Best homeowners insurance in New Mexico of 2021
New Mexico has a climate with few extreme weather risks, but having the best homeowners insurance in New Mexico is still important to protect your investment. Home values are increasing significantly, with the median price at $248,670.
According to a Bankrate study on home insurance quotes, the average cost of New Mexico home insurance is $2,024 annually for $250,000 in dwelling coverage. The best New Mexico homeowners insurance companies offer affordable premiums, comprehensive coverage options, good discounts and excellent customer service reviews. Based on our extensive analysis, these are 2021’s best New Mexico homeowners insurance companies.
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, AM Best financial strength scores 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.
Learn more: Allstate Insurance review
Farmers’ home insurance policies are unique, offering three tiers of coverage. Farmers also has options for diminishing deductible, claim forgiveness and offers a 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.
Learn more: Farmers Insurance review
State Farm home insurance is generally affordable, with an average premium of $1,502 per year, although this provider offers fewer endorsements and discounts than some of its competitors. Potential ways to save with State Farm include multiple policy, safe home and roof discounts. State Farm stands out for its digital tools, offering several online resources, calculators and other tools.
Learn more: State Farm Insurance review
Travelers is top-rated by AM Best with an A++ (Superior) financial stability 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.
Learn more: Travelers Insurance review
How much is homeowners insurance in New Mexico?
On average, homeowners insurance in New Mexico costs $2,024 per year for a policy with $250k in dwelling coverage. New Mexico home insurance is more expensive than the average premium in the United States, which is $1,312 per year.
New Mexico home insurance is expensive compared to nearby states. For example, the average annual home insurance premium in Arizona is $1,189, and in Colorado, the average premium is $1,659 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 in New Mexico
New Mexico homeowners should be aware of certain weather risks in the state. Although severe weather events do not occur often, they can cause extensive damage to homes when they do happen. Fortunately, a home insurance policy can protect your finances against some of the most common causes of home damage.
New Mexico common causes of loss
New Mexico homeowners typically face weather-related losses. 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.
- Theft and other property crime: Nearly 10% over the national median, theft claims may be more common in the state.
- Flooding: Flooding can happen after major thunderstorms. Flooding can damage your home’s foundation, as well as electrical systems. However, flooding is not covered in a standard New Mexico homeowners insurance policy and coverage most likely needs to be purchased separately.
Home insurance coverage options 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) or through a private insurance company.
- 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 is not 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 rating.
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 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 will differ.