Best New Mexico Homeowners Insurance Quotes (2024)

State Farm offers some of the cheapest homeowners insurance policies in New Mexico, with annual premiums starting at $2,280.

Jessica Martel
Written byJessica Martel
Jessica Martel
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.

Ashley Cox
Edited byAshley Cox
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Ashley CoxSenior Managing Editor
  • 7+ years in content creation and management

  • 5+ years in insurance and personal finance content

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Andrew Huang
Data reviewed byAndrew Huang
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Andrew HuangVP, Marketing & Analytics
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Updated July 1, 2024

Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.

The average annual cost of homeowners insurance in New Mexico is $3,362 for a policy with a $1,000 deductible and $300,000 in dwelling coverage, according to Insurify data. The price increases to $4,348 for $400,000 in dwelling coverage.

Megafires are becoming more common in the state of New Mexico. The largest fire in the state’s history started in 2022 during a drought.[1] As New Mexico contends with more wildfires, homeowners who live in high-risk areas could see an increase in their insurance rates. Homeowners in the highest-risk areas might have to turn to state-mandated insurance companies, like New Mexico’s Fair Access To Insurance Requirements (FAIR) plan.

Here’s what you should know about comparing home insurance quotes and finding affordable coverage in New Mexico.

Quick Facts
  • New Mexico wildfires are on the rise due to droughts and rising temperatures. 

  • It’s becoming more difficult for some New Mexico residents to insure their homes or businesses against wildfires.    

  • The average annual cost of home insurance for $300,000 in dwelling coverage in New Mexico is $985 higher than the national average of $2,377.

Best home insurance companies in New Mexico

If you’re looking for home insurance in New Mexico, plenty of quality companies serve local homeowners. The best homeowners insurance for you depends on your individual situation and needs. Start your search with the companies listed below.

Insurance CompanyIQ 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.
Average Annual PremiumBest For
State Farm4.1$2,280Cheapest rates
Foremost2.6$2,302Vacant home coverage
Allstate4.1$2,608Optional coverage
Travelers3.9$3,170Green homes
  • Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.

    We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.

    • Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
    • Customer satisfaction: To calculate this score, Insurify analyzed more than 28,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
    • Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
    • Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
    • Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.

Cheapest rates: State Farm

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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.
9.3/10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
842
$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.
$114/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.
$156/mo

State Farm has been selling insurance products for more than 100 years. Today, the company offers home, auto, life, and business insurance. If you’re looking for affordable home insurance, State Farm offers homeowners some of the lowest average rates in New Mexico.

Pros
  • Cheapest home insurance rates in New Mexico 

  • Above-average J.D. Power customer satisfaction rating

Cons
  • Fewer discounts than some competitors

  • Have to work with an agent to get insurance

Best insurer for vacant home coverage: 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.
7.4/10
$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.
$155/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.
$278/mo

Foremost Insurance Company was founded in 1952 and is a member of the Farmers Insurance Group. The company offers a variety of insurance products, including auto, marine, motorcycle, off-road vehicle, RV, and homeowners coverage. The company also has a wide range of home insurance products, including mobile home, landlord, condo, seasonal, and vacant home insurance. Vacant home insurance covers houses that are unoccupied for a certain time, typically 30 days. With Foremost vacant home insurance, you can find specialized coverage for as long as you need.

Pros
  • Offers a variety of specialty insurance options

  • Covers homeowners that don’t qualify for standard insurance

Cons
  • No online quotes available in New Mexico 

  • Parent company Farmers ranked below average in J.D. Power’s 2023 U.S. home insurance study

Best insurer for optional coverage: Allstate

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.
8.9/10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
833
$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.
$149/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.
$205/mo

In business since 1931, Allstate offers several types of property insurance, including homeowner, rental property, condo, mobile and manufactured home, and landlord. It also has a variety of optional homeowners coverages, such as water backup, yard and garden coverage, and insurance for musical instruments and sports equipment.

Pros
  • Wide selection of discounts

  • Online quote option

Cons
  • Below-average J.D. Power customer satisfaction rating

  • Below-average J.D Power property claims satisfaction rating

Best insurer for green homes: Travelers

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.
9.0/10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
829
$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.
$118/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.
$177/mo

Travelers has been selling insurance for more than 165 years. Today the company offers a wide range of insurance products for individuals and businesses. For homeowners that have invested in “green materials,” Travelers offers a 5% discount for homes that earn “green” certification from the Leadership Energy and Environmental Design (LEED) organization. The company also offers green home coverage, which provides extra protection to cover the cost of repairing, replacing, or rebuilding with green materials.

Pros
  • A++ (Superior) AM Best financial strength rating

  • Long history in the insurance industry

Cons
  • Below-average J.D Power customer satisfaction rating

  • Below-average J.D Power property claims satisfaction rating

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Cheapest home insurance in New Mexico

State Farm provides the cheapest home insurance in New Mexico. The average cost for $300,000 in dwelling coverage is $2,280 per year, or $190 per month.

Before choosing the home insurance company that’s right for you, make sure you compare multiple companies. The table below provides the average home insurance rates for some of the cheapest insurers in New Mexico.

Insurance CompanyAverage Annual Premium
State Farm$2,280
Foremost$2,302
Allstate$2,608
Travelers$3,170
Farmers$6,604

Cost of homeowners insurance in New Mexico

The average cost of homeowners insurance coverage in New Mexico is $3,362 for $300,000 in dwelling coverage, according to Insurify data. Many factors influence the cost of homeowners insurance in New Mexico, including:[2] 

  • Where you live: New Mexico insurers look at your ZIP code when determining your insurance premiums. They want to know if you live close to a fire department, if there’s a high crime rate, and if your area is prone to certain weather events.    

  • Your home’s construction: The type of material your home is made of can also affect the cost by 5% to 15%. For example, you might find it cheaper to insure a brick home because it’s more wind resistant. But if you live in an area with earthquakes, a wooden house is a better option.[3]  

  • Your home’s age: Home insurance premiums often increase as homes age because there’s more risk. For example, the home might have an older roof or older pipes, which can increase the chance of a leak. 

Cost of homeowners insurance by dwelling coverage amount

Dwelling insurance, also known as Coverage A, covers the physical structure of your home. This is typically part of standard coverage in a homeowners policy and can also include coverage for permanently attached structures, such as a deck or garage. Specific coverages can vary. 

A dwelling insurance policy is typically based on your home’s replacement cost. This is how much it would cost to rebuild the physical structure of your home based on the current cost of materials and labor. Your policy’s dwelling coverage amount should align with your replacement cost. In general, the more it costs to replace your home, the higher your premiums will be.

The table below shows how the dwelling coverage amount you choose can affect your annual home insurance premiums for a policy with a $1,000 deductible.

Coverage LimitAverage Annual Premium
$100,000$1,406
$200,000$2,389
$300,000$3,362
$400,000$4,348
$500,000$5,256

Cost of homeowners insurance by deductible

A homeowners insurance deductible is the amount of money you have to pay out of pocket before your insurance pays for a covered claim. When you purchase insurance, you typically have several deductible options. Generally, the higher your deductible, the lower your monthly premium.  

The following table highlights how your average annual premium can change based on the deductible amount you choose. Rates are for a policy with $300,000 in dwelling coverage.

Deductible AmountAverage Annual Premium
$500$3,435
$1,000$3,362

How to get cheap homeowners insurance in New Mexico

If you’re looking for the best ways to keep your homeowner’s insurance as cheap as possible, these are some things you can do:[3] 

  • Increase your deductible. If you can afford to increase your insurance deductible from $500 to $1,000, you can potentially save up to 25%. 

  • Bundle insurance products. Purchasing multiple insurance products, such as home and auto insurance, from the same company can help you save anywhere from 5% to 15% on your premium.  

  • Improve home security. Adding home safety and security features, such as smoke detectors or burglar alarms, can help you secure discounts. Some companies will reduce your premium by 15% to 20% if you install a sprinkler system and a fire and burglar alarm that contacts emergency services.

  • Look for discounts. Most insurance companies offer a range of discounts, which can include home improvement discounts, non-smoker discounts, new homebuyer discounts, or a bundling discount.   

  • Compare multiple insurers. Getting quotes from at least three insurance companies can help you find the one that best fits your needs and budget.

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How much homeowners insurance do you need in New Mexico?

Most mortgage lenders require borrowers to purchase a home insurance policy. Different insurance policies provide different coverage, so it’s important to understand exactly what your home insurance policy covers when you buy it. 

Most standard home insurance policies include coverage for:

  • illustration card https://a.storyblok.com/f/162273/150x150/56dd10ca36/climate-change-96x96-yellow_013-flood.svg

    Structure of your home

    Dwelling coverage pays to rebuild or repair your home if it’s destroyed or damaged.

  • illustration card https://a.storyblok.com/f/162273/x/48eec53b65/desk.svg

    Personal property

    Personal property coverage protects the contents of your home, such as clothing, furniture, and sporting equipment.

  • illustration card https://a.storyblok.com/f/162273/x/c5c97ffe6d/health.svg

    Liability

    Liability insurance covers you if someone is hurt on your property or if your pet causes damage to the property. It can also pay if you’re liable for someone else’s injuries or property damage when you’re away from home.

  • illustration card https://a.storyblok.com/f/162273/150x150/ef16468ce5/buildings-96x96-orange_svg-019-hotel.svg

    Additional living expenses

    Additional living expenses, or loss of use coverage, pays for costs like your hotel if you can’t live in your house due to a covered disaster (such as damage from a fire).

Keep in Mind

While standard policies usually cover damages from a disaster, there are exceptions. For instance, most policies don’t cover earthquakes, flooding, or damage due to poor maintenance. You can often purchase an additional policy or an endorsement for disasters such as earthquakes.

What are some of the biggest risks when owning a home in New Mexico? 

Extreme weather events are causing major increases in insurance premiums in New Mexico. Some of the most common perils in New Mexico include wildfires and flash floods.

  • illustration card https://a.storyblok.com/f/162273/150x150/9e462f87fd/insurify-icons-auto-orange-96x96_010-house.svg

    Wildfires

    While wildfire season is typically in May and June in New Mexico, thanks to drought and increasing temperatures, the risk of wildfires has risen throughout the year. While standard homeowners insurance typically covers wildfire damage, it’s becoming more difficult for some New Mexico residents to insure their homes or businesses against wildfires.

  • illustration card https://a.storyblok.com/f/162273/100x100/4ec24627d2/flood-coverage.svg

    Flooding

    Monsoon season follows wildfire season and generally starts in mid-June to late September. The risk of flash floods increases during monsoon season. [4][5] But standard homeowners insurance policies typically don’t cover flood damage. The National Flood Insurance Program (NFIP) offers separate flood insurance policies to homeowners, and you can also get add-on coverage through some private insurers.

To help homeowners who can’t secure insurance in the standard market, New Mexico has implemented the Fair Access to Insurance Requirements (FAIR) plan. New Mexico residents can apply for coverage through the program. 

New Mexico homeowners insurance FAQs

If you’re shopping for home insurance in New Mexico, this additional information may help as you research your coverage options.

  • How much is home insurance in New Mexico?

    Home insurance in New Mexico costs $3,362 per year for a policy with a $1,000 deductible and $300,000 in dwelling coverage, according to Insurify data. Your home insurance rate will depend on numerous factors, including your ZIP code, age of your home, square footage of your home, the coverage levels you choose, and more.

  • Which company has the cheapest homeowners insurance in New Mexico?

    State Farm has the cheapest homeowners insurance in New Mexico, with annual premiums of $2,280. Foremost and Allstate also offer affordable coverage, with respective annual premiums of $2,302 and $2,608.

  • Does New Mexico require homeowners insurance?

    No. New Mexico doesn’t require homeowners insurance. But your lender will require you to have coverage if you have a mortgage on your home. It’s important to have a policy in place so that you can afford costly repairs if a covered peril damages your home. Without insurance, you’d be on the hook financially to fix your home.

  • What is the most common type of homeowners insurance?

    An HO-3, or special form, policy is the most common type of homeowners insurance. It pays for damage to your home and personal belongings stemming from a covered event, and your liability if someone is injured on your property.

Sources

  1. Western Fire Chiefs Association. "New Mexico Fire Season: In-Depth Guide."
  2. National Association of Insurance Commissioners. "A Consumer's Guide to Home Insurance."
  3. Insurance Information Institute. "12 Ways to Lower Your Homeowners Insurance Costs."
  4. National Weather Service. "New Mexico Monsoon Awareness."
  5. New Mexico Department of Homeland Security and Emergency Management. "Flash Flooding."
Jessica Martel
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.

Ashley Cox
Edited byAshley CoxSenior Managing Editor
Headshot of Managing Editor Ashley Cox
Ashley CoxSenior Managing Editor
  • 7+ years in content creation and management

  • 5+ years in insurance and personal finance content

Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.

Featured in

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Andrew Huang
Data reviewed byAndrew HuangVP, Marketing & Analytics
Headshot of Andrew Huang, Directory of Analytics at Insurify
Andrew HuangVP, Marketing & Analytics
  • Chartered financial analyst

  • 12+ years in data analysis and marketing

Andrew applies his vast knowledge of analytics and insurance industry trends to help inform Insurify’s content and marketing efforts.

Featured in

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