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.Â
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:
- Rates by company
- Rates by coverage amount
- Rates by deductible amount
- Rates by city
- Bundling savings
- Frequently asked questions
- 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's 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.Â
AFFORDABLE HOME INSURERS INÂ 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 impacts 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 that 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 |
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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 |
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Looking for info on homeowners insurance in a specific city?
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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% |
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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.
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 are intentional damage (arson) or damage to a vacant home.
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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.Â
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.
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Sources:
1Insurance Information Institute
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Find an affordable homeowners policy in New Mexico today!
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 editorial 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.