fire, lightning, explosion, meteorological phenomena, acts of vandalism, etc.), water damage or uninhabitability. In addition, it offers family civil liability, legal defense and assistance at home (with computer assistance).

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All risk insurance: It is the most complete policy. It covers everything that can happen to your property and even loss.

What are the requirements to contract this insurance?

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In general, in order to access the benefits offered by a home insurance policy, you will need these conditions:

  • The house must be for private use.
  • The construction of the property must be of the solid type.
  • The value of the property must be less than or equal to $2,500,000 mn, and for Premier clients, the limit is $6,400,000 mn
  • The house or domicile cannot be more than 30 years old. If it was completely remodeled, it may be accepted up to a maximum of 40 years.

How much does home insurance cost in Mexico?

Home insurance can have a cost, according to a general estimation rule, between 1% and 3% of the value of the property. But there really are various costs that depend on the location of the property, the bank you hire and the possessions you want to protect.

The quote agents will be able to guide you as to what you must contribute to make your home insurance effective. However, we share information about some banking institutions and the prices of their services.

BBVA:

  • 1 million pesos = $977.50.
  • 3 million pesos = $1,458.25.
  • 5 million pesos = $4,527.45.

MAPFRE:

  • 1 million pesos = $910.45.
  • 3 million pesos = $1,458.25.
  • 5 million pesos = $4,437.00.

AXA:

  • 1 million pesos = $643.78.
  • 3 million pesos = $1,305.26.
  • 5 million pesos = $4,729.58.

Three scenarios in which it is advisable to have home insurance

We will talk about three scenarios that merit having the foresight to buy home insurance, no matter how minimal the risks may be.

Do you remember the 85 earthquake? Well, those events happen. The earth is always in motion, which weakens certain areas of the property and generates cracks, subsidence, unevenness, fracture of pipes and others.

The risks do not only come from nature, electrical storms, falling trees or fires, they can also be related to social factors, aggression or one or another disturbance.

Likewise, there are thefts, with which we can lose many of our assets and find damage to our heritage.

Why have home insurance when buying and renting your property?

There are reasons why it is necessary to obtain home insurance when purchasing a property, and even more so if you later want to rent it. You will be protected against everything.

If not, at least with cross-responsibility coverage, your tenant will be able, for example, to cover the expenses for any damage caused to your family’s property, and you will be able to cover the damage to the property of the renter with your insurance.

But another reasonable possibility is, if you are the tenant, to insure your possessions: art, appliances, furniture or valuables. You do not have the obligation to insure the apartment or house if it is not your property.

Invest in real estate with the support of experts

Investing in real estate is always a business possibility. You can, for example, buy a home with financing and then rent it. In this way, you can make the house pay for itself, it will always be your property.

However, the best thing to do to carry out these operations is to consult real estate experts. In Mexico, there are very good ones with a wide range of services.

The real estate house and land offers services to find new housing offers. For its part, Nestoria has a digital platform that makes it easy to find apartments and houses.

Likewise, there are platforms that put you in immediate communication with your real estate agent via whatsapp, help you access cars and trucks or facilitate the process and paperwork for the acquisition of your property.

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