Best New Mexico Homeowners Insurance Quotes (2025)

Allstate offers some of the cheapest homeowners insurance policies in New Mexico, with monthly premiums starting at $171.

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The average annual cost of homeowners insurance in New Mexico is $1,733 for a policy with a $1,000 deductible and $300,000 in dwelling coverage, according to Insurify data.

Megafires are becoming more common in the state of New Mexico. The largest fire in the state’s history started in 2022 during a drought.1 As New Mexico contends with more wildfires, homeowners who live in high-risk areas could see an increase in their insurance rates. Homeowners in the highest-risk areas might have to turn to state-mandated insurance companies, like New Mexico’s Fair Access To Insurance Requirements (FAIR) plan.

Here’s what you should know about comparing home insurance quotes and finding affordable coverage in New Mexico.

Quick Facts

  • New Mexico wildfires are on the rise due to droughts and rising temperatures. 

  • It’s becoming more difficult for some New Mexico residents to insure their homes or businesses against wildfires.    

  • The average annual cost of home insurance in New Mexico is $2,592 for $300,000 in dwelling coverage —almost comparable to the national average of $2,532.

Best home insurance companies in New Mexico

If you’re looking for home insurance in New Mexico, plenty of quality companies serve local homeowners. The best homeowners insurance for you depends on your individual situation and needs. Start your search with the companies listed below.

  • Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.

    We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.

    • Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
    • Customer satisfaction: To calculate this score, Insurify analyzed more than 55,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
    • Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
    • Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
    • Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.

Cheapest rates: State Farm

Best insurer for vacant home coverage: Foremost

Best insurer for optional coverage: Allstate

Best insurer for green homes: Travelers

Cheapest home insurance in New Mexico

Allstate provides the cheapest home insurance in New Mexico. A policy from this insurance company costs around $171 per month.

Before choosing the home insurance company that’s right for you, make sure you compare multiple companies. The table below provides the average home insurance rates for some of the cheapest insurers in New Mexico.

Cost of homeowners insurance in New Mexico

The average cost of homeowners insurance coverage in New Mexico is $2,592 for $300,000 in dwelling coverage, according to Insurify data. Many factors influence the cost of homeowners insurance in New Mexico, including:2 

  • Where you live: New Mexico insurers look at your ZIP code when determining your insurance premiums. They want to know if you live close to a fire department, if there’s a high crime rate, and if your area is prone to certain weather events.    

  • Your home’s construction: The type of material your home is made of can also affect the cost by 5% to 15%. For example, you might find it cheaper to insure a brick home because it’s more wind resistant. But if you live in an area with earthquakes, a wooden house is a better option.3  

  • Your home’s age: Home insurance premiums often increase as homes age because there’s more risk. For example, the home might have an older roof or older pipes, which can increase the chance of a leak. 

Cost of homeowners insurance by dwelling coverage amount

Dwelling insurance, also known as Coverage A, covers the physical structure of your home. This is typically part of standard coverage in a homeowners policy and can also include coverage for permanently attached structures, such as a deck or garage. Specific coverages can vary. 

A dwelling insurance policy is typically based on your home’s replacement cost. This is how much it would cost to rebuild the physical structure of your home based on the current cost of materials and labor. Your policy’s dwelling coverage amount should align with your replacement cost. In general, the more it costs to replace your home, the higher your premiums will be.

The table below shows how the dwelling coverage amount you choose can affect your monthly home insurance premiums for a policy with a $1,000 deductible.

Cost of homeowners insurance by deductible

A homeowners insurance deductible is the amount of money you have to pay out of pocket before your insurance pays for a covered claim. When you purchase insurance, you typically have several deductible options. Generally, the higher your deductible, the lower your monthly premium.  

The following table highlights how your average annual premium can change based on the deductible amount you choose. Rates are for a policy with $300,000 in dwelling coverage.

How to get cheap homeowners insurance in New Mexico

If you’re looking for the best ways to keep your homeowner’s insurance as cheap as possible, these are some things you can do:3 

  • Increase your deductible. If you can afford to increase your insurance deductible from $500 to $1,000, you can potentially save up to 25%. 

  • Bundle insurance products. Purchasing multiple insurance products, such as home and auto insurance, from the same company can help you save anywhere from 5% to 15% on your premium.  

  • Improve home security. Adding home safety and security features, such as smoke detectors or burglar alarms, can help you secure discounts. Some companies will reduce your premium by 15% to 20% if you install a sprinkler system and a fire and burglar alarm that contacts emergency services.

  • Look for discounts. Most insurance companies offer a range of discounts, which can include home improvement discounts, non-smoker discounts, new homebuyer discounts, or a bundling discount.   

  • Compare multiple insurers. Getting quotes from at least three insurance companies can help you find the one that best fits your needs and budget.

How much homeowners insurance do you need in New Mexico?

Most mortgage lenders require borrowers to purchase a home insurance policy. Different insurance policies provide different coverage, so it’s important to understand exactly what your home insurance policy covers when you buy it. 

Most standard home insurance policies include coverage for:

Keep in Mind

While standard policies usually cover damages from a disaster, there are exceptions. For instance, most policies don’t cover earthquakes, flooding, or damage due to poor maintenance. You can often purchase an additional policy or an endorsement for disasters such as earthquakes.

What are some of the biggest risks when owning a home in New Mexico? 

Extreme weather events are causing major increases in insurance premiums in New Mexico. Some of the most common perils in New Mexico include wildfires and flash floods.

To help homeowners who can’t secure insurance in the standard market, New Mexico has implemented the Fair Access to Insurance Requirements (FAIR) plan. New Mexico residents can apply for coverage through the program. 

New Mexico homeowners insurance FAQs

If you’re shopping for home insurance in New Mexico, this additional information may help as you research your coverage options.

  • How much is home insurance in New Mexico?

    Home insurance in New Mexico costs $1,733 per year for a policy with a $1,000 deductible and $300,000 in dwelling coverage, according to Insurify data. Your home insurance rate will depend on numerous factors, including your ZIP code, age of your home, square footage of your home, the coverage levels you choose, and more.

  • Which company has the cheapest homeowners insurance in New Mexico?

    Allstate has the cheapest homeowners insurance in New Mexico, with monthly premiums of $171.

  • Does New Mexico require homeowners insurance?

    No. New Mexico doesn’t require homeowners insurance. But your lender will require you to have coverage if you have a mortgage on your home. It’s important to have a policy in place so that you can afford costly repairs if a covered peril damages your home. Without insurance, you’d be on the hook financially to fix your home.

  • What is the most common type of homeowners insurance?

    An HO-3, or special form, policy is the most common type of homeowners insurance. It pays for damage to your home and personal belongings stemming from a covered event, and your liability if someone is injured on your property.

Jessica Martel
Jessica Martel

Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.

Jessica has been a contributor at Insurify since July 2023.

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