Best homeowners insurance in New Mexico 2021
New Mexico has a climate with few extreme weather risks, but having homeowners insurance is still important for many people. The average cost of homeowners insurance in New Mexico is $1,545 per year for a policy with $250K in dwelling coverage.
The best home insurance companies in New Mexico offer affordable premiums, comprehensive coverage options, good discounts and excellent customer service reviews. Based on our extensive analysis, these are 2021’s best homeowners insurance in New Mexico.
Best home insurance companies in New Mexico
New Mexico has several options for the best home insurance. These are some of the top companies we found based on average 2021 rates from Quadrant Information Services, accessibility, website, coverage options and J.D. Power customer satisfaction scores.
|Home insurance company||Average annual premium for $250K Liability||J.D. Power customer satisfaction score|
Allstate is rated above average for overall customer satisfaction by J.D. Power, and it has an A+ rating from AM Best for financial strength. Allstate offers generous discounts and a wide variety of coverage options. Its welcome, home buyer, and protective device discounts may make this provider appealing to new homeowners. Ask your Allstate agent about Rate Guard, which may help protect your low rates for a longer period of time.
Farmers’ home insurance policies are unique, offering three tiers of coverage. That means you only have to pay for the coverages you need or want. Farmers also has a diminishing deductible, claim forgiveness guarantee and claims-free discount for eligible policyholders. There are also exclusive potential savings for public safety officers and other professional organizations, so it may be beneficial to check whether your employer or organization is eligible for extra savings.
State Farm home insurance is generally affordable, with an average premium of $1,221 per year, although this provider offers fewer endorsements and discounts than its competitors. Potential ways to save with State Farm include multiple policy, safe home and roof discounts. Where State Farm stands out is its digital tools, offering several online resources, calculators and other tools.
Travelers is top-rated by AM Best with an A++ (Superior) rating for additional claims security. Travelers offers well-rounded coverage with options for personal liability and special personal property coverage for expanded coverage. If you have high-value items, you may be interested in the additional replacement cost protection coverage and additional living expenses coverage, also known as loss of use coverage.
Average cost of homeowners insurance in New Mexico
On average, homeowners insurance in New Mexico costs $1,545 per year for a policy with $250K in dwelling coverage. New Mexico home insurance is slightly more expensive than the average premium in the United States, which is $1,477 per year.
New Mexico home insurance is moderately priced compared to nearby states. For example, the average home insurance premium in Arizona is $1,304, and in Colorado, the average premium is $1,995 per year. New Mexico does not typically experience extreme weather, but the risk of wildfires and earthquakes may make the price of insurance above average.
Home insurance considerations in New Mexico
New Mexico homeowners should be aware of certain weather risks in the state, including earthquakes, wildfires, tornadoes and windstorms. Although these events do not occur often, they can cause extensive damage to homes. Fortunately, a home insurance policy can protect your home against some of the most common threats.
New Mexico common causes of loss
New Mexico homeowners typically face weather-related losses. But at nearly 10% over the national median, theft and other property crime in the state is also common, which can lead to more frequent theft claims. Here are some of the most common causes of loss in New Mexico:
- Wildfires: Many homes in New Mexico are susceptible to fire damage, especially during the drier months. Wildfires have become more prevalent in recent years.
- Earthquakes: Earthquakes are not a common occurrence in New Mexico, but they do happen, and strong quakes can cause severe home damage.
- Flooding: Flooding can happen after major thunderstorms. Flooding can damage your home’s foundation, as well as electrical systems.
Common coverages in New Mexico
The coverages offered in a standard home insurance policy typically include dwelling, personal property, liability, medical payments and loss of use coverage. New Mexico homeowners may also want to consider the following endorsements:
- Flood insurance: Because standard home insurance policies do not include flood coverage, some consumers decide to purchase a standalone flood insurance policy from the National Flood Insurance Program (NFIP).
- Sump pump coverage: Sump pump coverage pays to repair clogged sump pumps and pipes. It will also pay for accidental water damage caused by backups. Sump pump and water backup coverage isn’t typically included in a home policy, but many insurance carriers offer it as an optional endorsement.
- Yard and garden coverage: Yard and garden coverage will help pay to relandscape your yard if your garden, trees, shrubs or lawn get damaged by a covered peril, including fires. Standard homeowner’s policies include coverage at 5% of the dwelling amount (not to exceed $500 per tree, bush or shrub), so consumers with extensive landscaping may choose to purchase additional coverage on their policy.
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 legally require homeowners to purchase home insurance, but many mortgage lenders require it in order for people to receive and maintain a mortgage. For instance, if you drop your home insurance or stop paying your premiums, your mortgage company can choose an insurer for you and charge you for it.
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.
Bankrate utilizes Quadrant Information Services to analyze 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.
Rates are determined based on 2021 Quadrant Information Services data.