Best Homeowners Insurance in New Mexico

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New Mexico is known for its adobe-style homes hidden throughout the state’s rolling desert hills. The region is largely rural, and homeownership sits at 68% in the Land of Enchantment, which is higher than many places in the country.

Additionally, New Mexico has a variety of climates – from dry, arid deserts to cold mountain ranges – causing the types of home insurance claims in the state to vary widely. This means that your home coverage concencerns can run the gamut from frozen pipes to wind and rain damage to everything in between.

Whether it’s a two-story house in downtown Albuquerque or a sandy casita in the East Mountains, New Mexicans looking for home insurance should pay close attention to the coverages and discounts offered by local providers to find the best rate on reliable insurance. We found the state’s best home insurance companies to fit the varying needs of New Mexican homeowners.

The top home insurance companies in New Mexico

New Mexico has quite a few options for home insurance. To help you choose the best provider for you, we balanced the price of coverage with professional organization ratings to find companies in good standing that won’t break the bank.

  • Allstate – Low average prices matched with a solid three out of five rating from J.D. Power puts this insurer at the top of the list. Allstate offers a range of products including insurance for cars, boats, pets and even snowmobiles.
  • Farmers – This insurer offers home policies with claims forgiveness and declining deductibles, which provide plenty of savings for customers. It also earned an overall three out of five rating in J.D. Power’s 2019 U.S. Home Insurance Study. Aside from home, Farmers sells insurance for businesses, motorcycles and recreation.
  • State Farm – With a strong overall satisfaction J.D. Power rating of four out of five, and a variety of options to fit the needs of almost any homeowner, State Farm is a worthy choice. They also offer insurance for business, health, life and much more.
  • Farm Bureau – This provider offers their clients guaranteed replacement cost coverage and personal property insurance. Rural residents might also be interested in Farm Bureau’s insurance for agriculture and farm vehicles.
  • USAA – This insurer earns an industry-leading five out of five overall J.D. Power rating. However, only active or former members of the U.S. Military and their families qualify for USAA. But this is a significant portion of families living in New Mexico due to the bases and national laboratories in the area.

Methodology

We began our search for New Mexico’s best home insurance companies by examining professional ratings at J.D. Power, AM Best and the Better Business Bureau. After finding the industry’s top providers, we looked at each company’s pricing and availability in New Mexico.

Next we dove into the details to determine which insurers offer the most valuable coverages and discounts and whether or not the available policies would fit the needs of New Mexican homeowners.

Company J.D. Power AM Best BBB
Allstate 3/5 A+ A+
Farmers 3/5 A A+
State Farm 4/5 A++ A+
Farm Bureau Not rated A A+
USAA 5/5 A++ Not rated

Average homeowners insurance cost in New Mexico

The average cost of an annual home insurance premium in New Mexico is $2,299. The national average is $2,305, so residents in the Land of Enchantment will pay slightly less than other places in the U.S.

We also looked into individual quotes for the providers profiled in this review. For the quotes, we used a one-story, 2000 sq ft house in Albuquerque built-in 1960 with a 10-year-old roof and, owned by a 30-year-old male.

Allstate gave quotes on the home for each one of their three tiers of insurance: the basic plan is $108 monthly; the standard plan is $153 monthly and the enhanced plan is $166 monthly.

Farmers also gave quotes for the three tiers they offer customers: the standard plan is $663.68 annually, the enhanced plan is $781.90 annually and the premier plan is $902.04 annually.

Unfortunately, State Farm requires a social security number to get a quote, Farm Bureau requires speaking to an agent and USAA requires membership to get a quote, so we were not able to gather quotes from these providers.

State
State Ranking
Annual Average Premium
Oklahoma
1
$4,445
Iowa
20
$2,540
New Mexico
23
$2,299
Pennsylvania
40
$1,720
Hawaii
51
$499

Home insurance coverage options in New Mexico

The coverages offered in a standard home insurance policy differ from provider to provider, but here is a list of the common coverages that are available from New Mexican home insurers:

  • Dwelling: This coverage pays for the main dwelling and attached structures like a garage or deck
  • Other structures: This coverage pays for unattached structures like a shed or fence
  • Personal property: This coverage pays for personal belongings like jewelry and electronics
  • Personal liability: This coverage pays for costs resulting from a lawsuit when another party is injured on the insured property and the homeowner is found at fault
  • Loss of use: This coverage pays for housing and food costs if the owner needs to live elsewhere when their home is under repair

New Mexico experiences its fair share of property crime, so buying extra coverage for personal possessions is recommended for homeowners in the state. New Mexico also contends with wildfires in forest regions, with 15 percent of the state’s properties in danger. It’s a smart move to ask about coverage for wildfires during the quoting process if your home is located near a forest.

Common causes of home insurance losses in New Mexico

The state’s prolonged droughts bring wildfires almost every year, which is a continuing cause for concern among many of New Mexico’s rural homeowners. In 2019, the state experienced 859 wildfires. And severe thunderstorms during the monsoon season creates risks from hail and wind damage, as well as occasional flooding.

At nearly 10% over the national median, theft and other property crime in the state is unfortunately common, and many providers will offer discounts on homes with security measures like alarm systems and window bars.

Frequently asked questions

What is the best homeowners insurance in New Mexico?

The best New Mexico home insurance depends on the needs of the homeowner. Some homeowners only need the bare minimum of coverage while others might require specialized or higher levels of coverage.

How do I get homeowners insurance in New Mexico?

To get homeowners insurance in New Mexico, residents will first need to get a quote. A quote can be obtained by calling an agent and asking or, in some cases, the provider will have an online quote tool to provide the information.

What information do I need to get New Mexico home insurance

To get a quote for home insurance, homeowners will need information on the home like the year it was built and materials used, as well as personal information like claims history and credit score.

Is homeowners insurance required in New Mexico?

The state does not require homeowners to purchase home insurance, but many mortgage lenders require it in order for people to receive a mortgage.

How can I find out more about New Mexico home insurance?

People interested in finding out more about home insurance in New Mexico can check out the Rocky Mountain Insurance Information Institute. The organization features a wide variety of helpful information for homeowners located in the U.S. Southwest.