Best cheap homeowners insurance in Albuquerque

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In Albuquerque, the average homeowner pays $1,513 annually for homeowners insurance coverage on a $250,000 dwelling. With about 58% of residents owning a home, finding affordable options for home insurance coverage is a priority for many.

Bankrate’s insurance editorial team evaluated the insurance carriers in Albuquerque by reviewing several aspects of each company. If you are shopping for home insurance in Albuquerque, understanding the options you have when it comes to companies, coverages and discounts may help you make a more informed decision.

Best cheap home insurance companies in Albuquerque

We reviewed the insurance companies in Albuquerque based on average annual premiums obtained from Quadrant Information Services, third-party customer service and financial strength ratings, available coverages and discount options.

If you are in the market for the best cheap home insurance in Albuquerque, you might consider getting quotes from the following companies:

Home insurance company Average annual premium for $250K dwelling J.D. Power score
Allstate $1,084 829 / 1,000
State Farm $1,184 829 / 1,000
Travelers $1,721 803 / 1,000
Farmers $2,064 814 / 1,000

Allstate

Allstate is one of the most well-known names in the insurance industry. Not only does the company boast the lowest average premium on our list, but it also offers many optional coverages. These endorsement options include identity theft restoration, water backup, scheduled personal property, business property, sports equipment, musical instrument coverage, electronic data recovery, yard and garden equipment coverage and green improvement reimbursement.

Allstate also makes its coverage even more cost-effective by offering plenty of discounts. Homeowners insurance discounts include multi-policy, responsible payment, claim-free, welcome and loyalty, protective devices and early signing.

State Farm

State Farm is the largest home insurance company in the county, with over 17% of the market share. Along with standard home insurance coverages, you may have the option to add extra coverage for jewelry, collectibles, cameras, musical instruments, sports equipment, tools and more.

State Farm does not offer as many discounts as Allstate, but you may be able to save by insuring more than one policy, having a home alert system or updating your roof. State Farm also offers banking products, so if you like the idea of consolidating several products in one place, State Farm might be a good option.

Travelers

Travelers’ average premium is about $200 higher than the city’s average. However, the company offers coverage options that could make up for the higher price. You may have the option to add endorsements like special personal property coverage, contents replacement cost, jewelry and valuable items coverage and green home coverage.

Despite the higher-than-average annual premium, Travelers does offer its customers plenty of savings opportunities. Available discounts include multi-policy, new homebuyer, loss-free, protective devices and green home.

Farmers

Farmers has the highest average home premium of the companies reviewed. Farmers sells its home insurance in three levels: standard, enhanced and premier. In addition to the coverages included in these levels, you could add options like declining deductible and claim forgiveness.

Although its premium is higher than the other carriers on our list, Farmers does offer several discounts that could help you bring your price down.There are discounts for home security systems, non-smokers and insuring multiple policies.

Home insurance coverage options in Albuquerque

While homeowners insurance is not legally required in New Mexico, your mortgage lender will likely require you to obtain a policy. Everyone has different needs, but there are some coverages you may want to consider if you live in Albuquerque:

  • Contents replacement cost: This coverage is designed to cover the full replacement cost of your belongings, rather than accounting for depreciation.
  • Identity theft protection: If your identity is stolen, this coverage is designed to help pay for the costs associated with restoring it.
  • Water backup: Severe storms are common in New Mexico. If, during heavy rains, your sump pump fails to keep water out of your basement or crawlspace, water backup coverage may help pay for the damages. It could also help if water backs up from any other drain line.
  • Roof replacement cost: Strong storms can also cause damage to roofs by way of wind and hail. If you qualify for replacement cost coverage on your roof, it may be a helpful endorsement.

If you are not sure where to start when it comes to selecting home insurance coverages, talking to an agent may be helpful.

Home insurance discounts in Albuquerque

The average cost of home insurance in Albuquerque is $1,513 per year, whereas New Mexico homeowners as a whole pay an average of $2,024 annually. Albuquerque homeowners pay less on average than they would in other areas of the state, but many homeowners insurance companies offer additional savings by providing discounts. Some common discounts in Albuquerque are:

  • Multi-policy discount: If you buy your home insurance from the same company as you purchase an auto insurance policy, you might save on both. Some companies offer this discount for other insurance products too, like boat, life and pet insurance.
  • Claim-free discount: If you have never filed a claim on your home insurance, you may qualify for a discount.
  • Home security discount: Having a home security system, which could include cameras, alarms, sprinklers or motion detectors, could help you save on your home insurance.

In addition to these common discounts, you could consider increasing their deductible to save money. A higher deductible often results in a lower premium, but be sure to choose a level you can afford to pay if you have to file a claim.

Frequently asked questions

What is the best home insurance company?

Home insurance is not one-size-fits-all, so the best home insurance company varies from person to person. It may be helpful to shop around with several companies to explore available coverages, features and discounts.

How much does home insurance in Albuquerque cost?

The average annual cost of home insurance in Albuquerque for a $250,000 dwelling is $1,513. However, policyholders may be able to secure lower rates by shopping around for more affordable providers and taking advantage of available discounts.

How much home insurance do I need in Albuquerque?

Unlike car insurance, there is no state-mandated home insurance coverage level. Many insurance professionals recommend that you have enough coverage to cover the rebuilding value of your home. Working with an agent or licensed insurance professional could help you to determine how much coverage you need.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $250,000
  • Coverage B, Other Structures: $25,000
  • Coverage C, Personal Property: $125,000
  • Coverage D, Loss of Use: $50,000
  • Coverage E, Liability: $300,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes may be different.

Written by
Carly Severino
Insurance Contributor
Carly Severino has two years of experience in writing for insurance domains such as Bankrate.com, Coverage.com, Reviews.com and TheSimpleDollar.com. She has experience covering a broad range of insurance products, including homeowners, life, auto, and medical insurance. Her expertise has also been called upon in the development of various websites for insurance companies, including Birtwhistle & Livingston, Inc., GovTech Insurance and Tax Title Services.
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