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Last updated on May 19, 2020

Best Homeowners Insurance Companies in New Mexico

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New Mexico’s annual premiums for homeowners insurance are on the lower side — on average $982 per year for an HO-3 policy, compared to the nationwide average of $1,173. 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:

Heads up: Coverage and pricing vary.

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What Does Homeowners Insurance Cost in New Mexico?

Average annual premium in New Mexico : $982

$982
$0 $2,500
U.S. Average
$1,173

New Mexican homeowners have fairly limited choices when it comes to home insurance which restricts options for finding a policy that works best for homeowners.

Our team reviewed all available providers to find two insurance companies that will cater to the needs of most homeowners in the state. We looked at market share, coverage policies, discounts, and more to generate our recommendations.

We selected Farmers Insurance and State Farm as the best providers of home insurance in New Mexico.

The 2 Best Homeowners Insurance Companies in New Mexico

Farmers
State Farm
Our review
Our review
AM Best Financial Strength Rating
A
A++
J.D. Power Overall Customer Satisfaction Score
3/5
3/5
Online Quote Tool
Compare rates
Compare rates

All information accurate as of 04/08/20.

Average Cost of Homeowners Insurance in New Mexico

The average premium for homeowners insurance in New Mexico is $1,017, which is a little lower than the national average premium of $1,211, according to 2017 data sourced from the National Association of Insurance Commissioners (NAIC)

Actual premiums for homeowners insurance rely on many individual factors, so what a homeowner ends up paying could be more or less than the average. 

In New Mexico, the age of the home has a significant effect on the cost of a premium. Based on our data, the average premium for a house that’s five-years-old is $1,501. The average premium for houses 20, 35, and 50 years of age is $1,740—and the average across all ages is $1,680.

The Land of Enchantment is home to many historic houses and buildings, so the age of the structure will definitely factor into how much the annual premium will be for homeowners. 

Home Insurance add-ons that will further protect you

New Mexico is a landlocked state with few natural disasters—but they do occur occasionally and anyone in the market for home insurance would do well to be prepared for the worst. 

The sparse vegetation covering most of the state means that wildfires are historically uncommon—but they have become more prevalent in recent years—and homes located near one of the state’s forests could be at risk. Checking individual insurers’ policy towards wildfires is a good idea to protect your home in the long run. 

Flooding isn’t usually a concern in New Mexico, unless the home is located near a river like the Rio Grande. In the monsoon season, New Mexico’s rivers are susceptible to flash-flooding so if the house in question is near a river, checking into flood insurance is recommended. 

Unfortunately, New Mexico homeowners do experience their fair share of property crime, so looking into an insurance policy’s theft coverage is a priority for state residents. Asking about extra coverage for property theft when obtaining a quote can save you from headaches later on. 

Helpful Resources for New Mexico Homeowners

Like most states, the easiest way to get a quote for a homeowners insurance policy is by calling the insurer or using an online quote tool. Make sure to have important information on hand about the home, like the year it was built and the square footage, which affects the premium quote.

For New Mexico homeowners who are looking for more information on homeownership and insurance in the Land of Enchantment, we have compiled a few helpful resources to check out. 

The NM Homeowners Protection Bureau offers a range of information on the laws and regulations surrounding home ownership in the state, with resources on everything from condominiums to solar panels.

For homes that need accommodations for people living with disabilities, the NM Governor’s Commission on Disability includes information on the Residential Accessibility Modification Program (RAMP). 

The NM Small Business Association has plenty of links to other housing- and insurance-related programs and resources throughout the state. 

Methodology

To find the best homeowners insurance companies in New Mexico, we evaluated companies who have the largest share of the market in the state—Farmers & State Farm. 

Both of these companies are widely used in the state, serving the majority of New Mexico homeowners. We continued by examining insurers’ ratings at trusted organizations like AM Best and J.D. Power’s U.S. Property Claims Satisfaction Study. 

By digging into customer satisfaction scores, we were able to determine how well these companies meet the needs of their policyholders. We also looked at the discounts available for bundled services.

We worked with Quadrant Information Services to provide data on home insurance rates by company, state, and age of home. Quadrant makes this information available using rate data (which insurers are required to file with state Departments of Insurance). Rates are based on a sample profile created by Reviews.com for comparative purposes.

Best New Mexico Homeowners Insurance Companies

Farmers

Best Companies For
New Mexico Homeowners Insurance
Farmers
Farmers


Pros

 

  • Claims forgiveness
  • Discounts for bundled policies

 

Cons

 

  • Extra fees after premiums
  • Average customer satisfaction

 

Farmers offers three tiers of home insurance—Standard, Enhanced, and Premier. Each tier offers different coverage options, so at least one of them should fit the needs of most homeowners. The company also offers their own mobile app for policyholders.

Farmers’ policies include claim forgiveness, which means that if a policyholder has gone 5 years without a claim, the first claim will not result in the premium going up. However, Farmers does have a few fees on top of their premiums that you might have to take into account.

This company also offers “Eco-Rebuild” coverage, meaning the company will pay out up to $25,000 toward any additional cost of replacing building materials with green alternatives.

State Farm

Best Companies For
New Mexico Homeowners Insurance
State Farm
State Farm


Pros

 

  • Trustworthy financial strength
  • Comprehensive online quoting

 

Cons

 

  • Limited discounts in some states
  • Average customer satisfaction

 

State Farm earned top rankings from AM Best, which makes this insurer hard to beat when it comes to financial strength. They are one of the nation’s largest insurance companies and offer an in-depth online quote tool that helps homeowners understand exactly how much insurance they will need and what the policy will cost. 

However, the range of discounts that State Farm offers with their home insurance policies are only available in some states, so people will need to check on what’s offered in their location.

Like Farmers, State Farm only received average customer satisfaction from J.D. Power. However, as with most large insurers, this may be partly attributed to the high numbers served.

The Cheapest Homeowner Insurance Companies In New Mexico

Largest Companies by Market Share in New Mexico
Average Annual Premium
Farmers
$1,869
State Farm
$1,133

Cost of Homeowners Insurance by Age of Home

Age of Home (years)
Sample Annual Premium
5
$1,501
20
$1,740
35
$1,740
50
$1,740
Average Across Ages
$1,680

Quadrant home insurance rate data as of  12/01/2019.

These rates are a sample set meant only for general comparison. Your own premium will vary. Learn how we tested rates for the cheapest home insurance companies in our methodology.

The homeowners insurance in New Mexico runs the gamut in terms of policy prices, primarily on the basis of the age of the home. Though choices are limited to two primary providers, coverage is fairly comprehensive, which is reflected in rates.  

Homeowners looking to save on premium costs can choose discounts that may apply, such as bundling with auto, or just by paying attention to policies that may incur additional fees. . 

Remember, the average rates provided are based on general profiles, and may not reflect the actual price you will pay for your policy. The best way to find out which insurer offers the most value is to request a personalized quote from an agent or online.

Homeowners Insurance FAQ

Is homeowners insurance required in New Mexico?

Homeowners insurance is not required in New Mexico. However, if the home has a mortgage, the lender may require the homeowner to have an active home insurance policy while paying off the mortgage.

What is the cheapest homeowners insurance in New Mexico?

Based on the general profiles we created for New Mexico home insurers, State Farm has the cheapest rate, with an average annual premium of $1,133.

In our research, we found that the cheapest insurance providers in New Mexico are Farmers, and State Farm. But it’s important to remember that each home is unique, and the actual premium that a homeowner receives will be different for every home.

About the Authors

Julian is a tech and finance writer, covering stories from artificial intelligence to cryptocurrency. He lives with his wife in Albuquerque, New Mexico. Whenever he has a day off, Julian can be found at Isotopes Stadium watching the ballgame.