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New Mexico homeowners insurance: what you need to know

The average home insurance policy in Mexico will set you back $1,661 per year or $138 per month.  This is slightly more than the national average. Home insurance is an optional — but important — product that works to keep your belongings safe in the event your home suffers damage from common incidents. The best way to find a cheap homeowners insurance policy in New Mexico is to get quotes from as many insurance companies as possible. 

Unlike auto insurance, homeowners policies aren’t priced based on state-level laws. Even so, major discrepancies exist in home insurance costs on a state-by-state basis. Homeowners costs by state differ based on the value and number of home policy claims filed across the state, and depend on the value of the belongings and structures covered by the policy.

Find out typical homeowners insurance rates in New Mexico by reviewing the below data. Remember: your rates will vary, depending on your coverage limits.

 
Table of contents:
  1. Rates by company
  2. Rates by coverage amount
  3. Rates by deductible amount
  4. Rates by city
  5. Bundling savings
  6. Frequently asked questions
  7. Natural disaster coverage
 

The cheapest home insurance companies in New Mexico

Prices for home insurance in New Mexico differ depending on which insurance company you choose. Liberty Mutual offers the most affordable homeowners insurance in New Mexico, at just $984 per year. This beats the state mean cost of $1,661, providing a $677 price cut on rates typical to the state.

Start your search for affordable homeowners coverage by viewing average rates from top New Mexico home insurance carriers, detailed below. Then, see our list of which home insurance companies ranked best for customer satisfaction

 
AFFORDABLE HOME INSURERS IN NEW MEXICO
Insurance Company Average Yearly Rate in New Mexico
Liberty Mutual $984
Safeco $1,305
Allstate $1,362
USAA $1,484
State Farm $1,636
 

New Mexico home insurance prices by coverage levels

The amount of home coverage you select has an impact on your insurance rates. Homeowners in New Mexico who carry $100,000 of dwelling coverage pay an average of $838 per year, while those with dwelling coverage of $400,000 pay around $2,242 per year.

 
POPULAR COVERAGE LIMITS IN NEW MEXICO
Coverage Level Average Annual Cost
$100,000 Dwelling $838
$200,000 Dwelling $1,241
$250,000 Dwelling $1,565
$400,000 Dwelling $2,242
 

Homeowners insurance deductibles in New Mexico

New Mexico homeowners have a lot of decisions to make when shopping for a home insurance policy, including how high or low to set their deductible. The deductible is the dollar amount that the insured must contribute toward a covered loss. Choosing your deductible impacts how much you pay for your coverage.

A good rule of thumb is: the lower your deductible, the higher your premium. Therefore, you may want to think about setting a higher deductible if you aim to secure lower rates. Remember that your homeowners deductible should not be so high that you would struggle to pay it in the event of a loss.

Below you'll find some typical deductibles offered on most home policies along with corresponding average insurance rates.

 
HOME INSURANCE PREMIUMS BY DEDUCTIBLE IN NEW MEXICO
Deductible Tier Average Annual Homeowners Insurance Rate
$500 $1,666
$1,000 $1,565
$1,500 $1,501
$2,000 $1,377
$5,000 $1,227

 

New Mexico homeowners insurance costs by city

Home insurance rates in New Mexico vary depending on the city. Policy pricing depends on local variables such as the number of claims filed nearby, giving your ZIP code weight in deciding how much you pay.

The best home insurance in New Mexico is found in Las Cruces. An average home insurance policy in Las Cruces costs just $1,111 annually — $550 less than the average homeowners policy in other New Mexico cities. Reference the below table to see the cheapest cities in New Mexico for home insurance.

 
CHEAPEST CITIES FOR HOMEOWNERS INSURANCE IN NEW MEXICO
City Average 12-Month Home Insurance Rate
Las Cruces $1,111
Los Alamos $1,124
Rio Rancho $1,133
Sunland Park $1,150
Anthony $1,151

 

Looking for info on homeowners insurance in a specific city?

 

Home and auto insurance bundling in New Mexico

If you want to save, consider buying your home and auto policies from the same insurance company. A home and auto insurance bundle in New Mexico can lead to substantial savings on auto insurance. Purchasing bundled policies in New Mexico leads to a yearly discount of $153.

 
HOME AND AUTO BUNDLING DISCOUNTS IN NEW MEXICO

Avg. Annual Rate (No Bundle)

Avg. Annual Rate (w/ Bundle)

Annual Savings ($)

Annual Savings (%)

$1,315 $1,162 $153 13%
 

 

New Mexico homeowners insurance FAQs

 

Is homeowners insurance required in New Mexico?

Unlike car insurance, there is no state mandate to carry homeowners insurance, but instead, your mortgage lender will require it when you buy a home.

Does GEICO offer homeowners insurance in New Mexico?

Yes - if you're a homeowner in New Mexico, GEICO is an option for homeowners insurance.

 

 

Natural disaster coverage in New Mexico

 

Does home insurance cover damage caused by fires in New Mexico?

Fire coverage comes standard on every homeowners insurance policy in New Mexico. If your home were to be damaged or destroyed by fire, your home insurance company would cover the damage to your property up to your policy limits. The commonality of wildfires in New Mexico reinforces the importance of homeowners insurance: 14% of New Mexico households are in danger of suffering damage from a wildfire. In fact, 382, 345 acres of the state were burned in 2018.1

Depending on your policy, your home insurance may cover additional living expenses if your home is deemed unlivable. Fire-related damages not covered by your home insurance provider is intentional damage (arson) or damage to a vacant home.

 

Does homeowners insurance cover flooding in New Mexico?

Flood damage — whether a byproduct of a rainstorm or a hurricane —is not covered by homeowners insurance policies. To insure your New Mexico home against flood damage, acquire insurance through FEMA's National Flood Insurance Program (NFIP) or via a private insurer. 

Flood insurance coverage from private companies may vary, but NFIP flood insurance covers:

  • $250,000 for your home’s structure
  • $100,000 for your personal property

If the value of your personal property and home exceeds these limits, consider purchasing a flood insurance policy from our partners at Neptune for additional protection.

 


 

Sources:

1Insurance Information Institute

 


 

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Kristine Lee photo
Kristine LeeManager, Content and Data

Kristine is a licensed insurance agent who joined The Zebra in 2019 as an in-house content researcher and writer.

She is an authority on all things insurance and covers the ins and outs of auto, home, life and renters insurance. Her specialty is in providing data-backed insights and information to help insurance shoppers make informed decisions.

Kristine's insurance expertise and research have been cited by publications such as CNBC, Car and Driver, Business Insider, Yahoo!, The Balance, Nationwide and Elephant.

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.

  • The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.

  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.

  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.