What to Know about Homeowners Insurance

in New Mexico

Facts about Homeowners Insurance in New Mexico

Homeowners are not required by law to insure their property. However, if you still have a mortgage or are taking out a home equity loan, your lender will require you to have a home insurance policy. A good home insurance policy can shield New Mexico property owners from large financial losses due to potential hazards such as wildfires, hail, severe storms, property crimes, and liability lawsuits.

More New Mexico home insurance facts

  • In 2012, the Whitewater-Baldy Fire burned nearly 300,000 acres in New Mexico.
  • $40 million was paid out in property insurance claims following a 2007 hailstorm in Albuquerque.
  • Each year, nearly 18,000 burglaries are reported in this state.
  • NM residents collect about $338 million in home insurance claims per year.

Average Cost of Homeowners Insurance in New Mexico

The national average cost of home insurance is $1,173 a year. In New Mexico, rates are significantly lower at an average cost of $982. Home insurance rates are calculated on a case-by-case basis according to several factors such as the age, size, and value of your home, the weather risks and crime rate in your ZIP code, your claims history, and even your credit score. Every insurance company has its own proprietary method for calculating rates, so comparing quotes is a good way to make sure you are getting your policy at a competitive price. Independent agents make comparison shopping easy.

Average Cost of Homeowners Insurance Per Year

average cost for homeowners insurance in new mexico

Why Choose an Independent Insurance Agent?

  • Independent agents provide trustworthy, personalized service.
  • Your local insurance professional can assist you with all of your coverage needs.
  • These agents work for you, not an insurance company, so they can shop for the best rates.

Find an independent agent in New Mexico

I looked on the internet to find an independent insurance agent, and TrustedChoice.com came up on my search. After browsing their site, I gave them a call. The conversation with them went smoothly, and the agent selection process couldn't have gone better. This is a great company and I will always refer them.

five star review Hannah of Santa Fe, NM Consumer Affairs

What’s in My Home Insurance Policy?

Your home insurance policy is designed to cover you against most of the risks you are likely to face as a property owner in New Mexico. If you own any particularly valuable property such as prized collections, antiques, or an excessive amount of jewelry, your insurance agent can help you determine whether a special endorsement is necessary for these items to be fully covered.  You can expect your homeowners insurance policy to provide coverage for:

  1. Structural damage to your home: If the structure of your home is damaged due to a covered event like a wildfire, tornado, or hailstorm, your insurance can cover the cost to repair the damage or rebuild if necessary. 
  2. Personal property damage: If your personal property in your home is damaged by a covered event such as a tornado or accidental fire, the contents coverage portion of your policy will pay to replace your damaged items.
  3. Losses due to property crimes: Your home insurance can cover losses due to burglary, vandalism, and arson. The burglary rate in New Mexico is nearly double the national rate, so this coverage is particularly important. 
  4. Personal liability lawsuits: All home insurance policies include liability insurance to cover legal fees, court costs, and damages if you are responsible for someone else’s injuries, property damage, or financial losses.
  5. Temporary displacement expenses: If a covered event such as a tornado or hurricane-force winds damages your home and leaves it uninhabitable until repairs are made, your insurance can cover your temporary housing costs.

Be aware that flood damage is not covered by homeowners insurance. Many properties in New Mexico are at risk for flooding, so be sure to talk to your insurance agent about the benefits of supplementing your home insurance policy with flood insurance through the National Flood Insurance Program (NFIP).

Top Insurance Companies That Support Independent Agents in New Mexico

Looking for the best homeowner insurance policy? There are currently 146 independent insurance agents in New Mexico who are ready to help. These agents are free to work with several different insurance companies, so they can obtain a selection of customized home insurance quotes that you can review together. Let a local independent agent help you find the best policy to meet your coverage and budgetary needs.

Why go Independent

Why Go Independent When Looking for Homeowners Insurance?

  • Agents research for you
  • Insurance you can understand
  • Multiple quotes