Understanding the Importance of Hydro-Meteorological Risk Insurance
As the rainy season approaches in many parts of the country, lasting from May to November, Mexicans face various weather events such as storms, hail, floods, and hurricanes. These events can cause damage to homes and vehicles, ranging from broken windows due to hail to total loss from flooding. Such damages pose a threat to one’s assets and can lead to significant economic problems.
What is Hydro-Meteorological Risk Insurance?
Hydro-Meteorological Risk Insurance is an additional coverage for homeowner’s insurance that protects against damages caused by weather events like rain, storms, cyclones, hail, frost, snow, high tides, and strong winds. This coverage can help with direct damages caused by water or wind to your home, as well as indirect risks during weather events, such as fallen trees or flying debris.
Carlos Peña, President of the Damage Committee at the Mexican Association of Insurance and Surety Brokers (AMASFAC), explains:
“This insurance can cover detached roofing, damage to facades, or appliances and household items rendered useless by flooding.”
Who Benefits from This Coverage?
According to the National Commission for the Protection and Defense of Financial Users (CONDUSEF), property owners near coastlines, rivers, or frequently flooded areas benefit the most from this coverage. However, it is advisable to insure any property against these phenomena.
Carlos Peña, President of the Damage Committee at AMASFAC, advises:
“If you have this coverage and your home suffers damage, contact your insurer immediately to assess the damages and start the compensation process.”
Cost of Hydro-Meteorological Risk Coverage
The cost of this coverage depends on risk factors and the desired sum insured. For hydro-meteorological risks, these factors include proximity to water bodies, annual historical rainfall or other weather events, and the quality of the structure.
- Example: GMX Seguros provides a quote for a home in Del Valle, southern Mexico City, with a sum insured of 2,200,000 pesos and 495,000 pesos for homeowner contents. The annual cost is 13,617 pesos.
- Comparison: The same coverage for a property in Acapulco would cost 20,131 pesos annually, a difference of approximately 47% compared to Mexico City.
Keep in mind that deductible costs apply in case of a claim; for hydro-meteorological events, it is 2% of the sum insured. Various insurers, such as GNP, Seguros Atlas, or Banorte, offer this type of policy.
Additional Recommendations
Besides having homeowner’s insurance, experts recommend maintaining sensitive areas of your home in good condition, such as finishes, waterproofing, and windows.
Protección Civil advises:
“In case of hydro-meteorological events like cyclones, tornadoes, or floods, seek safe shelter to avoid irreparable losses.”
