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Best homeowners insurance companies in New Mexico for 2024
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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.
Compare the best homeowners insurance companies in New Mexico
New Mexico homeowners pay an average rate of $2,405 annually for $300,000 of dwelling coverage. This rate is 12 percent more the national average of $2,151. This rate is also 16 percent more the average rate in neighboring Arizona, but 20 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 |
$129
|
$1,548
|
||
829
/1,000 |
$127
|
$1,519
|
||
790
/1,000 |
$280
|
$3,359
|
||
800
/1,000 |
$273
|
$3,278
|
Powered by Coverage.com (NPN: 19966249)
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.
Bankrate's trusted insurance industry expertise
Read our full methodologyThe 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
34.5K
ZIP codes examined
1.2M
quotes analyzed
The top 4 home insurance companies in New Mexico
Best for local agents
4.2
4.2
Avg. premium for $300K dwelling
$129/mo
Avg. premium for $300K dwelling
$1,548/yr
Customer satisfaction
809/1,000
-
Why Allstate made our list: Allstate is known for its extensive agent network, making it an attractive option for those who appreciate working through questions about their coverage with an agent in their community. Allstate also offers generous potential discounts and a wide variety of coverage options. Its welcome, homebuyer and protective device discounts may make this provider a cheap option for new homeowners. Plus, you can customize your coverage with add-ons like sports equipment coverage.
Who Allstate may be good for: If you prefer talking to an agent in person and developing a relationship with them versus managing your policy digitally, Allstate might be a good option for you. The company has local agents in most of the state's urban regions, from Alamogordo to Santa Teresa, so you should be able to find one near you.
Best for customer satisfaction
4.2
4.2
Avg. premium for $300K dwelling
$127/mo
Avg. premium for $300K dwelling
$1,519/yr
Customer satisfaction
829/1,000
-
Why State Farm made our list: Like Allstate, State Farm has local agents across New Mexico, and it also has a reputation for superior customer service, as proven by its above-average J.D. Power home insurance score. State Farm also offers highly-rated digital tools, so if efficient and reliable service is high on your priority list, you may want to ask the company for a quote.
Who State Farm may be good for: State Farm may be best for homeowners looking for basic coverage, as it doesn’t offer many endorsements. However, the company is the largest U.S. home insurer by market share and stands out for its digital tools, offering several online resources, calculators and other tools.
Best for cheap rates
4.1
4.1
Avg. premium for $300K dwelling
$280/mo
Avg. premium for $300K dwelling
$3,359/yr
Customer satisfaction
790/1,000
-
Why Travelers made our list: Travelers is competitively priced in the state and is top-rated by AM Best with an A++ (Superior) financial stability rating. Travelers offers well-rounded coverage with options for personal liability and special personal property coverage for an expanded policy. Travelers did come in towards the bottom of the list on J.D. Power's 2023 Home Insurance Study, so if you prioritize service, you may want to speak with existing policyholders for details on their experience.
Who Travelers may be good for: If you are working with a tight budget, Travelers' average rate for New Mexico home insurance is comparatively low out of our chosen companies. Several discounts, including a unique green home discount, could save you even more on your premium.
Best for discounts
3.6
3.6
Avg. premium for $300K dwelling
$273/mo
Avg. premium for $300K dwelling
$3,278/yr
Customer satisfaction
800/1,000
-
Why Farmers made our list: Farmers offers robust endorsements and has options for diminishing deductible, claim forgiveness and claims-free discounts 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.
Who Farmers may be good for: Homeowners interested in multiple ways to save on their premium may want to consider seeking a quote from Farmers. Although Farmers' average rate is on the high side, it offers more discounts (13, to be exact) than any other company on our list.
Additional New Mexico home insurance companies to consider
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
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.
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 $300k coverage | Annual premium for $300k coverage | Savings vs state avg. for $300k coverage | |
---|---|---|---|---|
$127
|
$1,519
|
- $886 |
||
$129
|
$1,548
|
- $857 |
||
$273
|
$3,278
|
+ $873 |
Powered by Coverage.com (NPN: 19966249)
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:
- 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.
- 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.
- 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.
- 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.
- 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:
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.
How much is home insurance in New Mexico?
The average cost of homeowners insurance in New Mexico is $2,405 for $300,000 in dwelling coverage. This is 12 percent more the national average of $2,151 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.
- Los Alamos: $1,289 per year — 46 percent below state average
- Bayard: $1,489 per year — 38 percent below state average
- Grants: $1,501 per year — 38 percent below state average
- Hurley: $1,501 per year — 38 percent below state average
- Milan: $1,507 per year — 37 percent below state average
- Kenna: $9,086 per year — 278 percent above state average
- Quay: $9,044 per year — 276 percent above state average
- Kirtland Afb: $8,101 per year — 237 percent above state average
- Ute Park: $8,085 per year — 236 percent above state average
- San Rafael: $8,030 per year — 234 percent above state average
*Rates are for $300,000 in dwelling coverage.
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.
!
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.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze April 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on married male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $150,000, $300,000, $350,000, $450,000, $750,000
- Coverage B, Other Structures: $15,000, $30,000, $35,000, $45,000, $75,000
- Coverage C, Personal Property: $75,000, $150,000, $175,000, $225,000, $375,000
- Coverage D, Loss of Use: $30,000, $60,000, $70,000, $90,000, $150,000
- Coverage E, Liability: $500,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
Bankrate Scores
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Cost & ratings 50%
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Coverage & savings 30%
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Support 20%