Best homeowners insurance in New Mexico for 2022

We looked at policy cost, coverage quality, and unique policy offerings for New Mexico residents to find the best homeowners insurance companies in New Mexico.

Laura Gunn

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Laura Gunn

Laura Gunn

Freelance contributor

Laura Gunn is an insurance expert and writer. As a former English teacher, she made the transition to full-time writing and editing in 2016. Since that time she has written extensively about insurance topics, as well as topics pertaining to education and marketing.

Her work has been published in The Millennial Source, News Hunt 360, Realty Today, HNGN, and other publications.

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This article has been reviewed by a licensed Policygenius expert to ensure that sources, statistics, and claims meet our standard for accurate and unbiased advice.

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Pat Howard

Pat Howard

Senior Editor & Licensed Home Insurance Expert

Pat Howard is a senior editor and licensed home insurance agent at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.

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The average cost of homeowners insurance in New Mexico is $1,792 per year or $149 a month. This is around 10% lower than the national average of $1,899 per year. 

But there are other factors you should consider when choosing an insurer. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in New Mexico.

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Best homeowners insurance companies in New Mexico

Of the companies we looked at, Farmers Insurance has the lowest rate, with an average annual cost of $1,581 — over $200 less than the state average. While State Farm’s home insurance rates are higher than average, it performs well in the customer satisfaction category.  

Policygenius analyzed thousands of quotes from the largest New Mexico insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of New Mexico residents to find the best homeowners insurance in New Mexico.

Company

Average yearly cost

J.D. Power Rating

State Farm

$2,003

835

Farmers

$1,581

813

State Farm

State Farm logo

There's a reason State Farm is one of the top-rated insurance companies in the U.S. — its customer satisfaction ratings are through the roof, it offers a slew of coverage add-ons for full protection, and makes filing claims through its mobile app a breeze.

Pros

  • Top-tier coverage add-ons, including equipment breakdown, water backup, and service line coverage

  • Get up to $1 million in personal liability coverage

  • Score discounts for bundling, installing security devices, and choosing a high deductible

  • File and track claims online, over the phone, in person, or through its mobile app

  • High customer satisfaction and financial strength ratings

Cons

  • No discounts for first-time homebuyers or going a year without a claim

Why State Farm tops our best list

State Farm stands out for its impeccable customer satisfaction ratings with J.D. Power and flexible coverage option, including numerous add-ons like water backup coverage. There's even flexibility in how you file claims — from filing online and over the State Farm app to calling into an agent, there is something for everyone. 

How to get a quote

Online through State Farm

Farmers

Farmers logo

Farmers is one of the largest and most reputable home insurance providers in the industry, offering special discounts for teachers, nurses, first responders, and non-smokers — plus the option to rebuild your home with green materials after a claim.

Pros

  • Several discounts and unique ways to save, including claim forgiveness and declining deductibles

  • 3 flexible coverage packages with varying levels of protection for most coverage and budget needs

  • Offers extended and guaranteed replacement cost coverage options

  • File claims online, via text, on its mobile app, or by calling its claims center

Cons

  • Rates are typically more expensive

  • Below-average customer satisfaction ratings

  • No repair network to help you find a certified contractor or repair professional after filing a claim

Why Farmers tops our best list

Farmers is one of the largest and most reputable homeowners insurance companies in the business. This means they’ve built a reputation of trust and performance for their customers. Farmers offer three highly customizable insurance packages — plus extensive discount options — providing great home insurance coverage at an affordable rate. 

How to get a quote

Online through Farmers

Cheapest homeowners insurance companies by city in New Mexico

Looking at average home insurance costs for the most popular insurers in New Mexico, we found that the cheapest homeowners insurance companies in the state are State Farm and Farmers. Most cities in New Mexico have an average annual home insurance rate of $1,300. Average costs tend to rise the further north you go.  

City

Company

Average yearly cost

Abiquiu

Farmers

$1,393

Alamogordo

Farmers

$1,393

Albuquerque

Farmers

$1,393

Alto

Farmers

$1,393

Amalia

Farmers

$1,199

Amistad

State Farm

$1,802

Angel Fire

Farmers

$1,199

Animas

Farmers

$1,174

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Shopping for homeowners insurance in New Mexico

Shopping for the right homeowners insurance is more than a quick Google search and a few clicks of the mouse. You'll want to make sure you find the right coverage types and amounts to suit the needs of your specific home. 

New Mexico residents will want to make sure their dwelling coverage limit is high enough to cover the cost of a full rebuild after a potentially devastating wildfire.

In this section, we break down the average annual home insurance rates in New Mexico for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies in the state for individuals with a poor credit score, dog owners, and pool owners. Once you’re ready to shop, a Policygenius expert can help you navigate your coverage needs and help you find the best deal on homeowners insurance in New Mexico

New Mexico home insurance costs by coverage amounts

Dwelling coverage is the part of your home insurance that covers the physical structure of your home and anything attached to it. Your dwelling coverage amount should be equal to your home’s rebuild cost.

The table below highlights the relationship between dwelling coverage amounts and home insurance premiums. In general, more dwelling coverage means higher homeowners insurance rates. 

New Mexico residents see the most significant rate jump between the $400,000 and $500,000 range — a nearly $600 difference in premiums between those two coverage levels.

Dwelling coverage amount

Average yearly cost

$100,000

$797

$200,000

$1,258

$300,000

$1,792

$400,000

$2,323

$500,000

$2,921

Liability coverage is the part of your home insurance that pays for medical or legal bills in the event you’re responsible for an injury or property damage. Your coverage amount should be based on the total value of your assets, including your home, vehicles, and cash assets. 

Like dwelling coverage, more liability coverage usually means higher insurance premiums in New Mexico. The table below shows just how much more each liability coverage amount costs in yearly premiums. 

Liability coverage amount

Average yearly cost

$100,000

$1,774

$300,000

$1,792

$500,000

$1,806

New Mexico home insurance costs by deductible amount

Homeowners insurance also includes a deductible, which is the amount you’re responsible for paying each time you file a claim. In general, a high deductible means lower home insurance premiums. 

If your home is in an area with a high risk of wildfires, like most residents in New Mexico, then choosing a higher deductible may not be the wisest option if you foresee multiple claims in your future.

Deductible amount

Average yearly cost

$500

$1,722

$1,000

$1,792

$2,000

$1,793

Home insurance discounts in New Mexico

A good way to lower your monthly rates is to seek out available discounts. Many insurance providers offer discounts when adding safety and security features to your home, like deadbolts, smoke alarms, and burglar alarms. 

While you won’t get a huge discount if your house has one of the following features and nothing else, they can add up if you have several protective devices in your home. Here is the average annual rate and average discount percentage for homes in New Mexico with deadbolts, smoke alarms, or burglar alarms.

Discount

Average yearly cost

Dead bolt

$1,785

Smoke alarm

$1,785

Burglar alarm

$1,715

Home insurance companies in New Mexico for dog owners

Dog owners may be on the hook for higher yearly premiums as well. Insurance providers view certain dog breeds as aggressive or dangerous since they’re statistically more likely to injure someone, so you’ll likely have to pay higher rates if you own one.

With an average rate of $1,581 per year, Farmers has the cheapest home insurance rates in New Mexico for a home with a dangerous dog breed, while State Farm’s average yearly premium of $2,003 is the highest. 

Company

Average yearly cost

Farmers

$1,581

State Farm

$2,003

Home insurance companies in New Mexico for poor credit

A poor credit score can also have negative impacts on your home insurance rates. Insurance providers perceive homeowners with low credit scores as more likely to file claims for small damages, so they’ll often increase rates on customers with poor credit to account for this heightened risk.

With an average rate of $2,684 per year, Farmers has the cheapest home insurance rates in New Mexico for a homeowner with poor credit, while State Farm’s average yearly premium of $3,436 is the highest. 

Company

Average yearly cost

Farmers

$2,684

State Farm

$3,436

Home insurance companies in New Mexico for pool owners

Pool owners in New Mexico may also face higher home insurance premiums. Backyard pools put homeowners at higher risk of filing a liability claim, so some insurance providers charge higher premiums to offset that risk.  

With an average rate of $1,634 per year, Farmers has the cheapest home insurance rates for New Mexico homes that have a swimming pool, while State Farm’s average yearly premium of $2,003 is the most expensive.

Company

Average yearly cost

Farmers

$1,634

State Farm

$2,003

How to buy homeowners insurance in New Mexico

Here are a few steps to follow as you shop for homeowners insurance in New Mexico: 

  1. Reach out to a licensed Policygenius agent. Our team of license insurance experts are ready to help you find the right coverage at the right price.

  2. Ask about New Mexico's FAIR plan coverage options. If you are at higher risk of hurricane or flood damage, ask your Policygenius agent about getting coverage through the New Mexico FAIR Plan. 

  3. Figure out how much you can afford to pay for your deductible. You'll want to determine the potential for multiple claims each year and how much you can afford to pay out of pocket each time you do file. 

  4. Compare quotes from a Policygenius agent. Once you get your coverage needs established and input a couple details about your home, a Policygenius agent will walk you through quotes from multiple companies to help you find the right policy at the best price. 

Choose your policy, sign it, and pay your first premium. The only thing left to do is sign your policy and pay your first premium. A Policygenius agent will complete all the paperwork for you and can even cancel any of your existing policies.

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Frequently asked questions

How does homeowners insurance in New Mexico compare to the national average?

The national home insurance average is $1,899 per year. New Mexico residents pay, on average, around $100 less than that. The difference is due to a lot of different factors and can vary depending on what area of New Mexico you live in.

How can I lower my homeowners insurance in New Mexico?

You can lower your homeowners insurance in New Mexico by taking advantage of discounts offered through your home insurance company. This might mean bundling your home and auto policies together for discounts, or adding security systems to your home.

Is it mandatory to have homeowners insurance in New Mexico?

New Mexico does not have state or local laws that require homeowners to purchase or carry homeowners insurance. Mortgage lenders, on the other hand, almost always require it as a condition of securing a loan.

Methodology

Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:

  • Dwelling: $300,000

  • Other structures: $30,000

  • Personal property: $150,000

  • Loss of use: $60,000

  • Liability: $300,000

  • Medical: $1,000

All rates based on the above coverage limits except where otherwise noted.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.