Best Homeowners Insurance Companies in New Mexico (2026)
Allstate, State Farm, and Farmers are three of our top picks for home insurance in New Mexico.
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Written byJessica Martel
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Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.
Jessica has been a contributor at Insurify since July 2023.
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Edited bySara Getman
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Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.
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Reviewed byJohn Leach
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Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
John is Insurify’s Chief Copy Editor, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.
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Data reviewed byChase Gardner
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Data expert on auto trends and driver behavior
University of Chicago graduate with statistics degree
Chase spearheads analytics for Insurify’s data insights team. With his deep expertise in insurance data, Chase is often interviewed on industry trends.
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Table of contents
The average annual cost of homeowners insurance in New Mexico is $2,616 for $300,000 in dwelling coverage with a $1,000 deductible, according to Insurify data. This is similar to the national annual average of $2,544.
New Mexico homeowners are vulnerable to several natural disasters, including wildfires, flash flooding, and high winds. Some top insurers are refusing to renew coverage for residents living in high-risk areas.
Homeowners struggling to find insurance can turn to New Mexico’s Fair Access to Insurance Requirements (FAIR) Plan, which offers last resort insurance with policy coverage limits of up to $750,000.[1]
Here’s what you need to know to find the best home insurance in New Mexico.
Quick Facts
The best companies for New Mexico homeowners include Allstate, Foremost, and Travelers.
Allstate is the cheapest home insurance company in New Mexico, with an average rate of $174 per month.
New Mexico has the second-highest rate of uninsured homes in the country, behind Mississippi.[2]
Best home insurance companies in New Mexico
New Mexico has many quality insurance companies to choose from. But the best home insurance company for you will depend on your individual needs, situation, and budget.
To help narrow down your search, here are five of the top insurance companies in New Mexico.
Allstate: Best for budget-friendly rates
AllstateCompare personalized, real-time quotes
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.2/10 |
|---|---|
| A.M. Best A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor). | A- |
| $300,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $174/mo |
| $500,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $268/mo |
If you’re looking for affordability, Allstate offers New Mexico homeowners some of the cheapest home insurance rates. Allstate has a wide range of insurance options, including water backup, green improvement reimbursement, and musical instrument coverage.
To help protect your yard from heavy New Mexico windstorms, Allstate offers yard and garden coverage, which increases the limits for the cost of trees and landscaping.
Pros
Wide range of optional insurance coverages
Good selection of discounts
Online insurance quotes available
Cons
Below-average J.D. Power customer satisfaction score
Below-average J.D. Power claims satisfaction score
Low Trustpilot score
State Farm: Best for customer satisfaction
State FarmCompare personalized, real-time quotes
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.2/10 |
|---|---|
| A.M. Best A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor). | A++ |
| $300,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $200/mo |
| $500,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $273/mo |
If you’re looking for an insurer with strong customer service, check out State Farm. With above-average customer satisfaction scores and agents available in cities across New Mexico, you can find local, face-to-face service. State Farm also offers several ways to save on homeowners insurance coverage with bundling, home security, and impact-resistant roofing discounts.
Pros
Above-average J.D. Power customer satisfaction score
AM Best financial strength rating of A+ (Superior)
Network of local agents
Cons
Fewer discounts than some competitors
Below-average J.D. Power claims satisfaction score
Low Trustpilot score
Farmers: Best for discounts
discounts
Farmers
Compare personalized, real-time quotes
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.4/10 |
|---|---|
| A.M. Best A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor). | A |
| $300,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $278/mo |
| $500,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $450/mo |
Farmers makes it easy to save with a wide range of home insurance discounts, including home security, auto-pay, and green discounts. If you bundle your homeowners with an auto insurance policy, you can save up to 10%. Farmers also offers several optional coverages, including water backup and sump pump overflow, valuable items, and identity fraud expense coverage.
Pros
Wide range of discounts and coverage options
Online quotes available
Offers guaranteed replacement cost coverage
Cons
More expensive than competitors
Below-average J.D. Power customer satisfaction score
Below-average J.D. Power claims satisfaction score
Travelers: Best for green homes
TravelersCompare personalized, real-time quotes
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 7.8/10 |
|---|---|
| A.M. Best A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor). | A++ |
| $300,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $220/mo |
| $500,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $324/mo |
New Mexico offers many financial incentives to homeowners who want to invest in green home updates. If you’ve taken advantage of these incentives and want to protect them, Travelers offers an add-on coverage option that helps cover the cost to repair, rebuild, or replace green materials.
Pros
AM Best financial strength rating of A++ (Superior)
Wide range of coverage and add-on options
Online claims filing
Cons
Fewer discounts than some competitors
Below-average J.D. Power customer satisfaction score
Below-average J.D. Power claims satisfaction score
Foremost: Best for hard-to-insure homes
hard-to-insure homes
Foremost
Compare personalized, real-time quotes
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 5.2/10 |
|---|---|
| A.M. Best A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor). | A |
| $300,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $218/mo |
| $500,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $394/mo |
If you’re struggling to qualify for standard homeowner insurance, Foremost offers a wide range of coverage options to fit most homeowners’ needs. Whether you’re trying to insure a mobile home, secondary home, or an aging home, Foremost offers customizable coverage to fit your unique needs.
In addition to standard coverage, Foremost offers add-ons, including water backup, equipment breakdown, and replacement cost coverage.
Pros
Network of local insurance agents
Wide range of coverage options
Seasonal and secondary home insurance coverage options
Cons
Below-average J.D. Power customer satisfaction score
Fewer discounts than competitors
No online quotes
Our editorial team analyzed dozens of regional and national home insurance companies that sell policies in New Mexico to assess which offer the best rates, coverage options, customer service, and savings to homeowners. We prioritized competitive rates, 24/7 customer service, homeownership discounts or bundling options, and specialty or supplemental coverages.
Cheapest home insurance in New Mexico
The cheapest home insurer in New Mexico is Allstate, with an average cost of $174 per month for a policy with $300,000 in dwelling coverage and a $1,000 deductible.
To find the most affordable homeowners insurance rates for you, it’s best to compare multiple companies. The table below lists the average monthly rates for some of the cheapest insurers in New Mexico.
The below rates are estimated rates current as of: Sunday, February 1 at 11:00 AM PST.
Data reviewed by Chase Gardner
Data expert on auto trends and driver behavior
University of Chicago graduate with statistics degree
Chase spearheads analytics for Insurify’s data insights team. With his deep expertise in insurance data, Chase is often interviewed on industry trends.
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Insurance Company  | Average Annual Premium |
|---|---|
| Allstate | $1,125 |
| State Farm | $1,293 |
| Foremost | $1,409 |
| Travelers | $1,422 |
| Farmers | $1,797 |
Find Cheap Home Insurance in New Mexico
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How much does homeowners insurance cost in New Mexico?
The average annual cost of home insurance in New Mexico is $2,616 for $300,000 in dwelling coverage with a $1,000 deductible, according to Insurify data. In comparison, the national annual average is $2,544.
Insurance companies use various factors to calculate your rates, including your ZIP code, credit history, claims history, coverage type, chosen deductible, and the age of your home. Exposure to different weather risks, including wildfires, flooding, or wind, can also affect your home insurance premiums in New Mexico.
Cheapest home insurance companies in New Mexico by dwelling coverage
Dwelling insurance covers the physical structure of your home. In some cases, it can also cover permanently attached structures like a deck or garage.
The table below highlights the average annual premiums for dwelling insurance for different New Mexico home insurers.
The below rates are estimated rates current as of: Sunday, February 1 at 11:00 AM PST.
Data reviewed by Chase Gardner
Data expert on auto trends and driver behavior
University of Chicago graduate with statistics degree
Chase spearheads analytics for Insurify’s data insights team. With his deep expertise in insurance data, Chase is often interviewed on industry trends.
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Insurance Company | Average Annual Premium |
|---|---|
| Allstate | $737 |
| Foremost | $860 |
| Travelers | $976 |
| State Farm | $1,008 |
| Farmers | $1,215 |
The below rates are estimated rates current as of: Sunday, February 1 at 11:00 AM PST.
Data reviewed by Chase Gardner
Data expert on auto trends and driver behavior
University of Chicago graduate with statistics degree
Chase spearheads analytics for Insurify’s data insights team. With his deep expertise in insurance data, Chase is often interviewed on industry trends.
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Insurance Company | Average Annual Premium |
|---|---|
| Allstate | $1,125 |
| State Farm | $1,293 |
| Foremost | $1,409 |
| Travelers | $1,422 |
| Farmers | $1,797 |
The below rates are estimated rates current as of: Sunday, February 1 at 11:00 AM PST.
Data reviewed by Chase Gardner
Data expert on auto trends and driver behavior
University of Chicago graduate with statistics degree
Chase spearheads analytics for Insurify’s data insights team. With his deep expertise in insurance data, Chase is often interviewed on industry trends.
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Insurance Company | Average Annual Premium |
|---|---|
| Allstate | $1,732 |
| State Farm | $1,765 |
| Travelers | $2,094 |
| Foremost | $2,547 |
| Farmers | $2,909 |
The below rates are estimated rates current as of: Sunday, February 1 at 11:00 AM PST.
Data reviewed by Chase Gardner
Data expert on auto trends and driver behavior
University of Chicago graduate with statistics degree
Chase spearheads analytics for Insurify’s data insights team. With his deep expertise in insurance data, Chase is often interviewed on industry trends.
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Insurance Company | Average Annual Premium |
|---|---|
| Allstate | $2,217 |
| State Farm | $2,230 |
| Travelers | $2,941 |
| Foremost | $3,853 |
| Farmers | $4,338 |
New Mexico homeowners insurance cost by city
Home insurance rates can vary widely between states, cities, and even ZIP codes. Factors such as the risk of exposure to wildfires or flooding, the proximity to a fire station, and local crime rates can cause variability between cities.
The table below shows average annual premiums for different cities in New Mexico.
The below rates are estimated rates current as of: Sunday, February 1 at 11:00 AM PST.
Data reviewed by Chase Gardner
Data expert on auto trends and driver behavior
University of Chicago graduate with statistics degree
Chase spearheads analytics for Insurify’s data insights team. With his deep expertise in insurance data, Chase is often interviewed on industry trends.
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City | Average Annual Premium: With $300,000 in Dwelling Coverage |
|---|---|
| Santa Fe | $1,500 |
| Albuquerque | $1,704 |
What homeowners should know about insurance in New Mexico
Disasters can happen anywhere, and New Mexico is no exception. While you can’t prevent a natural disaster from occurring, you can protect your home and personal belongings with the right coverage.
Unfortunately, many New Mexico properties aren’t properly prepared for a disaster. New Mexico has the second-highest rate of uninsured homeowners in the country, behind Mississippi.
Some of the top risks for homeowners in New Mexico include wildfires, flash flooding, and wind.
Wildfires
Several counties in New Mexico are at high risk for wildfires.[3] While a standard policy typically covers damages due to wildfires, you might find it difficult to get coverage if you live in a high-risk area. In this case, you can look for insurance through New Mexico’s FAIR Plan, which offers last-resort coverage.
Flash flooding
In New Mexico, thunderstorms can bring heavy rainfall that leads to flash floods. While flash floods can occur during any month, they’re more common during the monsoon season (June to September).[4] A standard homeowners policy doesn’t cover water damage from flooding.
You can find extra coverage through the National Flood Insurance Program.
Wind
High winds are common in New Mexico, especially in April and May, and can cause damage to your home and landscaping.[5] Standard homeowners insurance typically covers wind damage to your home, but not damage to trees or plants.
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How much homeowners insurance do you need in New Mexico?
New Mexico doesn’t require you to have home insurance, but your mortgage lender will. To ensure you have the proper coverage, it’s important you understand exactly what your home insurance policy covers and what it doesn’t.
For example, flooding is common in New Mexico, but most standard homeowners policies don’t cover flooding. You may need to purchase additional insurance to protect your home.
You should aim to have enough dwelling insurance to cover the cost of rebuilding your home if it’s destroyed in a disaster. To estimate your rebuilding cost, you can multiply the square footage of your home by your local square-foot building costs. You can contact a local realtor or building association to find this information.[6]
Once you have a rough number on how much it would cost to rebuild your home, you can follow the 80/20 rule. This means you should insure your home for at least 80% of its replacement cost, otherwise your insurer may not fully cover claims.
Good to Know
To estimate how much insurance you need to cover your personal property, including furniture, clothing, sporting equipment, and collectors’ items, you can create a home inventory checklist, then add up the values. A checklist is also very helpful if you ever have to make a claim.
How to contact the New Mexico Department of Insurance
The New Mexico Office of Superintendent of Insurance oversees and regulates different types of insurance in the state. The OSI also licenses the agencies and people who sell insurance in New Mexico.
If you have an issue with your home insurance company, you can contact the OSI for assistance by phone at 1 (855) 427-5674 or by mail at: P.O. Box 1689, Santa Fe, NM 87504-1689. You can also contact the OSI online using its generic questions, concerns, and complaints form.
New Mexico homeowners insurance FAQs
Getting the right insurance is important for your home and your wallet. Check out answers to some of our most frequently asked questions about home insurance in New Mexico.
How much is home insurance in New Mexico?
Home insurance in New Mexico costs an average of $2,616 per year for $300,000 in dwelling coverage with a $1,000 deductible, according to Insurify data. You might need to purchase additional coverage for flooding because standard homeowners insurance doesn’t cover flood damage.
Which company has the cheapest homeowners insurance in New Mexico?
Allstate offers the cheapest homeowners insurance in New Mexico, with an average monthly premium of $174.
Does New Mexico require homeowners insurance?
No. New Mexico state law doesn’t require homeowners to have home insurance, but your mortgage company will.
How can you lower your home insurance premiums in New Mexico?
To lower your home insurance premiums in New Mexico, consider raising your deductible, bundling multiple insurance products such as home and car insurance, and comparing quotes from multiple insurers.
How much is insurance on a $400,000 house?
The average cost of insurance for policyholders with a $400,000 house in New Mexico is $287 per month, or $3,444 per year, according to Insurify data.
What does home insurance cover in New Mexico?
A standard homeowners policy in New Mexico covers the structure of your home, your personal belongings, personal liability coverage, and additional living expenses. ALE coverage is activated if you have to move out of your house while it’s being rebuilt or repaired due to a covered peril.[7]
Methodology
Insurify data scientists analyzed rates from more than 180 home insurance companies sourced directly from Insurify’s partner companies and Quadrant Information Services. Rates span all 50 states and Washington, D.C., and quote averages represent the mean price for a given coverage level and geographic area. To ensure data reliability, only insurers meeting minimum quote thresholds were included in the analysis.
Unless otherwise specified, quoted rates reflect the average cost for homeowners with no prior claims and good credit with a home construction year of 1980. The default coverage assumptions include:
Default Coverage Assumptions
- Dwelling coverage: $300,000
- Deductible: $1,000
- Personal property limit: $25,000
- Liability limit: $300,000
Additional data points beyond these default values are sourced from Insurify’s proprietary database. Rates are updated monthly.
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Sources
- NM OSI. "New Mexico Office of Insurance Superintendent Highlights Benefits of NM FAIR Plan."
- Consumer Federation of America. "A Report on 1.6 Trillion Dollars of Uninsured American Homes."
- NM WRAP. "The New Mexico Wildfire Risk."
- Weather.gov. "NWS ABQ Monsoon Awareness."
- Weather.gov. "NWS ABQ High Wind Climatology."
- III. "How much homeowners insurance do I need?."
- III. "Homeowners Insurance Basics."
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Jessica Martel
Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.
Jessica has been a contributor at Insurify since July 2023.
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
John is Insurify’s Chief Copy Editor, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.
Featured in
Data expert on auto trends and driver behavior
University of Chicago graduate with statistics degree
Chase spearheads analytics for Insurify’s data insights team. With his deep expertise in insurance data, Chase is often interviewed on industry trends.
Featured in