New Mexico may be known as the Land of Enchantment, but its homeowners insurance rates are anything but enchanting. Coverage costs an average of $2,024 per year for $250,000 in dwelling coverage, according to 2021 data from Bankrate.com. Reviews.com analyzed the home insurance providers in New Mexico to help you find the best homeowners insurance for your needs.
The 4 Best Homeowners Insurance Companies in New Mexico
In our search for the best home insurance companies, we reviewed average annual premium information from Bankrate.com as well as available coverages, discounts, policy and company features, and third-party reviews. We found that these four companies are among the best in the state:
- Allstate: Best for Cheap Rates
- Farmers: Best for Personalized Policies
- State Farm: Best for Local Agents
- Travelers: Best for Coverage Options
Compare the best home insurance companies inNew Mexico
While our assessment revealed that these four companies offer some of the best coverage, rates, and features in New Mexico, keep in mind that the best company for you might not be on this list. Understanding your needs, shopping around, getting several quotes, and comparing different facets of companies could help you find the right option for your situation.
| Average Annual Premium for $250k in Dwelling Coverage* | AM Best Rating AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | J.D. Power Customer Satisfaction Score** J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|---|
| Pin Allstate | $1,456 | A+ | 829 | |
| Pin Farmers | $2,552 | A- | 813 | |
| Pin State Farm | $1,502 | A++ | 835 | |
| Pin Travelers | $2,585 | A++ | 800 |
Information accurate as of February 2022
*Premium data provided by Bankrate.com.
**J.D. Power 2021 Home Insurance Study. Based on a 1,000-point scale.
Allstate
Best for Cheap Rates
WHY WE CHOSE IT
Why we chose it
Pros
- Low average annual premium
- Plenty of optional coverages
- Numerous discounts
Cons
- Higher-than-average NAIC complaint index
- Lower financial strength rating than some competitors
- Lower-than-average J.D. Power claims satisfaction score
OTHER POLICIES OFFERED
- Homeowners
- Motorcycle
- Business
- Life
STANDOUT DISCOUNTS AVAILABLE
- Welcome & loyalty
- Homebuyer
- Easy pay plan
- Early signing
Farmers
Best for Personalized Policies
WHY WE CHOSE IT
Why we chose it
Pros
- Personalized coverage levels
- Local agents available
- Online claims portable
Cons
- Average premium is higher than the state average
- Lower-than-average J.D. Power customer satisfaction score
- Lower financial strength than some competitors
OTHER POLICIES OFFERED
- Collectible auto
- Landlord
- Earthquake
- Umbrella
STANDOUT DISCOUNTS AVAILABLE
- Affinity
- ePolicy
- New home
- Green certifications
State Farm
Best for Local Agents
WHY WE CHOSE IT
Why we chose it
Pros
- Local agents available
- Low average annual premium
- Superior financial strength
Cons
- Limited discounts
- Higher-than-average overall NAIC complaint index
- Fewer discounts than many competitors
OTHER POLICIES OFFERED
- Motorhome
- Condo
- Farm and ranch
- Pet medical
STANDOUT DISCOUNTS AVAILABLE
- Multi-line
- Home security
- Roofing materials
Travelers
Best for Coverage Options
WHY WE CHOSE IT
Why we chose it
Pros
- Numerous endorsements available
- Superior financial strength
- Several discounts offered
Cons
- Average premium is higher than the state average
- Below-average J.D. Power customer satisfaction score
- Below-average J.D. Power claims satisfaction score
OTHER POLICIES OFFERED
- Homeowners
- Wedding and events
- Travel
- Pet
STANDOUT DISCOUNTS AVAILABLE
- Home buyer
- Protective device
- Green home
- Loss-free
*Data provided by Bankrate.com, based on $250,000 in dwelling coverage.
**J.D. Power 2021 Home Insurance Study. Based on a 1,000-point scale.
Average Cost of Homeowners Insurance in New Mexico
In New Mexico, the average cost of homeowners insurance is $2,024 per year for $250,000 in dwelling coverage, according to 2021 data from Bankrate.com. This is quite a bit higher than the national average of $1,312 for the same amount of coverage. However, the actual price you’ll pay for home insurance is based on a number of factors, like the age of your home, the amount of coverage you need, and your claims history. Getting quotes from a few carriers could help you find the right options and price for your situation.
Top 2 Cheapest Homeowners Insurance Companies in New Mexico
| Company | Average Annual Premium* |
| Allstate | $1,456 |
| State Farm | $1,502 |
*Data from Bankrate.com for $250,000 in dwelling coverage.
Top 2 Most Expensive Homeowners Insurance Companies in New Mexico
| Company | Average Annual Premium* |
| Travelers | $2,585 |
| Farmers | $2,552 |
*Data from Bankrate.com for $250,000 in dwelling coverage.
Key Things to Know About Homeowners Insurance in New Mexico
New Mexico is no stranger to harsh conditions. Although it may not seem likely, due to the dry climate, New Mexico homeowners should be prepared for water damage. Fast-moving and fierce storms can cause damage to roofs and siding, and the occasional tornado could cause wind damage. Understanding common risks could help you choose appropriate coverages.
Home Insurance Coverage Options
Standard home insurance policies can provide decent coverage, but homeowners often personalize their coverage with add-ons or additional policies, including:
- Flood insurance: Nearly all of New Mexico’s counties are at an enhanced or high risk of flooding. Standard Homeowners insurance doesn’t cover flood damage. You may want to look into flood insurance if you live in the Land of Enchantment.
- Earthquake coverage: Large earthquakes are not common in NM, but smaller ones do happen with regular frequency. Many companies offer earthquake coverage as an endorsement, but if you are in a particularly high-risk area, you may need to buy a separate policy.
- Water damage coverage: Standard home insurance covers some types of water damage, but other types require an endorsement or separate policy. Talk to your agent about your coverage to better understand how your policy would respond to a water damage claim.
Homeowners Insurance Frequently Asked Questions
Methodology
We evaluated the companies based on their third-party agency ratings for customer experience, financial stability, as well as coverage options to determine which might be the best providers.
To compare home insurance companies across the board, we considered the following factors:
- Customer Ratings: Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using 2021 J.D. Power Home Insurance Study ratings.
- Coverage: As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available.
- Confidence: It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength ratings indicate a positive history of being able to pay out claims. We measured this using AM Best ratings.
- Customer Experience: The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the National Association of Insurance Companies National Complaint Index.
Rates are based on quoted annual premiums from Bankrate.com. These are sample rates and should be used for comparative purposes only. Your quotes may be different.
The coverage limits for home insurance rates reflect the following coverage and limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
About the Authors
Cate Deventer is a writer and licensed insurance agent. She has a Bachelor’s degree in theatre and is currently pursuing a degree in English with a concentration in professional and technical writing from Indiana University East. Her work has been featured on Reviews.com and Bankrate.com, and she’s passionate about helping people take charge of their finances. In her free time, she likes to read thrillers and sci-fi novels, garden, and toss tennis balls for her dog.
