Every hurricane season, (and this one has been eventful), we face the same question: what happens to my property if a hurricane or an earthquake hits? And if the property is part of a condominium regime, behind that question there is another that almost no one says out loud: is the building insured?

It is worth talking about this calmly, without alarm. The goal is not to scare anyone, but to give a general picture of something that, in an area like ours, should be a basic part of owning any property: insurance.

We Live in a Hurricane and Earthquake Zone

Banderas Bay, which stretches from Punta de Mita, in Nayarit, to Cabo Corrientes, in Jalisco, lies in an area exposed to natural hazards. On one side is the Pacific Ocean, a stretch of sea where ocean and atmospheric conditions favor the formation of hurricanes. On the other is the "Rivera" plate, which lies right off this coast.

This season, several systems have passed off our coast, including Polo and Rachel, and the heavy surf damaged areas such as the Malecón boardwalk and the hotel zone. Not every hurricane has to make landfall to leave its mark. Sometimes the damage arrives from the sea.

The most remembered hurricane in Puerto Vallarta is Kenna, in October 2002. It made landfall in Nayarit, near San Blas, and in Puerto Vallarta the damage came mostly from the heavy surf, which destroyed sections of the Malecón and flooded businesses along the waterfront.

Earthquakes are also part of the picture. Specialists explain it this way: the "Rivera" plate slides beneath the Jalisco block off our coast, and that produces earthquakes from time to time.

The best known is the one on October 9, 1995, with its epicenter between Colima and Jalisco. According to local accounts, houses and hotels in Puerto Vallarta were damaged and one hotel had to be demolished. Fortunately, there were no deaths in the city.

More recently, the earthquake of September 19, 2022, with its epicenter in Michoacán, was also felt strongly here. According to local media reports, it damaged facades, glass, and ceiling panels in several hotels and condominiums, and no injuries were reported. Authorities said the damage was mainly non-structural, although reports differ on whether any building suffered structural damage.

This is not limited to a single case, an exclusive area, or one particular apartment complex. It is part of living on Mexico's Pacific coast, which is one of the reasons it is so beautiful and, at the same time, an area where it pays to be prepared.

The Building's Insurance Is Not the Same as Yours

A simple way to think about it: the condominium's insurance, when there is one, is like a big umbrella that covers the building you share with your neighbors. Your own insurance is your personal umbrella, for what is yours. You may need both, and neither fully replaces the other.

What Does the Law Say?

The condominium regime is regulated at the state level, so it varies depending on where the building is located.

In Nayarit, which includes places like San Pancho, Sayulita, Bucerías, and Nuevo Vallarta, the state law on the condominium property regime provides that the deed establishing the regime must include the obligation of the condominium owners to take out an insurance policy with an authorized insurance company, covering risks such as earthquake, flood, explosion, and fire, as well as damage to third parties (Article 10, section X).

In Jalisco, the Civil Code does not expressly establish an obligation to take out insurance for the building. What it does regulate, in Article 1034, is what happens if the building is destroyed. That article contains more detailed provisions but, put simply: although the law does not require insurance, it makes clear that the condominium owners share responsibility for reconstruction. Insurance is a practical way to keep that cost from landing all at once on each owner.

What we see in practice is that not every building keeps a policy in force. One of the reasons is to keep the maintenance fee low. It is a decision that seems to save money today, but one worth knowing about before you buy.

Questions to Ask Before You Buy

Ask your agent to get written answers from the seller on these points:

  • Does the building have a policy?

  • What risks does it cover: hurricane, flood, earthquake?

  • What does it include and exclude for the interior of your unit?

If the answer is that there is no policy, that does not stop you from buying. It means it is something to factor in your own protection plan.

Our Recommendation: Your Own Insurance Policy

Even if the building has a policy, it makes sense to take out your own independent policy for your unit, including hurricane coverage. Talk to a trusted insurance agent and ask them to explain clearly what it covers, what it excludes, and what the deductible is.

And since earthquakes give no warning, it is worth asking explicitly whether both policies, the building's and yours, also cover them.

In Short

Buying on the coast is still a good decision for many people. It simply requires understanding that the sea and the land are also part of the picture, and that insurance is a basic part of being an owner here.

This article is for informational purposes and does not replace legal or insurance advice.

If you are thinking about buying and would like to talk through your particular situation, write to us. We are glad to guide you, with no pressure at all.