Best Home Insurance Rates In New Mexico

On average, your neighbors pay $82 a month.

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Compare Homeowners Insurance In New Mexico

New Mexico is a hub of indigenous culture and art. The Land of Enchantment has the second-highest population of Native Americans of any state. However, its desert climate and mountainous areas are the cause of a number of homeowners insurance risks.

Average New Mexico Homeowners Insurance Rates

How much is home insurance in New Mexico? New Mexico has relatively affordable home insurance premiums. The average cost of homeowners insurance in the state of New Mexico is $982. That's much lower than the national average of $1,173. There are 19 states with lower average homeowners insurance rates than New Mexico.

New Mexico (NM) Average Annual Homeowners Insurance Rates
  2013 2014 2015
Nee Mexico Annual Average $898 $937 $982
New Mexico Price Per Month $75 $78 $82
US Annual Average $1,096 $1,132 $1,173
US Cost Per Month $91 $94 $98
National Rank 34 35 32
Source: Facts + Statistics: Homeowners insurance

The graph below shows the change in average New Mexico home insurance rates from 2011 to 2015, the most recent year the data is available. According to the III, New Mexico homeowners insurance rates increased from $793 in 2011 to $982 in 2015, a jump of $189 dollars, or 23.83 percent.

New Mexico average homeowners insurance rates

Choosing a homeowners insurance company in New Mexico should be easier. Actually, it’s already easy. The key to finding the best rates is to compare home insurance quotes in New Mexico from multiple companies. And the fastest, easiest way to do that is by using QuoteWizard.

Best New Mexico Home Insurance Companies

Last year, these were the most common home insurance companies reported by QuoteWizard users living in the state of New Mexico. Out of the 4,431 New Mexico homeowners that used QuoteWizard to request insurance quotes last year, 312 had no home insurance.

  1. Farmers
  2. Allstate
  3. Geico
  4. Progressive
  5. Liberty Mutual
  6. AAA
  7. USAA
  8. Hartford
  9. Safeco
  10. Travelers
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Best Homeowners Insurance Companies in New Mexico

The above list shows the most popular home insurers in New Mexico according to our users. But popular doesn’t always mean best.

Our study on the Best Homeowners Insurance Companies focuses on top of the line companies. In no particular order, these companies stand out among the rest:

  1. Amica: Best Overall
  2. MetLife: Best for Bundling
  3. Allstate: Best for Local Agents
  4. Hartford: Best for Seniors
  5. State Farm: Best for Pet Owners
  6. Travelers: Best for Flexible Policies
  7. Nationwide: Best Replacement Coverage
  8. Farmers: Best for Eco-Friendly Homes
  9. Liberty Mutual: Best for Quick and Easy Quotes
  10. Auto Owners Insurance: Best Claims Experience
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Top New Mexico Homeowners Insurance Company Market Share

Source: National Association of Insurance Commissioners
Rank Company Financial Rating Market Share
1 Farmers Insurance A 20.01%
2 Allstate A+ 10.38%
3 Liberty Mutual A 9.23%
4 USAA Insurance A++ 8.55%
5 Hartford Insurance A+ 5.09%
6 Travelers Insurance A+ 3.92%
7 Iowa Farm Bureau NR 3.44%
8 Chubb A++ 2.31%
9 Assurant A+ 2.07%
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New Mexico Home Insurance Rate Factors

Insurance companies consider several factors to calculate the cost of your homeowners insurance. Some factors, like roof maintenance, are within your control. Others, like property crime rates, are beyond your control.

Your Personal Rate Factors

Your House

The rate you’ll pay for homeowners insurance varies depending on the home. These are the main house components that influence your insurance costs:

  • Your home’s age. Old homes come with high insurance rates because as a home gets older, it can require major repairs. And those major repairs can lead to large insurance claims. Many NM residents own old homes. 8 percent of homes were built between 1970 to 1979.
  • The quality of your roof. A house with an old roof costs more to insure. If you’re looking to cut insurance costs, maintaining or replacing your roof is a good place to start. A well-maintained roof with region-appropriate material can be the difference between major and minor repairs after a disaster. In San Juan County, for example, avoid wood shingles as they’re a major fire hazard.
  • Your home’s replacement cost. Replacement cost is how much it would cost to rebuild your home from the ground up. Your home’s replacement cost should match your dwelling/structure coverage, which is a major part of a home insurance policy. A high replacement cost also means high insurance premiums. Replacement cost depends on the style and size of your home, not how much you bought it for. For example, a luxury home in Mesilla could have a lower replacement cost than a house bought for less in Albuquerque.

Claims History

Filing a claim leads to higher rates. And if you file more than one claim within a few years, your rates will skyrocket. Claims stay on your record for five to seven years. Filing additional claims during that time could lead to policy cancellation. That’s why homeowners try to avoid filing any unnecessary claims.

Pets

The type of pet you own also influences your rates. If you own an exotic pet or specific dog breed, insurers will charge you more. You could even have a hard time finding a company to insure you to begin with. According to the AVMA, New Mexico has the second highest pet ownership rate in the country.

Credit Score

Insurance carriers look at your credit score to determine your policy price. People with bad credit pay more for homeowners insurance. NM has the tenth worst average credit score in the nation.

New Mexico Rate Factors

Weather

New Mexico is the ninth most natural disaster-prone state in the nation. That’s a setback for residents, because areas with a high risk of natural disasters have high insurance rates. Weather risks also vary depending on where in the state you live. If you live in the South Valley, prepare your home for flooding. If you live near forested areas, take steps to mitigate your home’s fire risk.

No matter where in NM you live, your home could face one of these natural disasters:

  • Wildfires
  • Floods
  • Severe winter weather
  • Tornadoes
  • Earthquakes

New Mexico has a high flooding risk, and homeowners insurance doesn’t cover flood damage. Make sure you buy flood insurance.

According to DHSEM New Mexico, there are steps you can take to prepare your home for a natural disaster.

  • Buy flood insurance.
  • Repair any deep cracks in ceiling or foundation.
  • Keep branches and shrubs pruned around your home.
  • Clear rain gutters and repair roof leaks.

Property Crime

NM has the second highest average property crime rate in the country. Areas with high property crime rates have high homeowners insurance premiums. In 2017, the average property crime rate was 3,941.7 per 100,000 people. Unfortunately, property crime rates in NM rose in 2017.

Property crime rates vary depending on where in the state you live. For example, Albuquerque has an average of 70.2 property crimes annually per 1,000 residents. Whereas Silver City has an average of 10.4 property crimes annually per 1,000 residents.

Like preparing for a natural disaster, there are steps you can take to prevent a burglary in your home. These steps include: security cameras, deadbolts, alarms, and more.

Types of Home Insurance Policies

Homeowners have several policy options when shopping for home insurance. In NM, these are the insurance types you can choose from:

  • HO-1: The most basic insurance policy, it covers normal damages.
  • HO-2: This is a broad homeowners insurance policy. It covers everything in HO-1, plus falling objects and damages to AC units, pipes, and other home systems.
  • HO-3: The most popular homeowners insurance policy type. This type of insurance covers all damages unless specifically excluded. It also covers unattached structures.
  • HO-5: This is a comprehensive policy like HO-3, but it comes with more coverage and less property claim limitations. It’s considered a premium policy.
  • HO-6: Are you a condo owner? If so, this may be the best policy for you. It covers possessions and provides liability for condo owners.
  • HO-7: If you own a mobile home, this is the policy for you. It offers similar coverage as HO-3, but for mobile homeowners.
  • HO-8: If you own an older home, you may need a policy to cover its unique needs. This policy is like HO-3, but specifically for older homes.

New Mexico Office of Superintendent of Insurance

Website:
Homepage
Insurance Commissioner:
John G. Franchini
Insurance Hotline:
(855) 427 - 5674
Office Hours:
Monday - Friday
9:00 am to 5:00 pm
File a Consumer Insurance Complaint
Complaint Page

Sources:

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