The 5 Best New Mexico Homeowners Insurance Companies
New Mexico’s annual premiums for homeowners insurance are on the low side — on average $937 per year for an HO-3 policy, compared to the nationwide average of $1,132. That said, how much you’ll pay can vary a lot depending on your home’s size, your assets, and your address. Use our tool to find your best rates:
Enter your ZIP code to see the best rates in your area:
Enchanting landscapes aren’t all that New Mexico has to offer a homeowner. The state also has some of the lowest rates for homeowners insurance in the country, ranking thirty-fourth with an average of $937 annually, significantly lower than the national average of $1,132. This is mostly thanks to the relatively low risk for natural disasters, but beware: like those intriguing desert vistas, there’s more than meets the eye for New Mexico homeowners.
For one thing, though natural disasters are infrequent, they can be swift and costly. Take, for example, the freak winter storm in 2011 that caused $55 million in claims for damages such as burst frozen pipes. A 2015 report also ranked New Mexico fifth in the nation for percentage of homes at high or extreme risk of wildfire.
Like a desert fox, you’ll need to be savvy and alert while shopping for the best New Mexico homeowners insurance. Sniff out discounts that you can get right off the bat, and be smart to keep those low premiums low (more on that below.) Hunt for endorsements for fire and water damage and keep a keen eye on coverage for those particular risks. Consider also the average premiums in your particular corner of the state. Take a quick look by using the quote tool below.
How We Found the Best Homeowners Insurance in New Mexico
In the meantime, we’ve done some of the background work to point you in the right direction. We identified the best homeowners insurance providers nationwide then took a closer look at the five largest largest providers in New Mexico by marketshare and dug around to determine the best of the best. Similar to our national search process, we:
- Evaluated coverage options and the range of discounts best suited for New Mexico
- Compared reputation and ratings for claims processing, customer satisfaction, and financial stability
- Tried out resources including online tools and educational features
- Tested the quote process for our own abode in Albuquerque
In the end, Liberty Mutual proved itself to be the best all around, but Allstate, Farmers, USAA, and State Farm will also do a fine job of insuring that foxhole of yours against desert whims and disasters.
New Mexico Homeowners Insurance Reviews
Liberty Mutual is our overall top choice for covering your pueblo, ranch, or other New Mexico dwelling. High marks for claims processing from both J.D. Power and Consumer Reports readers point to a positive reputation for timely and efficient payouts. Liberty’s financial stability ratings are not as high as others in our top five but still nothing to sneeze at: “A” from both A.M. Best and Standard and Poor’s and “stable” according to Moody’s. Where Liberty really makes its mark is in the range and number of endorsements we found mentioned — more than any other provider on our list, and they are clearly laid out on their very user-friendly website.
Liberty Mutual also excels with perks that New Mexico residents may especially appreciate. In the case of a wildfire, its Home Protector Plus coverage would provide full replacement costs for lost and damaged possessions as well as the expenses of living elsewhere while your home is being repaired or rebuilt. The company also offers 24-hour access to repair services for covered damages, which would be crucial to control water damage in a surprise cold snap that freezes the pipes. All this came standard with our policy that was quoted at $90 a month or $1,082 a year, making it the second most affordable of our options. (It was a bit more than the ridiculously low $650 annually with Farmers, but well worth the modest increase in investment.) Add to that an exclusive discount for alumni of New Mexico State University and the University of New Mexico, and this could be a match made in homeowners insurance heaven.
With all its offerings, Liberty Mutual is the company we’d want by our side in the case of disaster. The overall value could make for a good deal
With similarly sparkling customer service and a wide range of endorsements, Allstate is a worthy second choice. Its website made for a great shopping experience, among the top of our options. We loved the clear layout of coverage information and resources such as a live chat box, blog posts on FAQs, and an app for cataloging personal property, very handy in case of a an event like burglary. (According to its online Common and Costly Claims tool, we found burglary to be the most common claim in our zip code, averaging $2,973 per claim.) Dog bites (liability) are the mostly costly, coming in at $41,500 on average. All of this make us feel like we’re making a more informed decision even before getting a quote, and that eases the stress of navigating the homeowners insurance labyrinth.
What kept Allstate from the top spot for us was that we couldn’t secure that quote online. We got a message that because of the age of our home (built in the early twentieth century), it might “have additional coverage needs” and we had to speak with a real human agent. Back to the labyrinth.
Farmers reigns as the affordability king among our New Mexico options. Our Albuquerque quote process yielded the cheapest possible rates, ranging from $650 to a mere $958 at the most for the three tiers of coverage. Keep in mind that in insurance universe, cheapest does not always mean best. For example, that cheapest standard tier does not cover the contents of your home, which may come back to bite you in the case of fire or theft, but depending on your priorities, this may be a level of risk you can handle. Farmers also offered the most discounts of any of our options, including one for educators — a big thumbs up for savings.
That said, Farmers is solidly mid-line in our other categories of evaluation. Farmers ties with Allstate in claims processing ratings from J.D Power (both with a 6) but trails our top pick Liberty and USAA who snagged an 8. Also tied with Allstate in number of endorsements offered, Farmers then dipped below our top two in financial stability, with “A” from A.M. Best and “A+” from Standard and Poor’s, which are still not worrisome but lower nonetheless. Farmers gets customer service points for having a clear layout on its website, but it has fewer tools, notably lacking a feature for keeping track of personal property. Then again, you might not miss that if you go with the bargain-basement policy that wouldn’t cover your belongings anyways.
If your top priority is getting coverage at the lowest possible rates, Famers is for you. If you’re interested in a more top-shelf reputation for financial stability, customer satisfaction, and claims processing, read on.
If you are affiliated with any of New Mexico’s three Air Force bases or other branches of military service, we have some good news: you can take advantage of the impressive record of USAA. USAA dwarfed our other top four in reputation for claims processing, pulling in the highest scores from Consumer Reports for claims experience (7.5 compared to 5 for all others) and timely payments (a perfect 10.) Their ability to payout claims reliably is backed up by impeccable financial stability according to Moody’s (stable), A.M. Best (A++), and Standard and Poor’s (AA+.) All of this points to a likely excellent customer experience in which you are taken care of with all the respect and service you deserve.
For the rest of us, however, these hyped-up services remain firmly out of reach, and that pulled USAA down in our own rankings. The website is very sparse in terms of information on coverage options, endorsements, and other discounts we may qualify for. We couldn’t even get a quote for our Albuquerque abode without the proper military credentials. If you can break into this Fort Knox of homeowners insurance, please do, and let us know how great it is. In the meantime, consider the other options on our list as fine alternatives.
State Farm came in third place for most affordable quotes, conveniently completed online. At $98.62 per month or $1,187 a year, these premiums are not too far off from our top pick Liberty (which quoted us $90 and $1,082, respectively.) State Farm’s standard coverage also includes the payment of a $500 annual fire service charge, which we didn’t see mentioned anywhere else, so there could be other perks if you read the fine print of the policy you are quoted. We also appreciated the clear layout of how much we were saving (i.e. $62 annually for being claim-free and $64.33 if bundled with auto insurance) and line-by-line deductibles. We could change and update the quote to adjust for deductible amounts.
What brought State Farm down was for us was an overall lower score in customer service. They offer fewer online resources than others; though the 360 Value Tool to calculate replacement cost of your home and Home Index Tool to inventory belongings are standouts, but the lack of basics like an FAQ section and live chat box was noticeable as we shopped around. There are also fewer endorsements available to personalize your coverage, and fewer mentions of discounts compared to our other top five.
Then again, State Farm pulled in excellent ratings for financial stability, second only to USAA with an “A++” from A.M. Best and “AA” from Standard and Poor’s. Depending on your needs, State Farm could have all you want and more. Compare quotes from other area providers for your own property using the quote tool below.
Find the best homeowners insurance in your area.
Get a quote by entering your ZIP code and start saving today.
Tips To Save in New Mexico
Nice work, desert fox. You’ve hunted down the best possible protection for your home. Now, let’s make sure that your personalized, affordable coverage stays affordable. As previously mentioned, New Mexico is no place to play around with unnecessary claims; even if they are denied, your rates can increase for as long as seven years after a single claim. This means that you need to stay alert, and follow these tips to keep on top of those premiums:
- If you’re considering an in-state move, weigh the cost of premiums in your new location. Research shows that rates increase from west to east towards the Texas border, where the incidence of tornados and wildfires is generally higher. Take this into account as you shop and budget for a new home.
- Invest in home security and other protective measures. The New Mexico Office of Superintendent of Insurance reports that there is a required ten percent discount for having an “operable electronic burglar alarm” installed in your home. Wrought iron bars on all doors and windows can get you another five percent off under the same rule, so take advantage for the savings and the security against making a claim for burglary in the future.
- Avoid having to make small or frivolous claims. Take care of your home and do preventative maintenance early. Providers such as our top pick Liberty Mutual offer their own tips on locally-relevant topics such as preventing water damage from frozen pipes. Check on blogs or FAQ sections of your provider’s website for more hot tips on doing your part to keep those premiums manageable.
The Bottom Line
Liberty Mutual is the top dog when it comes to New Mexico homeowners insurance. But that doesn’t mean it will always give you the most competitive rate. The only way to find the most affordable policy possible is to compare quotes — lots of them. Use our quote tool below to get started.
Find the best homeowners insurance in your area.
Get a quote by entering your ZIP code and start saving today.