New Mexico Homeowners Insurance

Fran
Fran Majidi
December 10, 2020

Homeowners Insurance in New Mexico: Complete Consumer Guide

As a homeowner in New Mexico, you may want to know a little bit of trivia about your state. For instance, many people don’t know it but there is great wine here, with vineyards all along the Rio Grande. More people in New Mexico have PhDs than in any other state. And did you know that Microsoft was established in an Albuquerque garage? Santa Fe is also home to an arts scene, amazing dining and entertainment. The now-extinct Capulin Volcano is here, in the northeast. If you drive to the top of the 8,000 foot cone, you can see not only all of New Mexico but also Texas, Oklahoma, Kansas and Colorado. Also, did you know that the Spanish had settled in New Mexico before the Mayflower came upon Massachusetts rock? In fact, Santa Fe is the oldest capital city in North America, dating back to 1610. The first atomic bomb was exploded in New Mexico in 1945 and is known by the code name Trinity. It was the same design as the bomb dropped on Nagasaki only a few weeks later.

Types of policy for Homeowners Insurance in New Mexico

There are several standard policies that apply to homeowners and owners of condominium units. Here they are:

HO-1 is The Basic Coverage Form, which provides minimal coverage. Some insurers do not off it. It applies to dwelling and personal property and insures against fire, lightning, vandalism and malicious mischief, and extended coverage perils, including riots, explosions, vehicles (damage inflicted by a vehicle to the dwelling), civil commotion, smoke, hail, aircraft, windstorm and breakage of glass, which is part of a building.

HO-2 is The Broad Coverage Form, which applies to both dwelling and personal property and includes everything in HO-1 as well as as: falling objects, weight of snow, sleet and ice, damage to water heating systems, volcanic eruption, damage from plumbing or appliances, freezing of plumbing or appliances, damage from artificially generated currents. Some coverage only applies if the damage is sudden and accidental not due to deterioration or negligence in maintenance.

HO-3 is The Special Coverage Form has the most extensive coverage of all the forms. It has an “open perils” policy, which means that if it’s not specifically excluded in your declarations page, you are covered. These exclusions include flood and earthquake, war or nuclear accident. Personal property is protected in the same way as it is in the broad form.

HO-6 is The Condominium Form, which provides broad form coverage for personal property. The amount of coverage for structural coverage varies according to the policy and the unit. It’s important to speak with a trusted agent about inclusions and exclusions if you are insuring a condo unit.

What factors affect rates on homeowners insurance in New Mexico?

Construction type and the condition of the home greatly affect homeowners insurance rates, so do a variety of other factors, like your credit score, whether or not you’re bundling with auto, the size of your home, it’s location and whether or not you have a swimming pool or trampoline. Your age may qualify you for a discount if you’re a senior. Also, you’ll pay lower rates if you have a history of being claims-free. Every insurer rates differently, so it pays to compare rates to see where you get more value.

Top 5 disasters in the State of New Mexico

New Mexico federally declared Fire as the most common disaster, with 57 counts since 1953, followed by Flood, Severe Storms, Biological and Drought. Fire/Lightning disaster is one of 16 perils covered on a standard HO-3 homeowners insurance policy. Here are the top 5 federally declared disasters in the state of New Mexico.

Rank Declaration Title Disaster Number
1Fire57
2Flood19
3Severe Storms12
4Biological10
5Drought1

Source: Federal Emergency Management Agency (FEMA)

How much is homeowners insurance in New Mexico?

The average homeowners insurance policy in New Mexico is $949.

Source: The average cost of homeowners insurance by state, Business Insider.

Crime Rate: Is New Mexico a safe state?

2019 Crime in New Mexico Crime Number Crime Rate*
Property Crime65,2693,112.7
Burglary14,610696.8
Larceny-Theft41,7021,988.8

*Rate per 100,000 inhabitants

Safest Cities in New Mexico by Property Crime*

  • Sunland Park, NM has a population of 18,103 with a Property Crime rate of 10.4 per 1k. The city average home value is approximately $136,712.
  • Rio Rancho, NM has a population of 99,359 with a Property Crime rate of 14.8 per 1k. The average home value there is about $223,988.
  • Bernalillo, NM came in third as the safest city in the state of New Mexico and has a population of 10,353 with a Property Crime rate of 22.4 per 1k. Its home value averaged at about $249,433.
  • Lovington, NM has a population of 11,322 with a Property Crime rate of 23 per 1k. Its average home value is $166,366.
  • Alamogordo, NM has a population of 31,832 with a Property Crime rate of 25 per 1k. The city home value averaged $140,561.

*Based on FBI Uniform Crime Reporting 2019, some cities have been eliminated because of changes in the state/local agency's reporting practices and cities with populations under 10,000. Zillow’s State/Cities average home value for a single family home or a condo as of Sept. 2020.

Compare Home Insurance Rates in New Mexico

Top homeowners insurance companies in New Mexico

Farmers is a popular home insurer in New Mexico. They offer reasonable prices with several options for home insurance type. Farmers also offers replacement cost coverage and eco-rebuild coverage, which offers up to $25,000 in extra coverage to rebuild or repair/replace with green items and materials.

Liberty Mutual is also a good option for homeowners insurance. Home Protector Plus covers unforeseen costs when rebuilding a home or replacing personal property with inflation protection. Liberty also offers a wide range of discounts so be sure to ask about them.

Allstate is always a trusted choice in home insurance. With one of the largest networks of agents in the country, this insurer still makes sure to customize each policy and ensure the coverage of expensive items at full value. Allstate is also generous with discounts.

New Mexico Home Insurance FAQs

How do you write an estimate for an insurance claim?

Unfortunately, you do not write the estimate. Either your contractor or an insurance adjuster will write it. You do have the right to hire your own contractor in most cases.

Can a new roof lower homeowners insurance?

Your homeowners insurance rate will reflect the condition of your home. If your home is poorly maintained, you’d have a higher rate. If it’s new or in great condition, your rate will be lower.

Is a $2,500 deductible good home insurance?

A $2,500 deductible is a high deductible, which means you’re probably paying very little monthly, but if something were to happen and you had to file a claim, you’d have to pay this amount before coverage began to pay for losses. It’s really up to you to decide if this amount is a good idea. Will you be able to pay it if one of your systems needs replacing?

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