The Best New Mexico Homeowners Insurance
Finding affordable homeowners insurance in New Mexico shouldn’t be too difficult — the state is at a lower risk for natural disasters than most, leading to lower costs on average. Weather isn’t the only factor that goes into premiums though. New Mexico’s Department of Public Safety records live yearly crime statistics as reported by each county and precinct across the state and the numbers show a clear issue: burglary and larceny. Just a couple years ago, New Mexico even topped the charts of the FBI’s most burglarized states. All these factors make choosing the right homeowners insurance in New Mexico even more important. You need to make sure that your home and the valuables within are well protected, and you want to feel confident that should the worst happen, your provider will be standing ready.
How We Found the Best New Mexico Homeowners Insurance
We started with the top insurers of property and casualty insurance by market share across the state, narrowed them down to the top 4 individual-consumer focused contenders, and then began evaluating them. Our methods were proven in our review of national homeowners insurance companies — providing a holistic look into financial stability, customer service, tools and resources, and coverage. However, every home and homeowner are unique in their own way and every zip code can contain its own quirks and inconsistencies. This means our findings may differ from yours. The only way to truly know your best option is to understand your unique risks, thoroughly vet your home’s needs, and contact a few insurers to get quotes and compare.
The 4 Best Homeowners Insurance Companies in New Mexico
New Mexico Homeowners Insurance Company Reviews
Outside exclusive service providers like USAA, Liberty Mutual brings some of the highest ratings in customer satisfaction and claims fulfillment in the industry. While excellent service is a constant feature across all of our top picks and recommendations, Liberty Mutual brings the full suite of educational materials, helpful endorsements, and available discounts. Their MasterThis blog hosts tons of handy tips, tricks, and guides. Comprehensive protections like Home Protector Plus, add an extra layer of security that can make all the difference in times of trial, even going as far as to pay for a place to stay while your home is being repaired.
Liberty Mutual offered us the highest coverage for personal property losses when we secured our online quotes. Liberty Mutual also steps up when it comes to protecting your intangible property by offering endorsements like Identity Fraud Expense Coverage. You can also receive great discounts, including one for newly built or renovated homes. With well-rounded policy options and fantastic customer service ratings, Liberty Mutual is a great place to start shopping for homeowners insurance. Liberty Mutual also has great financial stability ratings from A.M. Best, Standard & Poor’s, and Moody’s, so you know the company can handle the cost of paying claims if a big natural disaster does hit your area.
Farmers is an excellent choice for New Mexicans in need of homeowners insurance. Scoring just one point below Liberty Mutual on overall claims satisfaction from Consumer Reports. Other than that, Farmers matches Liberty Mutual in financial strength, J.D. Power rankings, and customer service quality. Farmers also matches Liberty Mutual with quality educational materials, including an interactive house that lets you explore the typical threats each part of your home might face. Its catalog of frequent questions is vast and full of useful answers and its coverage options are easy to navigate.
You can get a variety of discounts from Farmers with opportunities to save hundreds on your premiums. In our evaluation of quotes from the top providers, Farmers offered us the highest dwelling coverage at the lowest price — $732 per year in comparison to Liberty Mutual’s $1,284 price tag. Importantly, Farmers offers a great price break if you use a monitored security system — a recommendation worth noting in order to secure your home, valuables, and leverage a lower price for quality homeowners insurance. Using any one of these monitored security system would qualify you for a discount.
Travelers offers all the essential coverages, like water back-up and valuables replacement, to keep any New Mexico home well protected. However, the company does fall behind on available discounts, not offering some standard deductions like loyalty savings or association discounts (think AAA members). However, Travelers does offer a discount for monitored security systems just like our other top players.
With a solid customer service reputation, Travelers is neck-and-neck with Farmers when it comes to both J.D. Power’s overall satisfaction as well as Consumer Reports’ claims experience scores. Unfortunately, Travelers doesn’t quite boast the educational repertoire of Farmers, or an excellent app experience like Liberty Mutual – its current app does not include any home insurance features.
USAA is the absolute standard for quality service and customer care, not to mention the pinnacle of financial stability as reported by all of the top financial evaluators. If its policies were open to the general public, USAA would take home top honors every time. Consistently ranking as the number one provider in nearly every aspect of the claims process, USAA is the complete package. The only reason it’s not our top pick is that you or an immediate family member need to be an active or retired member of the military in order to open an account. And if you want in-depth information on the available coverages, discounts, or special options available you’ll need to contact a representative personally to see if you’re eligible to proceed. But if you are eligible, USAA is an excellent option for homeowners insurance.
Guide to New Mexico Homeowners Insurance
Shopping around will always pay off
We put together quotes from three of our top providers (you can’t get a quote from USAA without military credentials). Each insurer estimates the coverage you’ll need based on the information you provide them during the quote process. All of these coverages are adjustable in the purchasing process, but we kept the initially recommended coverages to assess each company’s focus. When an insurer estimates a greater Personal Property coverage than Dwelling coverage, they are essentially saying they assume your home’s internal assets like furniture and fixtures are at a greater risk than the physical structure itself.
*USAA requires active or former military service in order to even start the quote process. If you have access to their services, pursue a quote for comparison.
Right off the bat, we have to address Liberty Mutual’s significantly higher premium. Liberty Mutual boasts an impressive source of educational tools and information as well as a first class app. Such services contribute to their higher premiums but it may actually have more to do with their understanding of New Mexico and the unique claims profile of the state. Crimes of theft — both petty and grand — are on the rise throughout the state. And while New Mexico is relatively clear of weather-related disasters, it still has its fair share of events. You’ll notice that Liberty Mutual was the only provider to decrease dwelling coverage and assume a far greater personal property coverage to keep us protected from the possible loss of our belongings due to not-so-natural circumstances. Of course, detailed mapping of your home’s interior as well as the cataloging of your valuable possessions will allow a much more accurate estimation of your specific coverage needs, and likely save you a lot of hassle in the long run.
Recent trends can influence rates
Each and every insurer we got quotes from asked us specifically if we installed “iron bars” on our windows — a likely reaction to New Mexico’s rise in burglary-related crimes, some violent ones. And while low on natural disasters compared to the rest of the country, New Mexico is far from immune to weather-related damage. Allstate’s Common and Costly Claims tool marks fire damage as the most expensive claim in the state, and water damage as the most common. Fire coverage is standard across all quality policies, but you should evaluate your specific threat level and ask about extra protection if it’s a concern to you. When it comes to water, especially flooding, it doesn’t take much rain to create a real issue in a desert environment. Farmers offers a great write-up on how they assess flood threat levels as well as how National Flood Insurance Program regulates coverages and policies.
New Mexico Homeowners Insurance FAQ
What does homeowners insurance cost in New Mexico?
Your annual premiums will be affected by a variety of factors, including your address, the age of your home, and more. On average, though, New Mexico homeowners pay $982 per year for an HO-3 policy — about $200 less than the nationwide average. Always check with multiple providers to ensure the best chance of finding a good rate.
Should I bother with flood insurance in New Mexico?
Don’t think that the mostly-desert terrain of New Mexico eliminates the threat of a flood. Often, the desert terrain can fail to absorb much of the rainfall leading to an increased amount of runoff. This can cause nearby rivers and lakes to rise beyond their capacity. Don’t underestimate New Mexico’s potential for flooding.