Mexico home insurance coverage remains low despite natural disaster risks

Only 25.8% of homes in Mexico are covered by any form of insurance, according to data from the Mexican Association of Insurance Institutions (AMIS). Of those insured, only about 7% represent voluntary policies purchased directly by homeowners, while the majority of coverage is tied to mortgage requirements.

This low level of protection contrasts with the country's high exposure to natural disasters. Data indicates that 66% of Mexican entities face high or very high risk of flooding, 34% are exposed to earthquakes, and 31% face droughts. Despite the historical impact of major earthquakes in 1985 and 2017, insurance penetration remains low in high-risk areas like Mexico City, where only 17.4% of homes are insured.

Regional disparities are significant. While Nuevo León shows an insurance penetration rate of 70.2%, states such as Oaxaca (6.5%), Chiapas (8%), and Guerrero (11.6%) report much lower levels of coverage.