The Best Home Insurance in New Mexico for 2023

We found the cheapest rates and best companies for home insurance in New Mexico.
Sarah Schlichter
Kayda Norman
By Kayda Norman and  Sarah Schlichter 
Published
Edited by Caitlin Constantine

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The average cost of homeowners insurance in New Mexico is $1,790 per year, or about $149 per month, according to a NerdWallet analysis. That’s less than the national average of $1,820 per year.

We’ve analyzed rates and companies across the state to find the best homeowners insurance in New Mexico.

Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state. Even if an insurer serves your state, it may not write policies for all homes in all areas.

Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate inaccuracies in pricing data and may update rates for accuracy as new information becomes available.

We include rates from every locale in the country where coverage is offered and data is available. When comparing rates for different coverage amounts and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing.

Our sample homeowner had good credit, $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible.

The best homeowners insurance in New Mexico

If you’re looking to buy homeowners insurance from a well-rated national brand, consider one of these insurers from NerdWallet’s list of the Best Homeowners Insurance Companies.

Company

NerdWallet star rating

Average annual rate

5.0

NerdWallet rating 

$1,270

5.0

NerdWallet rating 

$2,585

5.0

NerdWallet rating 

Not available

4.5

NerdWallet rating 

Not available

4.5

NerdWallet rating 

Not available

5.0

NerdWallet rating 

Not available

*USAA homeowners policies are available only to active military, veterans and their families.

More about the best home insurance companies in New Mexico

insurance-product-card-logo

State Farm

5.0

NerdWallet rating 
Well-established insurer with a lengthy list of coverage options.

Coverage options

More than average

Discounts

Average set of discounts

NAIC complaints

Fewer than expected
insurance-product-card-logo

State Farm

5.0

NerdWallet rating 
Well-established insurer with a lengthy list of coverage options.

Coverage options

More than average

Discounts

Average set of discounts

NAIC complaints

Fewer than expected

America’s largest home insurer celebrated its 100th anniversary in 2022. One useful endorsement you may be able to add to a State Farm policy is an inflation guard rider, which automatically increases your policy limits to make sure your coverage doesn’t fall short.

State Farm offers a free Ting device as a perk for home insurance policyholders. Ting is a smart plug that monitors your home’s electrical network to help prevent fires.


insurance-product-card-logo

Farmers

5.0

NerdWallet rating 
Those seeking benefits like diminishing deductibles and claims forgiveness may want to consider Farmers.

Coverage options

More than average

Discounts

Average set of discounts

NAIC complaints

Fewer than expected
insurance-product-card-logo

Farmers

5.0

NerdWallet rating 
Those seeking benefits like diminishing deductibles and claims forgiveness may want to consider Farmers.

Coverage options

More than average

Discounts

Average set of discounts

NAIC complaints

Fewer than expected

Homeowners policies from Farmers may include two valuable types of insurance: extended dwelling and replacement cost coverage. Extended dwelling coverage gives you extra insurance for the structure of your house, while replacement cost coverage offers higher reimbursement for stolen or destroyed belongings.

Some Farmers policies also come with perks that can save you money. For example, with claim forgiveness, Farmers won’t raise your rate for a claim as long as you haven’t filed one within the past five years.


insurance-product-card-logo

Chubb

5.0

NerdWallet rating 
Perks and high coverage limits for affluent homeowners.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

Far fewer than expected
insurance-product-card-logo

Chubb

5.0

NerdWallet rating 
Perks and high coverage limits for affluent homeowners.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

Far fewer than expected

Chubb generally serves affluent policyholders with high-value homes, offering lofty coverage limits and plenty of perks. For example, the company covers water damage from backed-up sewers and drains, and pays to bring your home up to the latest building codes during reconstruction after a claim. (Many insurers charge more for these types of coverage.)

New Mexico homeowners can also sign up for free Wildfire Defense Services. These services include personalized recommendations for protecting your home and deployment of firefighters to your house if a wildfire is approaching.


insurance-product-card-logo

Amica

4.5

NerdWallet rating 
Well-established insurer known for great customer service.

Coverage options

About average

Discounts

Average set of discounts

NAIC complaints

Far fewer than expected
insurance-product-card-logo

Amica

4.5

NerdWallet rating 
Well-established insurer known for great customer service.

Coverage options

About average

Discounts

Average set of discounts

NAIC complaints

Far fewer than expected

Rhode Island-based Amica stands out for its customer service and broad range of coverage options. The company has drawn significantly fewer consumer complaints to state regulators than expected for an insurer of its size, according to the National Association of Insurance Commissioners (NAIC).

You can customize your policy with extra coverage above your dwelling limit in case your house costs more to rebuild than expected. You may also want to add coverage for damage from water backups or recovery from identity theft.


insurance-product-card-logo

Nationwide

4.5

NerdWallet rating 
For shoppers seeking a broad range of coverage options, Nationwide may fit the bill.

Coverage options

More than average

Discounts

Great set of discounts

NAIC complaints

Close to expected
insurance-product-card-logo

Nationwide

4.5

NerdWallet rating 
For shoppers seeking a broad range of coverage options, Nationwide may fit the bill.

Coverage options

More than average

Discounts

Great set of discounts

NAIC complaints

Close to expected

We like Nationwide for its wide variety of coverage options. For example, its standard homeowners insurance policy generally includes ordinance or law coverage, which can help pay to bring your home up to current building codes after a covered claim. You can add other coverage for things like identity theft and damage from backed-up sewers and drains.

Depending on how much personal assistance you need, you can get a quote for homeowners insurance on the Nationwide website or work with a local agent instead. You can also use the website to pay bills, file claims or check claim status.


insurance-product-card-logo

USAA

5.0

NerdWallet rating 
Offers perks and affordable rates for the military community.

Coverage options

Below average

Discounts

Average set of discounts

NAIC complaints

Far fewer than expected
insurance-product-card-logo

USAA

5.0

NerdWallet rating 
Offers perks and affordable rates for the military community.

Coverage options

Below average

Discounts

Average set of discounts

NAIC complaints

Far fewer than expected

USAA sells homeowners insurance to veterans, active military members and their families. If that description fits you, you may want to consider a USAA policy. That’s because the company’s homeowners insurance has certain features that other insurers may charge extra for.

For example, USAA automatically covers your personal belongings on a “replacement cost” basis. Many companies pay out only what your items are worth at the time of the claim, which means you may not get much for older items. USAA pays enough for you to buy brand-new replacements for your stuff.


How much does homeowners insurance cost in New Mexico?

The average annual cost of home insurance in New Mexico is $1,790. That’s 2% less than the national average of $1,820.

In most U.S. states, including New Mexico, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.

In New Mexico, those with poor credit pay an average of $3,065 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 71% more than those with good credit.

Average cost of homeowners insurance in New Mexico by city

How much you pay for homeowners insurance in New Mexico depends on where you live. For instance, the average cost of home insurance in Albuquerque is $1,300 per year, while homeowners in Las Cruces pay $1,220 per year, on average.

City

Average annual rate

Average monthly rate

Alamogordo

$1,325

$110

Albuquerque

$1,300

$108

Belen

$1,300

$108

Carlsbad

$1,890

$158

Clovis

$1,890

$158

Deming

$1,300

$108

Espanola

$1,300

$108

Farmington

$1,195

$100

Gallup

$1,205

$100

Hobbs

$1,890

$158

Las Cruces

$1,220

$102

Los Lunas

$1,300

$108

Rio Rancho

$1,205

$100

Roswell

$1,570

$131

Santa Fe

$1,235

$103

The cheapest home insurance in New Mexico

Here are the insurers we found with average annual rates below the New Mexico average of $1,790.

Company

NerdWallet star rating

Average annual rate

5.0

NerdWallet rating 

$1,270

Foremost

4.0

NerdWallet rating 

$1,525

What to know about New Mexico homeowners insurance

New Mexico homeowners will need to consider several high-risk hazards when looking for home insurance, including windstorms, wildfire, flooding and earthquakes.

Windstorms

Windstorms are common in New Mexico and can result in damage to homes and uprooted trees. Damage caused by extreme winds is typically covered in a standard home insurance policy. However, read your policy closely, as you may have a separate wind and hail deductible. These deductibles are often a percentage of your dwelling coverage, such as 1% or 2%. If your house has $250,000 worth of dwelling coverage and a 1% wind deductible, you’d have to pay for the first $2,500 of wind damage yourself.

Wildfire

New Mexico is prone to wildfires, especially during dry and hot periods. Estimates put 86% of all property in New Mexico at risk of being affected by wildfire in the next 30 years. As a result, homeowners in high-risk parts of New Mexico are finding it difficult to insure their homes.

Standard homeowners insurance typically covers damage caused by fire, but residents of high-risk areas should read their policies closely to make sure they understand any exclusions. Pay particular attention to the dwelling coverage limit, which is how much the insurance company will pay to rebuild your house. Check with your insurer to ensure you have enough coverage to rebuild if necessary. Learn more about home insurance and wildfires.

Flooding

While flooding may not happen frequently in New Mexico, heavy rain and flash floods can still pose risks. Standard homeowners insurance policies typically do not cover flood damage. As a result, homeowners in flood-prone areas may need to purchase separate flood insurance.

To learn more about your flood risk, check out the Federal Emergency Management Agency's flood maps or visit RiskFactor.com, a website from the nonprofit First Street Foundation. Even if your property is deemed low risk, it may be worthwhile to purchase flood insurance for extra peace of mind.

You can purchase flood coverage at any time, but there’s typically a 30-day waiting period before the insurance takes effect. Here’s more information about flood insurance and waiting periods.

Earthquakes

New Mexico is seismically active, though earthquakes are relatively infrequent in the state. Still, the earthquakes that do happen are becoming stronger, bringing with them the potential to damage homes. Standard homeowners insurance policies do not typically cover structural damage due to an earthquake. For that, you’d need additional earthquake insurance.

If you buy earthquake insurance, pay attention to the deductibles, so you know the potential out-of-pocket costs. Earthquake insurance often has a separate deductible, which can be 10% to 20% of your dwelling coverage. For example, if you have a 20% earthquake deductible and $200,000 of dwelling coverage, you would need to pay $40,000 for earthquake damage before your insurance covers anything.

New Mexico insurance department

The New Mexico Office of Superintendent of Insurance oversees the state’s insurance industry and provides consumer information and protections. In addition to providing FAQs about the insurance industry, the office is a resource if you need to file a complaint against your insurer with an online complaint form. You can also contact the Consumer Assistance Bureau at 505-827-4549.

Looking for more insurance in New Mexico?

Amanda Shapland contributed to this story.

Frequently asked questions

Home insurance is not required by New Mexico state law. However, your lender may require you to purchase home insurance. For more information, read Is Homeowners Insurance Required?

Insurers are increasingly hesitant to cover wildfires due to the high risk of New Mexico. It’s important to read your coverage closely or investigate alternative insurance options, such as New Mexico’s Fair Access to Insurance Requirements (FAIR) plan.

There are several ways to save money on home insurance in New Mexico:

  • Shop around to make sure you’re getting the best rate.

  • Choose a higher deductible. In case of any claims, you’ll pay more out of pocket, but your premiums will be lower.

  • Bundle your home and auto insurance for a lower overall rate. See the best home and auto insurance bundles.

  • Ask your insurer if you qualify for any home insurance discounts.

Methodology

NerdWallet averaged rates for 40-year-old homeowners from various insurance companies in every ZIP code across the state. All rates are rounded to the nearest $5.

Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1984. They had a $1,000 deductible and the following coverage limits:

  • $300,000 in dwelling coverage.

  • $30,000 in other structures coverage.

  • $150,000 in personal property coverage.

  • $60,000 in loss of use coverage.

  • $300,000 in liability coverage.

  • $1,000 in medical payments coverage.

We made minor changes to the sample policy in cases where rates for the above coverage limits or deductibles weren’t available.

We changed the credit tier from “good” to “poor,” as reported to the insurer, to see rates for homeowners with poor credit.

These are sample rates generated through Quadrant Information Services. Your own rates will be different.

Star rating methodology

NerdWallet’s homeowners insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, coverages, discounts and online experience. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our full homeowners insurance rating methodology.

Complaint methodology

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. To assess how insurers compare with one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

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