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The Best Cheap New Mexico Homeowners Insurance for 2024

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Buying home insurance is an essential step homeowners must take to protect their biggest investment -- and their peace of mind. New Mexico home insurance rates tend to be fairly affordable, but savvy shoppers willing to compare rates from several companies usually get the best deals. Here are some of the best homeowners insurance providers in New Mexico to consider.

  • Cheapest overall for New Mexico: Foremost
  • Cheapest for new home construction: Foremost
  • Cheapest for older homes: Foremost
  • Cheapest for homeowners who have filed a claim: Foremost

Cheapest overall for New Mexico

The average New Mexico homeowners insurance policy costs about $1,402 per year. But Foremost, part of the Farmers Insurance Group, insures New Mexico homes for about $1,069 per year on average.

Not too far behind is State Farm, which charges New Mexico homeowners about $1,735 per year on average.

Cheapest for new home construction

Foremost also tops the list of the best homeowners insurance in New Mexico for new construction. Its average annual premium is $713, which is over $100 below the state average of $842 per year.

State Farm customers pay a bit more, but they can still get coverage for new homes for around $971 per year.

Cheapest for older homes

A typical 50-year-old New Mexico home costs about $1,344 to insure. But once again, Foremost offers cheaper homeowners insurance in New Mexico for these houses. Its average rate for these homeowners is just $1,070.

Older home owners can also find great coverage with State Farm. Its average annual premium for these homes is $1,618.

Cheapest for homeowners who have filed a claim

Homeowners who have previously filed a claim face the highest average New Mexico insurance premiums at about $1,442 per year. Once again, Foremost and State Farm stand out as some of the best homeowners insurance companies for this group.

Foremost charges homeowners with a single past claim about $1,037 per year while State Farm charges them around $1,847 per year.

Average home insurance cost in New Mexico compared to the national average

New Mexico home insurance rates fall slightly below the national average. However, the actual cost to insure a home depends on several factors, including its size, construction, age, and the owner's claims history.

Average Rate Category New Mexico National Average
Overall $1,402 $1,725
New home construction $842 $943
Older homes $1,344 $1,658
When making a claim $1,442 $1,803
Data source: Quadrant data.

New Mexico homeowners insurance overview

Here are some things all New Mexico homeowners should be aware of when shopping for coverage:

The average New Mexico home costs about $248,670

The average home price in New Mexico is about $248,670, according to The Ascent's research on average home price by state. The national average is $293,349. These below-average prices may help contribute to New Mexico's below-average home insurance rates.

But those with larger, more-expensive homes can expect to pay more. The same goes for homeowners living in areas prone to natural disasters.

Homeowners living near the Texas border usually pay more

The five most expensive New Mexico cities for home insurance (listed in the table below) are all located near the Texas border. Homeowners who live in this area may want to take some extra time to compare homeowners insurance quotes to ensure they're getting the best possible deal.

What are the most common homeowners insurance claims in New Mexico?

Here are some of the most common homeowners insurance claims filed in New Mexico:

Wildfire damage

New Mexico has seen some of its largest wildfires in history in recent years. These storms can be extremely costly because they can destroy entire towns, leaving little to nothing behind. Those living in wildfire-prone areas typically pay more for homeowners insurance.

There are some things homeowners can do to reduce their risk of filing a wildfire claim, like trimming away brush from around the home. But sometimes, there isn't anything a homeowner can do to stop this kind of damage. That's why it's key for homeowners to review their policy's coverage limits. It should provide enough protection to pay for a full rebuild, if necessary.

Flood damage

Monsoon season can trigger flooding or even flash flooding in New Mexico, especially in low-lying areas. This can damage or destroy personal property and weaken the foundations of homes. That's part of why floods are among the most expensive home insurance claims.

Many people don't know this, but floods actually aren't covered under a typical homeowners insurance policy. Homeowners interested in coverage must purchase a separate flood insurance policy if they don't want to pay out of pocket for flood damages. Lenders may require homeowners with mortgages to purchase flood insurance if they live in a flood-prone area.

Earthquake damage

New Mexico also sees many earthquakes every year. While most of these are small, a large earthquake can bring down buildings, especially if they're older and don't meet modern building codes. They can also cause damage to water and gas lines, which can lead to additional problems.

Most homeowners interested in earthquake protection must purchase an earthquake endorsement for their policy. This may include a separate earthquake deductible that's higher than the typical homeowners insurance deductible. Homeowners must meet this earthquake deductible before their insurance company will pay anything for the damages.

Homeowners insurance coverage options and discounts in New Mexico

New Mexico homeowners can save by taking advantage of the following home insurance discounts:

Bundling can save homeowners nearly $450 per year

Bundling home and auto insurance is the best way to save on homeowners insurance with nearly every company. In New Mexico, this will save homeowners about $442 per year on average.

Paying in full offers surprising savings

The simple act of paying a homeowners insurance premium all at once rather than in monthly installments can help homeowners save $130 per year. This may not be possible for everyone, but it's the smarter play for those who can afford to do so. Homeowners who want to take advantage of this discount in the future should begin saving up for their next home insurance premium right away so they're prepared to pay it in full.

Installing sprinklers can shave about $200 off the average home insurance premium

New Mexico homeowners looking to reduce their risk of fire-related damages should think about installing a sprinkler system. There is an upfront cost associated with this, but it brings some major long-term benefits. Homeowners won't have to worry so much about fire damage and they'll save about $195 per year on their homeowners insurance.

7 cheapest cities in New Mexico for homeowners insurance

The following seven cities have the cheapest average New Mexico home insurance rates:

City Name Average Home Insurance Rate
Gallup $1,011
University Park $1,042
Hurley $1,048
Grants $1,055
Las Cruces $1,055
Prewitt $1,055
Yah-ta-hey $1,055
Data source: Quadrant data.

5 most expensive cities in New Mexico for homeowners insurance

These five cities have the highest average New Mexico homeowners insurance rates:

City Name Average Home Insurance Rate
Texico $3,707
Rogers $3,658
Clovis $3,584
Bard $3,565
Hobbs $3,550
Data source: Quadrant data.