Hardly anyone buys home insurance, but the fact that they don't does not make it right.
A fire, a water leak, an earthquake, a burglary or a customer's accident at your shop or office can happen in any home or business. The legal lease policy protects your lease; insurance protects the property, what is inside it and your liability toward others. Choose your case:
The owner's insurance covers the structure of the property, but not your furniture, clothing, equipment or valuables. In addition, the Mexico City Civil Code presumes the tenant is liable for a fire in the property they rent, unless they prove it was due to a fortuitous event, force majeure or a construction defect, or that the fire started elsewhere (articles 2435 et seq.). If that happens without insurance, the repair may come out of your pocket.
What you should insure:
Reference price: insuring contents worth $200,000 to $300,000 costs approximately $800 to $2,000 per year*.
*Approximate reference price. The final cost depends on the insurer, the insured amount, the coverage you choose and the characteristics of the property. If a tax invoice is required, VAT is added.
The information on this page is general and does not replace the advice of an insurance specialist. Coverage, exclusions and prices depend on each insurer and each policy.
The legal lease policy (póliza jurídica) is a specialized legal service for leases that protects both parties from before signing. It screens the prospective tenant (identity, income, credit bureau, legal history and references), drafts a tailored contract with its promissory notes and supports the relationship for the entire term. In case of default, a team of lawyers first negotiates out of court and, if necessary, takes the legal process through to recovering the property. It also protects the tenant: it confirms that the person leasing is the real owner or has the authority to do so. It is like legal insurance: nobody wants to use it, but when it is needed, it makes all the difference.
The legal lease policy protects the contract; home insurance protects the property, what is inside it and people in case of an accident. They are different things and they complement each other. If you rent, the law holds you liable for a fire in the property unless you prove it was not your fault, and the owner's insurance does not cover your belongings. If you are an owner, your insurance protects the structure and, if you lease furnished, your furniture. Hardly anyone buys home insurance, but the fact that they don't does not make it right.
To learn more: blog article in preparation.