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Best homeowners insurance in New Mexico for 2024

Bankrate’s analysis points to Allstate, Travelers, State Farm and Farmers as some of the top home insurance companies in New Mexico.

Updated Feb 08, 2024
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Compare the best homeowners insurance companies in New Mexico

New Mexico homeowners pay an average rate of $2,168 annually for $250K of dwelling coverage. This rate is 23 percent more the national average of $1,759. This rate is also 22 percent more the average rate in neighboring Arizona, but 33 percent less than the average rate in Colorado.

Your personal rate for home insurance in New Mexico is likely to be different, however, as it is based on characteristics unique to you — like your credit history and the age and condition of your home. That said, you can get a feel for what you might pay below by reviewing average premiums obtained from Quadrant Information Services. In addition, you can see how each company fared in J.D. Power’s 2023 U.S. Home Insurance Study and how each was rated for financial strength by AM Best. These factors and more were used to award each New Mexico homeowners insurance company a Bankrate Score out of 5.0 points.

Insurance company J.D. Power Average monthly premium Average annual premium
809
/1,000
$140
$1,676
Get a quote
829
/1,000
$102
$1,222
Read review
790
/1,000
$137
$1,641
Get a quote
800
/1,000
$284
$3,414
Get a quote
*Premiums are for $250K in dwelling coverage
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

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Read our full methodology

The home insurance market can be complicated, but Bankrate's insurance editorial team used our unique perspective to bring readers information they need to make educated decisions when shopping for home insurance.

46

years of industry expertise

122

carriers reviewed

20.7K

ZIP codes examined

1.2M

quotes analyzed

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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Quick Facts
Moneybag
$382/year
average savings through Bankrate
Two Thirds
2 out of 3 homes
are underinsured
Insurance Home
1 out of every 20
insured homes makes a claim each year
Circle Check
100% of homes
need insurance before getting a mortgage
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The top 4 home insurance companies in New Mexico

Best for local agents

4.2

Rating: 4.2 stars out of 5

Avg. premium for $250K dwelling

$140/mo

Avg. premium for $250K dwelling

$1,676/yr

Customer satisfaction

809/1,000

Best for customer satisfaction

4.2

Rating: 4.2 stars out of 5

Avg. premium for $250K dwelling

$102/mo

Avg. premium for $250K dwelling

$1,222/yr

Customer satisfaction

829/1,000

Best for cheap rates

4.1

Rating: 4.1 stars out of 5

Avg. premium for $250K dwelling

$137/mo

Avg. premium for $250K dwelling

$1,641/yr

Customer satisfaction

790/1,000

Best for discounts

3.6

Rating: 3.6 stars out of 5

Avg. premium for $250K dwelling

$284/mo

Avg. premium for $250K dwelling

$3,414/yr

Customer satisfaction

800/1,000

Additional New Mexico home insurance companies to consider

Liberty Mutual

Liberty Mutual

Who this may be best for

Homeowners looking to bundle their auto and home with the same company.

With online policy management, several discount opportunities and several home endorsement options, Liberty Mutual may be a solid choice for those looking for a new home insurance provider. Read Bankrate's Liberty Mutual insurance review to learn more about this company.

Chubb

Chubb

Who this may be best for

Homeowners with high-value homes.

Homeowners in cities like Albuquerque and Santa Fe may appreciate the specialized services Chubb offers policyholders with high-value homes. Options like free consulting services, extended replacement cost and coverage for unique needs like equestrian facilities make it a stand-out option. To learn more about what this provider offers, read Bankrate's Chubb insurance review.

How Bankrate chose the best home insurance companies in New Mexico

Bankrate's editorial team assesses various metrics to find the best New Mexico homeowners insurance. We know that price is an important consideration, but it is only one of the factors you may take into account when shopping for your own policy. Customer service and financial strength ratings also play a role, as well as the breadth of coverage options and discounts available. We also look at each company's website and mobile app to see if they make it easy to do business online.

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Finding cheap home insurance in New Mexico

Increasing wildfire threats are a primary challenge for the New Mexico home insurance market. Knowing what questions to ask, how to look for discounts and comparing quotes between carriers may be the best way to save money amidst New Mexico's rising home insurance costs. Back to top Caret Up

Cheapest home insurance companies in New Mexico

With average rates higher than the national average, New Mexico homeowners may benefit from comparison shopping their policy at least every few years. To get an apples-to-apples rate comparison, make sure the coverage limits and endorsement types are similar. Bankrate found that the following insurance companies tend to have the lowest average premiums for home insurance in New Mexico:

Carrier Monthly premium for $250k coverage Annual premium for $250k coverage Savings vs state avg. for $250k coverage
$102
$1,222
- $946
$137
$1,641
- $527
$140
$1,676
- $492
*based on $250K dwelling coverage
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Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

How to get cheap New Mexico home insurance

Home insurance is not required by law in New Mexico or any other state. However, if you have a mortgage, your lender will likely require you to purchase a policy. Even if you own your home outright, paying for a home insurance policy is typically cheaper than replacing your home in the  event of a total loss. If you're struggling to find affordable rates in New Mexico, consider these steps:

  1. Gather information on your house. When was your home built? How old is the roof? What is the square footage? This information will help you determine how much coverage you need and simplify the quoting process.
  2. Review top companies. Comparing coverage options, discounts, digital tools and agent availability from top companies will help you narrow down options that could meet your coverage needs. You may want to pay specific attention to companies that offer endorsements you want and those with lots of relevant discounts.
  3. Gather quotes. In many cases, you may be able to get a quote online. For some companies, you'll need to call or visit an agent. Most insurance professionals recommend comparing quotes for similar coverage selections from at least three companies.
  4. Complete an application for your chosen company. Once you choose the company with the best coverage package for you, it's time to fill out an application. You may be able to do this online, over the phone or in person with an agent.
  5. Wait to finalize your coverage. Once your application has been submitted, you should hear from the company shortly. This may happen instantaneously or require more time for their underwriting decision. Once you’re approved for coverage, you will pay your first premium. Note that homeowners insurance is typically paid through your escrow account, so you'll likely need to inform your lender about your coverage decision.

Best home insurance discounts in New Mexico

Discounts can play a significant role in lowering your premium. Many of them are easily earned and require very little work on your part. Here are a few that are common:

Some insurers will offer a small discount just for purchasing a new policy with the company.
If you have just purchased your home, you may earn a discount. You may also be eligible if your home is less than a certain number of years old (10 years is common).
If you bundle your homeowners insurance with car, life or another type of policy, you may earn a discount on one or both policies (life insurance is legally not eligible for discounts).
Many insurers offer discounts for protective devices like burglar alarms and sprinkler systems.
Some insurers will extend a discount to policyholders who go a set number of years without filing a claim.

How to save on home insurance policy renewals in New Mexico

Securing a home insurance policy is a great start. However, rates can change every renewal period, so a good deal now might not be the best option a few years down the line. Here are a few ways to help keep your renewal cost low:

  • Maintain your roof. Newer roofs may qualify your home for certain discounts depending on your carrier. A well-maintained roof can also reduce the risk of extreme damage, saving both you and your provider money.
  • Maintain your credit. Maintaining a good credit score can help you keep lower insurance rates. If your credit score substantially improves, let your insurance provider know, and it may be able to offer you a lower rate.
  • Limit your claims. Insurance professionals recommend only submitting claims when you can not afford to pay for the repairs yourself. The more claims a homeowner files, the riskier they become to insure, which increases the cost of home insurance.
  • Reduce your fire exposure. New Mexico is susceptible to wildfires. Taking steps to reduce your fire risk, like installing sprinkler systems, creatig defensible space in your yard and choosing fire-resistant building materials may earn you a lower home insurance rate.
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Understanding home insurance costs in New Mexico

New Mexico is susceptible to drought, flooding and wildfires. While wildfire is a covered peril in most standard home insurance policies, flood damage is not. Even dry parts of New Mexico can experience destructive flash floods, especially during monsoon season. Evaluating your home's risk exposure may help you build a more comprehensive home insurance policy. Back to top Caret Up

How much is home insurance in New Mexico?

The average cost of homeowners insurance in New Mexico is $2,168 for $250,000 in dwelling coverage. This is 23 percent more the national average of $1,759 a year for the same amount of coverage. New Mexico's rate may be higher than the national average because the state is prone to disasters such as wildfires, which are becoming more prevalent in the state due to climate change. New Mexico also has a higher rate of property crime, such as burglaries, than the national average. A robust home insurance policy may help financially protect you if you experience a covered loss.

New Mexico homeowners insurance rates by city

Your ZIP code plays a role in determining what your home insurance premium will be in New Mexico. Insurers look carefully at areas of high crime as well as locations that see frequent natural disasters. To protect themselves from increased risk, they are likely to charge more for policies in these regions. Conversely, areas that are seen as less susceptible to disasters and crime are likely to see lower rates.

  • Eagle Nest: $1,934 per year — 11 percent below state average
  • Cimarron: $1,991 per year — 8 percent below state average
  • Clines Corners: $2,001 per year — 8 percent below state average
  • Bosque: $2,008 per year — 7 percent below state average
  • Mountainair: $2,033 per year — 6 percent below state average
  • Rowe: $2,574 per year — 19 percent above state average
  • Serafina: $2,564 per year — 18 percent above state average
  • Angel Fire: $2,274 per year — 5 percent above state average
  • Encino: $2,268 per year — 5 percent above state average
  • Peralta: $2,185 per year — 1 percent above state average

*Rates are for $250,000 in dwelling coverage.

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Insuring your New Mexico home

Wildfires, high winds and hail are the main perils causing damage to homes in New Mexico. Ensuring your policy has the right coverage, including additional endorsements, can be the best way to protect your home financially. Back to top Caret Up

What does home insurance cover in New Mexico?

The typical home insurance policy is an HO-3 policy form. This type of home insurance policy covers the dwelling and other structures on an open peril basis, meaning anything that isn't explicitly listed under policy exclusions is covered. It is good to keep in mind that personal property is different. It is usually covered on a named perils basis, meaning only the perils listed in the policy are covered. Below are common causes of loss in New Mexico typically covered by a standard policy.

  • Fire and lighting: Whether caused by a lightning strike, wildfire or a cooking mishap, fire is a covered peril on most home insurance policies. For homeowners living in high-risk wildfire areas, make sure your policy does not have a wildfire exclusion. If it does, ask your insurance agent about a standalone wildfire policy.
  • Windstorm and hail: High winds, tornadoes and hailstorms are common in New Mexico but typically covered by an HO-3 policy. Some providers require homeowners to have a separate wind deductible, which is based on a percentage of the dwelling coverage. As the risk from high winds increases, standalone windstorm insurance policies may be another option for homeowners.

Additional home insurance coverage types in New Mexico

The coverage types 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,you may want to purchase a standalone flood insurance policy from the National Flood Insurance Program (NFIP) or through a private insurance company. Some companies offer flood insurance as an endorsement, but this is rare.
  • 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 re-landscape your yard if your garden, trees, shrubs or lawn get damaged by a covered peril, including fires. Standard homeowners policies include coverage at 5 percent 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.

Related content:

Common New Mexico home insurance problems

One of the biggest concerns for homeowners in New Mexico is the increasing cost associated with the state's wildfire risks. In particular, private residences and commercial property in Northern New Mexico are experiencing difficulty securing insurance. Here are some of the key challenges these areas are facing:

  • The 2022 McBride Fires: These fires brought attention to the increased risk of wildfire loss in the future. Extreme weather is causing excessive heat and drought, increasing the likelihood of more wildfire losses.
  • Reinsurance companies. Insurance companies use reisurance to ensure they remain financially stable in the event of a disaster with widespread claims. However, even reinsurance companies are becoming more hesitant to write policies in areas at high risk for wildfire loss.
  • High insurance premiums. Even if you can secure coverage, you'll likely see high premiums in fire-prone regions as a result of more frequent losses and the higher risk rating passed down from reinsurance companies to insurance providers. These costs are eventually passed down to homeowners.

!

Recent news in New Mexico homeowners insurance market

More than 900,000 acres burned in New Mexico in 2022 — over three times the annual average of 270,000 acres. The Natural Resources Defense Council, a nonprofit environmental advocacy group, has written about the challenges facing New Mexico homeowners. Here's what you need to know:

  • Some homeowners in Northern New Mexico have had their home insurance policies non-renewed and are having trouble securing insurance coverage due to the high risk of loss from wildfires.
  • Climate change is fueling a change in New Mexico's weather, with the state's average temperature now 3.3 degrees Fahrenheit higher than it was in 1970.
  • This increase is sufficient enough to result in health hazards as well as an increase in wildfires.
  • While wildfires are known to do direct damage to your home and property, you should know that even if your house is not in the direct line of a fire, smoke damage can lead to insurance claims as well as health risks.
  • New Mexico officials have committed to reducing carbon pollution by at least 45 percent by 2030, which can lead to decreased climate changes and therefore fewer fires.

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Written by
Shannon Martin
Writer, Insurance

Shannon Martin is a licensed insurance agent and Bankrate analyst with 15 years of experience in the industry. She enjoys helping others navigate the insurance world by cutting through complex jargon and empowering readers to make strong financial decisions independently.

Edited by Editor, Insurance
Reviewed by Expert Reviewer, CFA, CPA