New Mexico Homeowners Insurance

 
New Mexico
Homeowners Insurance

Residents in New Mexico pay an average of $82 per month or $982 per year in home insurance premiums. 


There are  almost 1 million homes in the Land of Enchantment, sixty-eight percent of which are owner-occupied.

The average monthly cost for a homeowner with a mortgage in NM is $1,244.

Residents in New Mexico pay an average of $82 per month or $982 per year in home insurance premiums. 


There are  almost 1 million homes in the Land of Enchantment, sixty-eight percent of which are owner-occupied.


The average monthly cost for a homeowner with a mortgage in NM is $1,244.

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Compare insurers to find the cheapest rates around.

 

New Mexico Statistics*

2,095,428

Population

$163,900

Average value of owner-occupied housing units

770,435

Households

$46,718

Average household income

85%

High school grad or higher, percent of people age 25 years +

22 min

Average travel time to work

*Data from the U.S. Census Bureau


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New Mexico is a state encompassing mountains and deserts. The arid climate makes New Mexico less exposed to natural disasters. As a result, homeowners insurance in New Mexico has been low over the years. In 2012 for example, the average premium in the Land of Enchantment was just $884. This was $200 less than the average national premium that same year.


In New Mexico, homeowners do not typically have to worry about property damage by natural calamities. However, other factors such as vandalism and theft are prevalent in the state. New Mexico's Department of Public Safety has recorded in recent years, high numbers of larceny and burglary. As a matter of fact, New Mexico, a few years ago, was top of the list in the FBI's most burglarized states. The Santa Fe New Mexican reports that NM ranked 1st for burglary and robbery, and 2nd for car theft, just behind Alaska, nationwide, although it is an improvement from 2016 data.The crime rate, therefore, affects the price of homeowners insurance.

Home insurance premiums in New Mexico


Home insurance rates in New Mexico are relatively affordable. According to Information Insurance Institute (III), in 2015 (latest available data), the average homeowners insurance rate is $982 while the national average is $1,173. New Mexico’s average premium is therefore below the national premium. The price of premium per month translates to $82 for NM residents. In 2014, the average homeowners insurance rate in New Mexico was $937 which shows that the 2015 state average increased by $45 in one year. Nationally, New Mexico was ranked 32nd in state premiums out of 51 states in 2015.The data by III clearly shows that premiums have a rising trend over the years.

Average New Mexico home insurance premiums

 201620152014
Monthly average$83$82$78
Annual average$996$982$937
National annual average$1,192$1,173$1,132
Rank333235
Source: The annual average premiums came from the Insurance Information Institute's latest recorded data. We calculate the estimated monthly insurance costs based on the data provided.

Our top three homeowners insurers in New Mexico


The following are our top homeowners insurance companies in the Land of Enchantment. We are not able to review all of the home insurers in the state, therefore, it's possible that a company not mentioned in this article may be better suited for your needs.


State Farm


State Farm controls 20 percent of the total homeowners insurance in New Mexico. The total percentage reveals that State Farm is a popular choice amongst homeowners in New Mexico. That percentage is backed by an A++ (Superior) rating from AM Best. State Farm is an excellent company to have when trouble strikes.


The company has a 24-hour hotline that consumers can use to file a claim. A customer can also decide to go online and talk to the insurer’s agents directly. Online filing of claims is easier because State Farm provides a handy PocketAgent app on the phone. While online, it is also possible to run an inventory of all possessions covered by the insurance using State Farm’s Home Index tool. The inventory tool improves accuracy and efficiency in filing claims.


State Farm’s Premier Service Program vets contractors to carry out any necessary repairs in all homes. The repairs are inclusive of flood repairs and pipe damages. By using professionals, State Farm returns your home to habitable conditions.


State Farm does not discriminate. The company offers standard insurance to ranches/farms, mobile homes, and single-family homes. Policies are designed with endorsements. Endorsements cover identity theft, any personal injuries as well as home offices and work studios.


The companies Discount Double Check feature offers deductions on premiums that homeowners are eligible to. State Farm, therefore, provides quality insurance that are quite affordable.


Farmers


New Mexico homeowners have many opportunities and an excellent record in claims response from Farmers. It is, therefore, a popular and affordable option for homeowners in the state. It controls 18.8 percent of the homeowners insurance market share in New Mexico, second to State Farm.


Farmers have average premium cuts for owners of green homes. Recently, the company did home to home inspections of smokers and non-smokers homes. After that, the company provided innovations to improve the efficiency of all homes.


For homeowners who have roof troubles, Farmers also provides savings for roof replacements. That means homeowners pay less premium when replacing roofs after a disaster. Homeowners who want to replace their roofs should be aware that Farmers give discounts for such.


In the case of claims management, Farmers have the best tools in the industry. Claims can be made through phone calls, through online platforms or even in person. For online filing, the Farmer’s claims mobile app makes it very simple. Once Farmers management gets the claim, it is specially tracked until a resolution is found. The tracking is done using their online tool, Claims Tracker.


Liberty Mutual


Liberty Mutual’s diverse network offers many benefits to homeowners in New Mexico. It controls 10.1 percent of the total market share. Many homeowners who have a goal of saving on their premium should choose Liberty Mutual. Farmer’s large network includes 50,000+ in 2017 throughout the country.


Policy rates of the company are affordable because they offer discounts. The rates are made even more affordable through deductions on premiums for home policy bundles. Besides, when a homeowner obtains a new quote before the last one expires, Liberty still offers them deductions on premiums.


Liberty is a good insurance company to have on your side when your home suffers a disaster. That’s because Liberty Mutual offers 24 hours, 365 days emergency service repairs. Through a representative, Liberty Mutual links a homeowner with a contractor to do all the repair services. For one whole year, Liberty Mutual guarantees quality insurance services to each and every homeowner.

New Mexico home insurance companies: Market share and summary of ratings

RankInsurerMarket share %AM BestS&PJD Power
1State Farm20.1A++AA3
2Farmers18.8AA3
3Liberty Mutual10.6AA3
4USAA10.1A++AA+5
5Allstate8.8A+AA3
6Hartford3.9AA3
7Travelers3.7AA3
8Farm Bureau3.5A-NR3
9Munich Re2.7A+AA-NR
10Chubb2.5A++AA3
NR: Not rated
Source: Insurance Information Institute, AM Best, S&P, JD Power

A summary


Even though New Mexico's average annual premium is generally low, other factors may come into play so that homeowners may pay different rates in the same state. For example, homeowners in Albuquerque most likely pay more premium than those living in rural New Mexico. Other things like the age of the home and its location make insurance rates differ from one homeowner to another.


In New Mexico, the limits for payment of personal property are specified under Special Limits in the policy. Usually the limit on loss by theft stands at $2,500 for gold and gold ware plus silver and silver ware. Loss by theft of expensive furs and jewelry stand at $1,500. New Mexico is known for issues of theft and burglary. Such information is therefore very important for homeowners in New Mexico.

An overview

Home insurance is a necessity that every homeowner should purchase. After all the effort you have put in by making the down payment on the house and paying the monthly mortgage installments, it would be heartbreaking and bank-breaking to see your beloved home destroyed or damaged by a natural disaster. For a reasonable annual rate, you will be protecting your home and your family from such unforeseen events.


Residents of New Mexico benefit from one of the cheaper home insurance averages in the United States. At an average of $982 annually for NM homeowners insurance cover – this is way below the national average that stands at $1,173. This means it is the perfect time to look for the best homeowners insurance to protect your home at a cheaper cost although your own individual rate may fall below or above the state’s average as quotes are highly dependent on individual factors.

New Mexico home insurance hazard protection


Homeowners insurance caters for any damages that occur to the exterior, interior, and contents of your house if an earthquake, lighting, an explosion, a landslide, heavy snow, heavy wind, ice or any natural disaster strikes. Additionally, the policy covers repair and replacement of the property lost through robbery, theft, vandalism, smoke or fire.


Saving on New Mexico home insurance


Here are some tips on how to save money on New Mexico homeowners insurance:


Look for cheap New Mexico insurance


When it comes to getting the right insurance cover, you need to search for different coverage options as well as the level of protection. The first thing to consider is the area you live in. Remember, home insurance isn't only meant for those who own homes. There are covers tailored to townhouse owners, apartment owners, and condominium owners that suit your needs. The amount of coverage is another factor to consider. There are a couple of limits available on structural homeowners insurance and content protection.


Compare homeowners insurance rates from different insurers


Whether you are looking to switch homeowners coverage carriers or you are purchasing your first home, a simple search on the internet will give you all the information you need about New Mexico home insurance quotes as well as options to consider. By stating your needs, you will immediately be connected to different New Mexico insurance agencies as well as insurance policies that can cater to your needs. Take a keen look into various coverage plans at your own pace by using our free comparison tool which provides you with a list of homeowners insurance providers in your area.


For more assistance, please contact your local state department of insurance:

NM Office of Superintendent
of Insurance

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