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 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 | |
|---|---|---|---|
$149 | 4.8 out of 5 | ||
$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.
2024 Policygenius award winner
State Farm
4.8
Bundle home & auto
Offers extended replacement cost
All 50 states
Why we chose it
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 cons
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 details
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
2024 Policygenius award winner
Farmers
4.5
Offers extended replacement cost
Bundle home & auto
Smart home discounts
Why we chose it
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 cons
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 details
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
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% |
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 |
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 |
|---|---|
$1,581 | |
$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:
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.
