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The Best Homeowners Insurance in New Mexico [2023]

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Find a top-ranked Homeowners Insurance Agency in your area

New Mexico is known as the Land of Enchantment for good reason. The state’s 121,000 square miles of land contain endless natural beauty — from the otherworldly Bisti Badlands to the majestical Carlsbad Caverns. 

While New Mexico offers plenty of breathtaking landscapes, there are also a handful of challenges that prospective homebuyers should be prepared for – including unexpected natural disasters and severe thunderstorms. 

If you own a home or are thinking of buying in New Mexico, it’s important to compare homeowners insurance rates and find the coverage that works best for you. 

We at Expertise.com have analyzed a handful of insurance companies. We’ll uncover everything to know about homeowners insurance in New Mexico, and help you find the most comprehensive, cheapest coverage to suit your needs.

Average Cost of Homeowners Insurance in New Mexico

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.

New Mexico Homeowners Insurance Rates by City

Given that New Mexico is the 5th largest state, it’s no surprise that its cities vary considerably by size. The average cost of your homeowners insurance policy will change depending on where you live in the state.

Below is a breakdown of the average annual rate by city:

City

Average Annual Rate

Albuquerque

Carlsbad

Farmington

Las Cruces

Rio Rancho

Roswell

Santa Fe

Taos

The Best Homeowners Insurance in New Mexico

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

USAA logo

USAA


Average Annual Rate: ~ $1,784

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

State Farm logo

State Farm


Average Annual Rate: ~ $1,822

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

Allstate logo

Allstate


Average Annual Rate: ~ $1,756

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

Travelers logo

Travelers


Average Annual Rate: ~ $2,023

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

Farmers logo

Farmers


Average Annual Rate: ~ $1,977

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

Cheapest Homeowners Insurance in New Mexico

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.

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Find Cheap Homeowners Insurance in Your Area

FAQs

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


How to Reduce Homeowners Insurance Costs in New Mexico

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.

New Mexico Insurance Options In Your City

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:

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.