The Best Homeowners Insurance in New Mexico [2023]

The average cost of homeowners insurance in New Mexico is $2,299 per year according to Insurance.com. Considering the national average sits at $2,777, New Mexico residents generally enjoy about 15-20% lower home insurance premiums.

Homeowners insurance premiums in New Mexico can differ vastly based on a few key factors:

• The age of your home: Is your New Mexico home older and more at risk of structural wear and tear?

• The square footage of your home: How big is your home? In general, larger homes cost more to insure.

• The materials used to build your home: Was your New Mexico home built using materials susceptible to rotting or structural damage?

• Building costs in your area: Insurance deals with repairs and replacement, so coverage increases with higher building costs.

• The location in which you live: What are crime rates like? How close are you to a fire department? Do you live in a flood zone?

• Any additional features: Does your house have a swimming pool or hot tub? Do you have pets, and if so, what are their breeds? Insurers will consider these things as potential risks when assessing prices.

• Your deductible: A higher deductible will lower your premium, but could cost you more if you file a claim. Ask your insurance provider about minimizing deductibles to get the best plan that suits your budget.

After extensive research, we at Expertise.com found the following insurance agencies to provide the best, comprehensive coverage in New Mexico:

USAA

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Average Annual Rate: ~ $1,784

Notes: A great option for active-duty and retired military members and their families

State Farm

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Average Annual Rate: ~ $1,822

Notes: Affordable plans and fantastic online tools, but fewer discount options

Allstate

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Average Annual Rate: ~ $1,756

Notes: Good option for new homeowners with coverage variety and bundling options

Travelers

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Average Annual Rate: ~ $2,023

Notes: User-friendly online experience and robust amount of options

Farmers

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Average Annual Rate: ~ $1,977

Notes: Unique tiered coverage and savings options, including diminishing deductibles

The cheapest homeowners insurance coverage in New Mexico is Allstate for a policy with $300,000 in dwelling and liability coverage, with a $1,000 deductible. 

However, quotes will vary depending on each person’s unique scenario. If cost is your most important factor, check Allstate’s coverage options in New Mexico first.

Below, we tackle some common questions to help you make a more informed decision about which homeowners insurance to choose in New Mexico specifically. 

• Is New Mexico Homeowners Insurance a Requirement?
• What Does Homeowners Insurance in New Mexico Cover?
• Which Additional Coverages Are Recommended in New Mexico?
• How Do I File a Complaint?

As we’ve discussed, the price you pay for New Mexico home insurance varies substantially across insurers and your living situation. 

Here are a few easy ways to reduce costs:

• Increase your deductible. Higher deductibles reduce the monthly payments to your insurer, but it may mean paying more out-of-pocket when you need to make a claim. Similarly, paying your 6-month or 1-year premium in full will lower monthly costs.

• Bundle policies. Bundling your home and auto insurance can help you save 5–20% on your premiums in New Mexico. Ask your insurance provider about which home and car insurance bundling options can help you save the most.

• Make your home disaster-resistant. Some examples include:

  • Upgrade your smoke detector and/or fire alarm.

  • Get a burglar alarm and/or dead-bolt locks.

  • Install a sprinkler system.

  • Install impact-resistant windows and/or roofing. 

• Get rid of high-risk accessories. Take an inventory of your home and get rid of any unnecessary items that are considered “high risk.” For example, when the kids go off to college, it’s a good time to throw out that trampoline in the backyard.

• Seek out other discounts. Some things to look into:

  • Do you work from home? Insurance providers may feel you’re less prone to burglary or may spot a fire or flood sooner.

  • Are you retired? You may qualify for a discount. 

  • Does your employer offer a group deal?

  • Switching to paperless billing can help you save.

  • Are you a military veteran? You may be eligible for a discount.

  • Some insurers offer loyalty discounts if you renew your policy with them.

• Keep good credit. Some insurance agencies may look at your credit history and charge less for those with good financial strength and standings.

As always, consult your insurance agent to see which of the above discounts you qualify for.

At Expertise.com, our goal is to connect New Mexico residents with the best local experts and agencies, so you can find the home insurance policy that safely insures your home and most prized possessions. 

View our list of the 14 best homeowners insurance agencies here. 

Learn more about the best homeowners insurance options in your respective New Mexico cities below:

• Albuquerque Homeowners Insurance

• Las Cruces Homeowners Insurance

• Rio Rancho Homeowners Insurance

• Santa Fe Homeowners Insurance

Our methodology evaluates each provider based on the quality and quantity of their reviews, their presence on multiple review sites, and their average minimum rating.