Best homeowners insurance in New Mexico (2024)

We looked at average costs, customer service ratings, and policy options from multiple top insurers to find the best and cheapest home insurance companies in New Mexico.

Headshot of Pat Howard

By

Pat HowardManaging Editor & Licensed Home Insurance ExpertPat Howard is a licensed insurance expert and managing editor at Policygenius. Pat has written extensively about the home insurance industry and his insights as a subject matter expert have appeared in several top tier publications, including The New York Times, The Wall Street Journal, CNBC, and Reuters. Pat has a bachelor's degree in journalism from Michigan State University.

Edited by

Jennifer GimbelJennifer GimbelSenior Managing Editor & Home Insurance ExpertJennifer Gimbel is a senior managing editor at Policygenius, where she oversees all of our insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.
|

Reviewed by

Michael Reynolds, CSRIC®, AIF®, CFT-I™Michael Reynolds, CSRIC®, AIF®, CFT-I™Financial AdvisorMichael Reynolds, CSRIC®, AIF®, CFT-I™, is a financial advisor, principal and founder of Elevation Financial, host of the weekly personal finance podcast Wealth Redefined®, and a member of the Financial Review Council at Policygenius.

Updated|3 min read

Expert reviewedExpert reviewedThis article has been reviewed by a member of ourFinancial Review Council to ensure all sources, statistics, and claims meet the highest standard for accurate and unbiased advice.Learn more about oureditorial review process.

Policygenius content follows strict guidelines for editorial accuracy and integrity. Learn about our editorial standards and how we make money.

New Mexico is no stranger to expensive wildfires that can cause extensive damage to land and communities, making homeowners insurance vitally important for residents. 

The average cost of homeowners insurance in New Mexico is $1,681 per year or $140 a month, according to our latest insurance pricing analysis.

Compare home insurance rates in New Mexico

Compare the best homeowners insurance companies in New Mexico

Policygenius analyzed thousands of quotes from the largest New Mexico insurers to find the average cost of homeowners insurance with each company in 2023. We then looked at 2022 J.D. Power customer satisfaction scores and compared that with the coverage needs of New Mexico residents to find the best homeowners insurance in New Mexico.

Company

Average monthly cost

Policygenius rating

State Farm

$149

4.8 out of 5

Farmers

$132

4.5 out of 5

Methodology & why you can trust our rates

Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:

  • Dwelling: $300,000

  • Other structures: $30,000

  • Personal property: $150,000

  • Loss of use: $60,000

  • Liability: $300,000

  • Medical: $1,000

All rates based on the above coverage limits except where otherwise noted.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.

award icon

2024 Policygenius award winner

State Farm

State Farm logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.8

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Bundle home & auto

Offers extended replacement cost

All 50 states

Why we chose itchevron icon

State Farm home insurance scores a near-perfect 4.8 out of 5 thanks to its slew of coverage add-ons, high marks on J.D. Power’s customer satisfaction surveys, and strong financial stability ratings.

Pros and conschevron icon

Pros

  • Save up to $1,127 per year when you bundle your home and auto insurance

  • Excellent line-up of policy add-ons, including extended replacement cost coverage

Cons

  • No longer sells home insurance policies in California

  • 20% more complaints filed with the NAIC than other companies of its size

More detailschevron icon

Why we chose State Farm

At a time when lots of competitors are no longer insuring homes in areas prone to wildfires or hurricanes, State Farm continues to offer its relatively affordable and highly rated home insurance to homeowners in every corner of the country.

And it doesn't skimp on coverage, offering flood, wildfire, and earthquake protection — one of few competitors that offers all three insurance policies to homeowners in high-risk states nationwide.

Plus, while many competitors don't have the financial strength to pay out claims after several natural disasters in the same year, State Farm isn't one of them. It earns the highest rating possible from A.M. Best for financial strength and stability — only six insurance companies out of nearly 70 we reviewed hold this title.

How much does State Farm home insurance cost compared to the New Mexico average?

The average cost of home insurance with State Farm in New Mexico is $1,786 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This is 6% more than the state average of $1,681 per year.

How to get a quote

Online through State Farm

award icon

2024 Policygenius award winner

Farmers

Farmers Insurance logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.5

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Offers extended replacement cost

Bundle home & auto

Smart home discounts

Why we chose itchevron icon

Along with saving around 20% when you bundle your home and car insurance, Farmers also gives you access to its extensive suite of discounts, unique policy credits, and claim-free incentives that help put money back in your pocket.

Pros and conschevron icon

Pros

  • Above-average property claims satisfaction rating with J.D. Power

  • Extended and guaranteed replacement cost for your home

  • Shave $50 off your deductible each year you’re with Farmers

Cons

  • Below-average scores on J.D. Power’s digital experience survey

More detailschevron icon

Why we chose Farmers

Farmers home insurance offers a variety of coverage options and policy perks that aren't easy to come by, including:

  • Declining deductibles: Earn $50 toward your home deductible each year you have a home insurance policy with Farmers.

  • Claim forgiveness: Once you’ve gone five years without filing a claim, Farmers won’t raise your rate after that if you end up filing one.

Even more, depending on your state of residence, you can save up to 45% on your auto insurance and up to 34% on your home insurance when you bundle policies, according to Farmers.

How much does Farmers home insurance cost compared to the New Mexico average?

The average cost of home insurance with Farmers in New Mexico is $1,581 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This is lower than both the state average of $1,681 per year and the national average of $1,754 per year.

How to get a quote

Online through Farmers

Compare home insurance rates in New Mexico

How much is homeowners insurance in New Mexico?

The average cost of home insurance in New Mexico is $1,681 per year, or $140 a month, for a policy with $300,000 in dwelling coverage. This is about 4% lower than the national average of $1,754 per year. 

New Mexico homeowners insurance rates by city

Home insurance rates fluctuate within the state due to general factors like the age, size, and value of the homes. Cities that are prone to wildfires and areas of higher crime will likely see more expensive rates. No matter where you live in New Mexico, however, you are still likely to find affordable home insurance. 

Here’s a look at the average cost of home insurance in the 20 largest cities in New Mexico.

City

Average monthly cost

Average annual cost

Difference from state average (%)

Albuquerque

$124

$1,488

-11%

Las Cruces

$111

$1,334

-21%

Rio Rancho

$121

$1,447

-14%

Santa Fe

$120

$1,434

-15%

Roswell

$223

$2,676

59%

Farmington

$119

$1,427

-15%

Hobbs

$231

$2,766

65%

Clovis

$231

$2,766

65%

Carlsbad

$231

$2,766

65%

Alamogordo

$129

$1,546

-8%

Gallup

$106

$1,273

-24%

Los Lunas

$130

$1,562

-7%

Sunland Park

$115

$1,385

-18%

Deming

$122

$1,462

-13%

Las Vegas

$193

$2,321

38%

Artesia

$231

$2,766

65%

Portales

$231

$2,766

65%

Lovington

$231

$2,766

65%

Bernalillo

$129

$1,542

-8%

Silver City

$118

$1,418

-16%

Collapse table

New Mexico homeowners insurance rates by coverage amount

The table below highlights the average annual premium in New Mexico for five different levels of dwelling coverage, which is the part of your policy that covers structural damage to your home.

Generally speaking, more dwelling coverage means higher homeowners insurance rates, as shown in the table below.

Dwelling coverage limit

Average annual cost

$100,000

$732

$200,000

$1,158

$300,000

$1,681

$400,000

$2,193

$500,000

$2,765

Compare home insurance rates in New Mexico

Cheapest homeowners insurance companies in New Mexico

Based on our analysis, Farmers is the cheapest home insurance company in New Mexico, with an average annual premium of $1,393.

Here is a breakdown of the cheapest homeowners insurance companies in New Mexico.

Company

Average annual cost

Foremost

$1,581

State Farm

$1,786

Cheapest New Mexico homeowners insurance if you have poor credit

Your credit score also plays a role in your home insurance premiums. Homeowners with lower credit scores generally see higher rates, since insurers consider you more likely to file a claim.

Here are the average insurance rates for homeowners with poor credit.

Company

Average annual cost

Foremost

$2,684

State Farm

$3,436

Cheapest New Mexico homeowners insurance if you have an older home

Older and historic homes are usually more expensive to insure than newer homes. This is because insurers consider them a higher risk than newer homes since they can be fragile, their construction materials may be obsolete, and certain structural components like the roof or plumbing may not be in good shape or up to current-day code. Because of this, they'll charge higher premiums to offset the risk.

Here's the cheapest home insurance in New Mexico for a 50-year-old home.

Company

Average annual cost

Foremost

$1,663

State Farm

$1,998

Cheapest New Mexico homeowners insurance if you have a history of claims

One of the biggest factors that plays a role in your home insurance premium is your claims history. You'll typically pay more for home insurance if you have multiple claims on your record, since insurers perceive you as posing a greater risk of filing more.

Here's the cheapest home insurance companies in New Mexico for a homeowner with three claims within a five-year period.

Company

Average annual cost

Foremost

$2,187

State Farm

$2,279

How to buy homeowners insurance in New Mexico

Wildfires are a growing risk for homeowners throughout New Mexico. To make sure your home is protected, and that you don’t get stuck with expensive home repair bills, it’s important to know what coverage you need. 

Here are a few steps to follow when shopping for home insurance in New Mexico:

4 simple steps to buying home insurance in New Mexico

  1. Shop with an independent insurance marketplace like Policygenius. Our team of licensed insurance experts are at the ready to help you figure out how much coverage you need and what company offers it at the best price — all for free with no impact to your credit score.

  2. Compare quotes. Once you’ve identified your coverage needs, a Policygenius agent will send over quotes from top companies so you can review your options.

  3. Figure out how high of a deductible you can afford. A higher deductible means you’ll pay a lower home insurance premium, but it also means you'll have pay more out of pocket on each claim.

  4. Choose your policy, sign it, and pay your first premium. Once you choose a policy, all you need to do is sign on the dotted line and pay your first premium. We’ll cancel your old policy on your behalf if it hasn't expired yet.

Compare home insurance rates in New Mexico

Frequently asked questions

How does homeowners insurance in New Mexico compare to the national average?

The national home insurance average is $1,754 per year. New Mexico residents pay, on average, around $70 less than that. The difference is due to a lot of different factors and can vary depending on what area of New Mexico you live in.

How can I lower my homeowners insurance in New Mexico?

You can lower your homeowners insurance in New Mexico by taking advantage of discounts offered through your home insurance company. This might mean bundling your home and auto policies together for discounts, or adding security systems to your home.

Is it mandatory to have homeowners insurance in New Mexico?

New Mexico does not have state or local laws that require homeowners to purchase or carry homeowners insurance. Mortgage lenders, on the other hand, almost always require it as a condition of securing a loan.

Author

Pat Howard is a licensed insurance expert and managing editor at Policygenius. Pat has written extensively about the home insurance industry and his insights as a subject matter expert have appeared in several top tier publications, including The New York Times, The Wall Street Journal, CNBC, and Reuters. Pat has a bachelor's degree in journalism from Michigan State University.

Editor

Jennifer Gimbel is a senior managing editor at Policygenius, where she oversees all of our insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.

Questions about this page? Email us at .