Condo Insurance in Mexico

Condo Insurance in Mexico

Owners of condominiums in Mexico have special risks that can bankrupt them. You need to understand why.

Personal Condo Insurance versus Condo Corporation Insurance

A condominium project is comprised of two legal ownership entities. You own your own personal condominium unit. AND you are one of the owners of the condominium corporation itself. All condo owners own a share of the condo development. Along with that corporation ownership comes all sorts of risks and responsibilities for the individual condo owner.

The condominium corporation, which is you and your fellow condo owners, owns the common areas and that includes the building structure that surrounds your unit, for example, it includes:

  • The roof including roofing and drainage.
  • Walls (not including your paint, your wallpaper or any non-bearing interior walls).
  • Floor (not including floor coverings such as carpet or tiles).
  • External walkways.
  • It also includes the swimming pool, the clubhouse, the parking lot, gates, fences and so on. You get the idea.

Commercial Condo Policy

Protects the condominium building itself, including common areas located both inside and outside of the condo building. Examples of such areas are shared hallways, entrance area, swimming pool, gym, elevators, roof, and so on.

It also protects against the condo corporation being sued by visitors or workers who are injured or killed in common areas… if a maid falls and breaks her leg in the parking lot, for example.

Risk: If someone were to drown in the swimming pool, imagine the risk if the family sued the condominium corporation for negligence…the condo corporation is you! If the Corporation has insufficient (or no) insurance, then you are personally on the hook, unless you have your own Condo Owners' Insurance.

Personal Condo Policy

Protects the individual condo unit owner against theft, fire, floods, including unit improvement and personal property. It also protects against lawsuits by workers or visitors who are injured or killed within your personal condo unit. Many unit owners don’t buy individual condo coverage because they mistakenly believe that they are covered under the commercial condo policy.

Risk: Owners of condominiums in Mexico have special risks that can bankrupt them. It is important to realize that the insurance policy purchased by a Condominium Corporation does not cover your own condo or its contents. That requires a Personal Condo Insurance Policy.

Understanding Personal Condo Insurance Policies

Understanding what the commercial condo policy covers, versus what your personal condo policy covers, is one of the most critical things that you need to understand as a unit owner.

  • Natural Disasters and Hurricanes

Many insurance policies in Mexico will not cover against these losses. However, TioCorp Insurance works with insurers which offer this coverage as an option.You also need to be aware that the Natural Disaster Insurance option is often suspended during certain times of the year, or following a disaster.  If you want this coverage, contact us now.

  • Upgrades

You are responsible for insuring any upgrades or improvements that have been made to your unit, including those during the original construction or by a previous owner. Upgrades or improvements include hardwood floors, new cabinets or counter tops, crown moulding, and wallcoverings.

You should know that some, if not most, condo corporations have bylaws making unit owners responsible for all flooring materials and countertops in their units, regardless of whether or not they were upgrades or improvement. They sometimes do this to get a cheaper rate for the corporation’s policy.

  • Contents

Any of your personal or specialty property inside your unit must be insured under your own Personal Condo Policy. This includes furniture, electronics, household goods, clothing, etc. Most policies will protect your contents against water damage, as well as other types of loss.

  • Third Party Liability

Should you, for example, forget to turn off the kitchen faucet and it causes water damage to unit owners beneath you, they can sue you for damages. This coverage also protects you if somebody gets injured while in your premises (e.g. slipping on a wet floor). Condo Owners' Insurance would include this type of liability protection.

  • Theft

Should any of your property be lost due to theft, most Condo Insurance policies would cover it. It is important to know that Mexico insurance companies will not pay for losses unless there is proof of a forced entry into your unit. Read more about Making a Claim.

  • Your Locker

Did you know that from an insurance perspective, your private locker is considered to be part of your insured premises? So, if something is stolen from it, you can rest assured that your personal condo policy will protect you. It is important though to mention that you should let your insurer know that you have a locker.

  • Special Insurance Assessments

There are a number of situations where commercial condo policies do not cover all damage. In these cases, the condo corporation can make assessments against individual unit owners. This most commonly occurs when a unit owner is responsible for the damage or if the loss originates from a single unit.

Condo corporations can also make assessments against unit owners if there is a shortfall in the commercial condo policy. These assessments can total $25,000 or more. As a unit owner, you can protect yourself against insurance-related assessment by having the right personal condo policy.

  • Additional Living Expenses

What would you do if you couldn’t live in your unit because it suffered damage and is undergoing insured repairs?

If you don’t have friends or family members to stay with, you could be out of pocket thousands of dollars for temporary accommodations. Your personal Owners' Condo Policy includes protection for additional living expenses, which includes the cost of temporary accommodation.

There are 3 types of Personal Condominium Insurance Policies. Read More….

  1. You live in a condo that you own.
  2. You rent a condo; That is, you are a tenant and the condo is not yours.
  3. You own a condo and rent it out to others.

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Telephone 376-766-4828 (Mexico)

1-888-712-7023 (Toll Free from USA and Canada)

or Email TioCorp Insurance

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