Best homeowners insurance in New Mexico for 2023

Compare the best homeowners insurance companies in New Mexico

New Mexico homeowners pay an average rate of $1,789 annually for $250K of dwelling coverage. This rate is above the national average and makes New Mexico one of the more expensive states for homeowners insurance.

Your personal rate is likely to be different as it is based on circumstances that are unique to you, such as your credit history and the age and condition of your home. Using data obtained from Quadrant Information Services, we determined the average premiums for New Mexico home insurance companies. Rates for companies that made our list are showcased below, along with their AM Best rating and 2022 J.D. Power U.S. Home Insurance Study score:

The top four home insurance companies in New Mexico

How Bankrate chose the best home insurance companies in New Mexico

Bankrate's editorial team assesses various metrics to find the best New Mexico homeowners insurance. We know that price is an important consideration, but it is only one of the factors you may take into account when shopping for your own policy. Customer service and financial strength ratings also play a role, as well as the breadth of coverage options and discounts available. We also look at each company's website and mobile app to see if they make it easy to do business online.

How much is home insurance in New Mexico?

The average cost of homeowners insurance in New Mexico is $1,789 for $250,000 in dwelling coverage. This is 25 percent above the national average of $1,428 a year for the same amount of coverage. New Mexico's rate may be higher than the national average because the state is prone to disasters such as wildfires, which are becoming more prevalent in the state due to climate change. New Mexico also has a higher rate of property crime, such as burglaries, than the national average. A robust policy with one of our chosen New Mexico homeowners insurance companies will help protect you from financial damages if you experience a loss.

Average annual premiums by coverage level

How to find the best cheap home insurance in New Mexico

Unlike car insurance, home insurance is not required by law in New Mexico. However, if you have a mortgage, your lender will probably require you to purchase a policy. Even if you own your home outright, it's a good idea to buy home insurance. In the event of a loss, you could find yourself with costs in the six figures that you would have to pay out-of-pocket if you didn't have insurance. Finding the best cheap home insurance can be simple with the right steps. Here is one strategy you might use:

1. Gather information on your house: When was your home built? How old is the roof? What is the square footage? You'll need this information when getting quotes.
2. Review top companies. The ones Bankrate listed here or on our cheapest homeowners insurance companies list may be good options to start with.
3. Take a look at the websites of the companies that interest you. Company websites should be easy to navigate and be information-rich. If you prefer to handle your insurance business online, see if the company has a smartphone app.
4. Gather quotes. In many cases, you may be able to get a quote from the website. For some companies, you'll need to call or visit an agent. It's a good idea to get more than one quote to see who offers you the best rate. 
5. Ensure the quotes are comparable. All the quotes you get should be for the same or similar coverage types and amounts, and include any available discounts.
6. Consider the companies’ Bankrate Scores. We compile each company’s premium and performance across different areas such as customer service, financial strength and accessibility into an easy-to-compare Bankrate Score. Once you have your quotes, you can use the score as a tool to help you narrow down your selection.
7. Complete an application for your chosen company. You may be able to do this online, over the phone or in person with an agent.
8. Wait to finalize your coverage. Once your application has been submitted, you should hear from the company shortly after. This may happen instantaneously or require more time for their underwriting decision. Once you’re approved for coverage, you will pay your first premium.

Common home insurance discounts in New Mexico

Discounts can play a significant role in lowering your premium. Many of them are easily earned and require very little work on your part. Here are a few that are common with New Mexico homeowners.

Home insurance coverage types in New Mexico

The coverage types offered in a standard home insurance policy typically include dwelling, personal property, liability, medical payments and loss of use coverage. New Mexico homeowners may also want to consider the following endorsements:

• Flood insurance: Because standard home insurance policies do not include flood coverage, some consumers decide to purchase a standalone flood insurance policy from the National Flood Insurance Program (NFIP) or through a private insurance company.
• Sump pump coverage: Sump pump coverage pays to repair clogged sump pumps and pipes. It will also pay for accidental water damage caused by backups. Sump pump and water backup coverage is not typically included in a home policy, but many insurance carriers offer it as an optional endorsement, which can be important coverage for homeowners with a basement.
• Yard and garden coverage: Yard and garden coverage will help pay to re-landscape your yard if your garden, trees, shrubs or lawn get damaged by a covered peril, including fires. Standard homeowners policies include coverage at 5% of the dwelling amount (not to exceed $500 per tree, bush or shrub), so consumers with extensive landscaping may choose to purchase additional coverage on their policy.

Frequently asked questions