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Last updated on Sep 14, 2020

The Best Homeowners Insurance Companies in New Mexico

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    New Mexico homeowners don’t have many options when it comes to insurance, which means the cost of coverage is pretty high. Based on our evaluation, the best home insurance companies in New Mexico are Farmers and State Farm. Both companies have good financial strength, excellent coverage options, and a variety of discounts. 

    Keep reading to learn more about the best New Mexico home insurance companies

    The 2 Best Homeowners Insurance Companies in New Mexico

    Compare New Mexico’s top insurance companies


    Average Price AM Best Financial StrengthJ.D. Power Overall Customer Satisfaction
    State Farm$1,133A++878/1,000
    Farmers$1,869B++808/1,000

    State Farm

    State Farm offers above-average customer support along with competitive pricing and solid coverage options. For those new to home ownership, its Simple Insights blog can tell you everything you need to know about home ownership in general.

    State Farm

    Best for Fast Claim Payments

    Why we chose it

    Providing a high-quality customer experience is only one of State Farm’s strengths. It also offers good policy coverages with add-ons to allow you to customize your policy.
    • 3.75 Reviews Score
    • A++ AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 878* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • NR BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    Providing a high-quality customer experience is only one of State Farm’s strengths. It also offers good policy coverages with add-ons to allow you to customize your policy.

    Pros

    • Financially strong
    • Excellent web presence
    • 19,000+ agents nationally
    • Informative blog

    Cons

    • Limited discounts
    • Higher premiums

    Discounts available

    • Multiple policy discount
    • Fire, smoke, or burglar alarms discount
    • Impact-resistant roof discount

    Unique features

    State Farm’s comprehensive website makes it easy to get a detailed quote in minutes. You can also pay your bill, file and manage a claim, and handle most maintenance tasks either online or via the company’s app.

    *J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale

    Further Reading on State Farm:

    Farmers

    Farmers offers an unusual quoting system that features three tiers of service. Within those three tiers, you can further customize your policy if you have, say, expensive electronics or jewelry to cover.

    Farmers

    Best Pricing Options

    Why we chose it

    Those three options for your coverage allow you to choose a policy that works for your pocketbook. Even at the lowest level, you can choose higher coverages for specific items, making your policy one of a kind.
    • 3.5 Reviews Score
    • B++ AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 808* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    Those three options for your coverage allow you to choose a policy that works for your pocketbook. Even at the lowest level, you can choose higher coverages for specific items, making your policy one of a kind.

    Pros

    • Three tiers of coverage
    • Bundling discounts
    • Identity theft coverage available

    Cons

    • Sparse website
    • Not as many discounts

    Discounts available

    • Nonsmokers discount
    • Multiple policies discount
    • Professional group member discount

    Unique features

    Farmers’ three tiers — standard, enhanced, and premier — let you pick the best coverage based on cost and coverages. The highest level, premier, includes replacement cost coverage with 100% reimbursement regardless of policy limits.

    *J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale

    Further Reading on Farmers:

    Average Cost of Homeowners Insurance in New Mexico

    In New Mexico, the average cost of homeowners insurance is $1,017 per year, which is slightly less than the United States national average of $1,211. However, the actual price you’ll pay for home insurance is based on a number of factors, like your zip code, age, credit score, and more. Before you purchase home insurance in New Mexico, it’s a good idea to get quotes from a few different providers to see which company can offer the best rate.

    Home Insurance Add-Ons That Will Further Protect You

    Although New Mexico isn’t located on the coast, parts of the state still experience major flooding a few times per year. To protect your home and personal belongings from flood damage, it’s a good idea to buy a flood insurance policy. Most home insurance companies, including Farmers and State Farm, offer flood insurance policies. You can also buy coverage from the federally-funded National Flood Insurance Program. 

    The Cheapest Homeowner Insurance Companies in New Mexico

    Largest Companies by Market Share in New MexicoAverage 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

    Cheapest Homeowners Insurance Companies in New Mexico 

    • State Farm – $1,133

    Most Expensive Homeowners Insurance Companies in New Mexico

    • Farmers – $1,869

    Helpful Resources for New Mexico Homeowners

    The state of New Mexico doesn’t offer any specific resources for homeowners insurance. We recommend looking into resources provided by individual insurance providers if you need help figuring out what type of coverage and how much coverage you need. State Farm has a helpful online guide about determining your home insurance coverage and how to create a home inventory.

    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.

    Methodology

    We evaluated the companies based on their customer rating and experience, financial stability, and coverage to determine the best providers. To compare home insurance companies across the board, we then calculated a Reviews.com score based on the following:

    • Customer Ratings — Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.
    • Coverage — As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available. 
    • Confidence — It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best’s ratings, which specializes in assessing the financial strength of insurance companies.
    • Customer Experience — The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.

    About the Authors

    Elizabeth Rivelli

    Elizabeth Rivelli Contributing Writer

    Elizabeth Rivelli is a Rhode Island-based copywriter and content marketing consultant. She has expertise writing about home, auto and business insurance, and has been published in widely-read publications, including the Simple Dollar, Bankrate and Decision Data. Elizabeth holds a BA in Communications from Northeastern University in Boston.

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