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Best homeowners insurance in New Mexico for 2023

Allstate, Travelers, State Farm and Farmers are writing some of the best homeowners policies in the Land of Enchantment.

Updated Oct 25, 2023
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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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Compare the best homeowners insurance companies in New Mexico

New Mexico homeowners pay an average rate of $1,789 annually for $250K of dwelling coverage. This rate is above the national average of $1,428, making the Land of Enchantment one of the more expensive states to insure a home.

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 2022 U.S. Home Insurance Study and how each was rated for financial strength per AM Best. These factors and more were used to award New Mexico homeowners insurance companies a Bankrate Score, with top scores earning a place among the best of the best:

Insurance company AM Best J.D. Power score Average monthly premium Average annual premium
A+
815
/1,000
$117
$1,407
Get a quote
A++
794
/1,000
$116
$1,386
Get a quote
A++
829
/1,000
$115
$1,382
Read review
A
792
/1,000
$249
$2,983
Get a quote
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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.

The top 4 home insurance companies in New Mexico

Allstate

Best for local agents

Rating: 3.5 stars out of 5
3.5 Bankrate Score
JD Power: 815/1,000 AM Best: A+

Average annual premium

$ 1,407 for $250k dwelling coverage
Allstate Review Get a personalized quote

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 located in their community. Allstate also offers generous discounts and a wide variety of coverage options. Its welcome, homebuyer 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.

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.

Travelers

Best for cheap rates

Rating: 3.3 stars out of 5
3.3 Bankrate Score
JD Power: 794/1,000 AM Best: A++

Average annual premium

$ 1,386 for $250k dwelling coverage
Travelers Review Get a personalized quote

Why Travelers made our list: Travelers is competitively priced in the state while being 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 an expanded policy. 

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. 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.

State Farm

Best for customer satisfaction

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: 829/1,000 AM Best: A++

Average annual premium

$ 1,382 for $250k dwelling coverage
State Farm Review Get a personalized quote

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 ranking. 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.

Farmers

Best for discounts

Rating: 2.9 stars out of 5
2.9 Bankrate Score
JD Power: 792/1,000 AM Best: A

Average annual premium

$ 2,983 for $250k dwelling coverage
Farmers Review Get a personalized quote

Why Farmers made our list: Farmers has options for a diminishing deductible, claim forgiveness and 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.

Who Farmers may be good for: Homeowners interested in having 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.

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.

Clock Wait
46
years of industry expertise
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122
carriers reviewed
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20.7K
ZIP codes examined
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1.2M
quotes analyzed

How much is home insurance in New Mexico?

The average cost of homeowners insurance in New Mexico is $1,789 for $250,000 in dwelling coverage. This is 25 percent above the national average of $1,428 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 policy with one of our chosen New Mexico homeowners insurance companies will help protect you from financial damages if you experience a loss.

Average annual premiums by coverage level

Insurance company $150K $250K $350K $450K $750K
$973
$1,407
$1,861
$2,203
$3,033
$939
$1,386
$1,824
$2,186
$3,449
$981
$1,382
$1,685
$2,083
$3,252
$1,848
$2,983
$4,282
$5,592
$9,524
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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.

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 safe from disasters or crime are likely to see lower rates. Below are some of the cheaper cities in New Mexico for homeowners insurance.

  • Deming: $1,653 — 7 percent below the state average
  • Eagle Nest: $1,653 — 7 percent below the state average
  • Clines Corners: $1,659 — 7 percent below the state average
  • Moriarty: $1,693 — 5 percent below the state average
  • Bosque: $1,701 — 5 percent below the state average

Areas that are likely to see higher rates in New Mexico are those in urban settings. The increased housing density in these areas makes them more susceptible to fires, while crime may also play an increased role.

  • Rowe: $2,082 — 16 percent above the state average
  • Serafina: $2,071 — 16 percent above the state average
  • Angel Fire: $2,019 — 13 percent above the state average
  • Encino: $1,869 — 4 percent above the state average
  • Cimarron: $1,847 — 3 percent above the state average

How to find the best cheap home insurance in New Mexico

Home insurance is not required by law in New Mexico. However, if you have a mortgage, your lender will likely require you to purchase a policy. Even if you own your home outright, though, having home insurance is typically a good idea. In the event of damage, you could find yourself with hefty out-of-pocket expenses if your home isn’t insured. 

Here’s how to find high-quality homeowners insurance in New Mexico that’s affordable:

  1. Gather information on your house. When was your home built? How old is the roof? What is the square footage? You'll need this information when getting quotes.
  2. Review top companies. The New Mexico home insurance companies listed here or on our cheapest homeowners insurance companies list may be good options to start with.
  3. Take a look at the websites of the companies that interest you. Company websites should be easy to navigate and be information-rich. If you prefer to handle your insurance business online, see if the company has a smartphone app.
  4. Gather quotes. In many cases, you may be able to get a quote from the website. For some companies, you'll need to call or visit an agent. It's a good idea to get more than one quote to see who offers you the best rate. You could also consider working with an independent agent to help you gather and compare quotes.
  5. Ensure the quotes are comparable. All the quotes you get should be for the same or similar coverage types and amounts and include any available discounts.
  6. Consider the companies’ Bankrate Scores. We compile each company’s premium and performance across different areas such as customer service, financial strength and accessibility into an easy-to-compare Bankrate Score. Once you have your quotes, you can use the score as a tool to help you narrow down your selection.
  7. Complete an application for your chosen company. You may be able to do this online, over the phone or in person with an agent.
  8. Wait to finalize your coverage. Once your application has been submitted, you should hear from the company shortly after. This may happen instantaneously or require more time for their underwriting decision. Once you’re approved for coverage, you will pay your first premium.

Common 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 with New Mexico homeowners.

Home insurance coverage options 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, 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, which can be important coverage for homeowners with a basement.
  • 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% 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.
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News that affects New Mexico 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:

  • 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

Written by
Mary Van Keuren
Contributor, Insurance

Mary Van Keuren has written for insurance domains such as Bankrate, Coverage.com, and The Simple Dollar for the past five years, specializing in home and auto insurance. She has also written extensively for consumer websites including Reviews.com and Slumber Yard. Prior to that, she worked as a writer in academia for several decades.

Edited by Editor, Insurance
Reviewed by Director of corporate communications, Insurance Information Institute