Updated: November 10, 2024
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The average cost of homeowners insurance in New Mexico in 2024 is $1,857. This rate is $566 less than the national average of $2,423.
Aside from the amount of coverage you get, credit rating has the largest impact on premiums, with a difference of $3,194 between the highest and lowest premium amounts.
If your rates have recently increased, we've also analyzed the cheapest policies in New Mexico. Remember, the insurance provider you choose can also affect your premium costs.
MoneyGeek’s home insurance calculator will give you a ballpark estimate of your cost — it’s free, no personal information required, no spam.
Rates updated:
Nov 18, 2024
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Table of Contents
To establish the average cost of homeowners insurance in New Mexico, MoneyGeek used quotes from various providers for a profile that reflects the average homeowner.
These rates reflect the average cost of home insurance in New Mexico as of 2024.
In New Mexico, the average homeowners insurance premium is $1,857 for policies with $250K in dwelling coverage, $125K in personal property and $200K in liability coverage. This average is less than the national average of $2,423. Understanding how much coverage you need is vital. Your policy should cover the complete rebuild of your home, personal property and other essentials in case of a total loss.
As coverage needs increase, so does the premium. For example, a New Mexico homeowner with $100K dwelling coverage pays an average of $937 annually, while opting for $500K dwelling coverage raises the average premium to $3,368.
| $100K Dwelling / $50K Personal Property / $100K Liability | $937 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $1,857 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $3,368 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $4,768 |
Premiums for homeowners insurance in New Mexico can vary significantly between providers even when offering similar coverage levels. For instance, a policy from Foremost Insurance may cost around $1,650 annually, while State Farm could quote closer to $2,064 for comparable protection.
While shopping for insurance, it's useful to consider that there are plenty of great providers in New Mexico. Differences in underwriting can lead to a range of premium quotes, so it's advantageous to compare options.
| Foremost Insurance | $1,650 |
| State Farm | $2,064 |
Homeowners in New Mexico with excellent credit pay an average annual premium of $1,317 for homeowners insurance, which is $540 less than the state average of $1,857. Conversely, those with poor credit face much higher rates, averaging $4,511 annually, which exceeds the state average by $2,654. This demonstrates a direct correlation between credit scores and insurance premiums, where a lower credit score can lead to substantially higher costs.
While immediate improvement of your credit score may not be feasible, taking steps to enhance it over time can result in lower insurance rates. In the interim, a practical approach is to compare insurance providers to find a more favorable rate. You can evaluate different insurers in under 15 minutes to see which will save you the most.
| Poor | $4,511 |
| Below Fair | $3,341 |
| Fair | $2,480 |
| Good | $1,857 |
| Excellent | $1,317 |
When considering the type of roof on your home, it can influence your homeowners insurance premiums in New Mexico. Materials like composition shingles, which are common, may result in standard rates. However, opting for a more durable material like tile could lead to lower premiums due to increased resistance to weather-related damage.
The materials used in the construction of your home also play a role in determining insurance costs. For instance, homes constructed with fire-resistant materials or superior construction techniques might benefit from reduced insurance rates. In contrast, standard frame construction, which is less resistant to severe weather events, typically carries higher premiums.
Use the table below to see how premiums change based on your home's materials.
| $100K Dwelling / $50K Personal Property / $100K Liability | $937 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $1,857 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $3,368 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $4,768 |
| $1M Dwelling / $500K Personal Property / $1M Liability | $6,155 |
Homeowners insuring a new construction in New Mexico are likely to pay less for their annual premium than those with existing homes. The average cost for a newly built home is $1,045, which is $812 lower than the $1,857 average for older homes. The table below displays how premiums vary between new and existing constructions, helping you find the right coverage amount for your needs.
| Existing Construction (2000) | $1,857 |
| New Construction (2023) | $1,045 |
Homeowners in New Mexico with a claim-free record for five or more years can expect to pay an annual premium of approximately $1,857 for their homeowners insurance. However, if there's been one claim filed in the past five years, the premium jumps to about $2,225, reflecting an increase of $368. For those with two claims within the same time frame, the annual cost climbs to roughly $2,416, which is $559 more than the average for claim-free homeowners. These figures highlight the financial benefit of maintaining a claim-free history.
| Claim free for 5+ years | $1,857 |
| 1 claim in past 5 years | $2,225 |
| 2 claims in past 5 years | $2,416 |
In New Mexico, wildfires and flooding are the biggest threats to homes. Wildfires are usually covered by homeowners insurance, which can be a relief if flames come near your house. However, flooding is a different story. Standard home insurance doesn't cover flood damage, so you might need extra insurance for that.
For the cities we analyzed, we found premiums ranging from $1,319 to $1,442. In Albuquerque, the annual premium is $1,442, while Las Cruces sees a lower average at $1,319. Location affects premiums due to varying risks like crime rates and weather patterns. City-based factors can significantly impact insurance costs compared to other variables.
| Albuquerque | $1,442 |
| Las Cruces | $1,319 |
Shopping for home insurance in New Mexico can be a smooth process that leads to a satisfying purchase. By being informed and proactive, you'll find that snagging a great insurance deal is well within reach. Remember, the key to success is knowing what affects your rate and how to navigate those factors to your advantage. Here's how to find the best deal for you.
Ask about bundles and other savings.
Choose a provider with good service.
A higher deductible can lower premiums.
Buy the policy that fits your needs best.
In New Mexico, homeowners may find financial benefits by bundling their home and auto insurance policies. With a multipolicy bundle, you could save anywhere from $283 to $549 on your combined insurance costs, which averages out to a 14.8% discount. For more in-depth information on how bundling can impact your insurance expenses, explore our detailed bundle analysis.
New Mexico residents can benefit from various home insurance discounts. To maximize savings, inquire about discounts when obtaining a quote.
Learn more about how these and other discounts can lower your premiums by exploring our guide on how to save with discounts.
The insurer with the lowest average premium for excellent credit rating in New Mexico is at $1,317. For more on cheap insurers, visit MoneyGeek's Cheapest Homeowners Insurance.
Damage from wildfires, a common natural disaster in New Mexico, are typically covered by homeowners insurance.
Flood insurance is not typically included in a standard home policy. It can be purchased through the National Flood Insurance Program or a private flood insurer, and some home insurers offer it as an endorsement.
Credit rating is the biggest factor affecting homeowners insurance prices in New Mexico, with a difference of up to $3,194 between excellent and poor credit.
On average, bundling in New Mexico can save between $283 and $549. Learn more at Best Home and Auto Bundle in New Mexico.
When navigating the intricacies of homeowners insurance in New Mexico, a wealth of resources is available to help you make informed decisions. Below is a curated list of links that offer guidance and tools for homeowners in the Land of Enchantment:
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
