More on Home Insurance
More on Home Insurance
The cost of homeowners insurance in New Mexico is $1,326 a year for the average amount of coverage. New Mexico residents can compare rates from multiple companies with Policygenius.
Published September 10, 2020|6 min read
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Homeowners insurance is financial protection for your home, which is likely your most valuable asset, not to mention where you spend most of your time. New Mexico residents don’t have much to worry about in the way of inclement weather or natural disasters, but homeowners should still ensure their homes are properly insured against fire, theft, and water damage.
The statewide average cost of homeowners insurance in New Mexico is $1,326 per year, but the amount you pay for coverage will be determined by several different factors, namely the age and condition of your roof, your home’s construction type, your policy deductible, your claims history, and your credit score. Home insurance premiums also vary from company to company, even for the same property, which is why it’s so important to compare policy options and rates from several insurers — that’s where we come in.
To help simplify and better inform your shopping experience, Policygenius reviewed the five best homeowners insurance companies in New Mexico offered through our website. We then calculated the state’s cheapest and most expensive cities for home insurance based on hundreds of submitted quotes.
The cheapest homeowners insurance company in New Mexico is Safeco, according to Policygenius quote data
The average annual cost of homeowners insurance in New Mexico is $1,326 for $100,000–500,000 in coverage
When deciding on policy coverage, New Mexico residents should consider the state’s catastrophic coastal storms
Before selecting homeowners insurance that works for you and your home, you should do a little background research on the company servicing the policy. An exceptional homeowners insurance company will have good financial ratings, reliable customer service, affordable coverage, multiple policy options, and several available discounts.
With an average quote of $918 per year, American Strategic Insurance provides the cheapest New Mexico home insurance quote of any Policygenius partnering insurer. If you're a New Mexico resident looking for industry-best coverage at a low rate, then ASI is the company that you want insuring your home.
New Mexico residents with high-value homes should consider a homeowners insurance policy with AIG. The luxury insurance company provides guaranteed replacement cost dwelling coverage, replacement cost coverage on all personal property, and additional services like appraisals and risk protection consultations. AIG homeowners insurance policies are primarily intended for New Mexico homes with a replacement cost of more than $750k.
Read our full review of AIG here
New Mexico residents seeking to maximize structural coverage for their homes should consider MetLife’s superb replacement cost policy options. MetLife features three comprehensive tiers of coverage for both your home and personal property, with the option to add extended replacement cost and guaranteed replacement cost — two coverage add-ons that increase your dwelling coverage in the event your policy limit isn’t high enough.
Read our full review of MetLife here
One important indicator of an insurance company’s ability to pay out claims in an effective and timely manner is its financial stability, and Travelers is among the highest-rated insurers in that area. Travelers has an A+ rating from credit-rating agency A.M. Best, the second highest score a company can receive. Travelers also has high marks with Standard & Poors, which measures long-term financial stability, as well as Moody’s, which measures what the expected losses would be if a company were to go into default.
Read our full review of Travelers here
As work-from-home equipment, personal computers, and smart home devices become a ubiquitous part of the modern home, it’s important to have proper coverage for all of that expensive tech. But typical homeowners insurance policies can be dated and often don’t meet the coverage needs of today’s homeowner — that is until Hippo came along. A basic Hippo home insurance policy comes with $8,000 in personal computers coverage, as well as $8,000 in home office coverage, making it a must for tech-savvy New Mexico residents.
Read our full review of Hippo here
When comparing insurance companies, New Mexico residents may find that rates differ greatly from company to company for the same level of coverage. Certain companies may offer more coverage add-ons in a basic plan than competitors, while some may simply have higher rates than others.
After reviewing hundreds of quotes submitted with Policygenius, we found that ASI is the cheapest insurance company in New Mexico with an average annual premium of $918 for $100,000–500,000 in coverage. Hippo is the most expensive in that coverage range with an average annual premium of $1,665 for the same amount of coverage.
The average cost of homeowners insurance in New Mexico will also vary considerably based on how much dwelling coverage you have on your home. The amount of insurance you want on your home should be based on how much it would cost to rebuild your home from the ground up, not its market value.
Below is the average homeowners insurance quote for five different coverage ranges.
|Coverage Amount||Average Cost|
|Greater than $500,000||$ 4,151|
Insurance companies also price policies differently based on where in New Mexico your home is located. We found that Portales has the highest rates in the state with a $4,280 average annual premium for $100,000-500,000 in coverage. Farmington is the cheapest city in the state for home insurance with a $866 average annual premium.
|Cedar Crest||$ 1,886|
|Las Cruces||$ 1,132|
|Los Alamos||$ 3,031|
|Rio Rancho||$ 980|
|Santa Fe||$ 975|
|Santa Teresa||$ 970|
|White Rock||$ 4,002|
We selected the 15 largest cities in New Mexico by population where customers have submitted quotes with Policygenius. Quotes are based on a coverage amount between $100,000 and 500,000.
New Mexico experiences fairly mild weather throughout the year, but the state is still prone to the occasional bout of severe thunderstorms and flooding. The most common natural hazard in New Mexico is lightning and thunderstorms, according to the National Oceanic and Atmospheric Administration. Residents can expect severe thunderstorms once every four days during the months of March and October. Storms are also the most expensive cause of property loss in the state, accounting for around $5.9 million in annualized damage. New Mexico homeowners should ensure their homes are covered by a trusted insurance company with a reliable reputation handling claims.
No, homeowners insurance does not cover flood damage in New Mexico or any of the other 49 states. New Mexico residents can supplement that gap in coverage by purchasing a flood insurance policy. Flood insurance can typically be purchased through the same insurance company that insures your home.
Most flood policies are sold by private companies but administered by the federal government’s National Flood Insurance Program (NFIP). An NFIP flood policy can cover up to $250,00 for the structure of your home and up to $100,000 for personal belongings.
The New Mexico Office of Superintendent of Insurance is an essential resource both for New Mexico homeowners purchasing coverage for the first time and for those who already have insurance but have questions related to their coverage or would like to file a complaint.
Homeowners insurance companies can cancel your insurance for a number of reasons — maybe you filed too many claims in a short period of time, maybe the insurance company no longer offers coverage where you live, or maybe they determined your home was too risky to insure after a recent inspection.
If you’re struggling to find coverage, you can get last-resort coverage via a New Mexico Fair Access to Insurance Requirements (FAIR) Plan, a not-for-profit insurance association that provides basic coverage for New Mexico residents who are unable to get home insurance on the open market.
Not where you live? We've got you covered, check out our guide to homeowners insurance in your state