Everything You Need to Know about Home Insurance in New Mexico

Most people are familiar with this state’s magical nickname: the Land of Enchantment. But what is it about New Mexico that captivates and delights? Maybe it’s the vast expanses of southwest desert that evokes images of proud Native American warriors and buffalo herds. It might lie in the rugged, dark and majestic heights of Rocky Mountain. Does magic happen here? According to the residents, it does!

There is much to see and do in New Mexico. Among the most well-known are White Sands National Park, where you can sled down huge dunes, and Carlsbad Caverns, a cool place for amateur cavers. Don’t miss a strange side trip to Roswell’s International UFO Museum – where it’s said aliens once crashed to earth. You can get a feel for how early civilizations lived in several different places, including Chaco Culture National Historic Park and petroglyphs from 400 to 700 years ago at Petroglyph National Monument near Albuquerque.

Homeowners in New Mexico celebrate the uniqueness of their region every day. Now they can celebrate finding top-rated insurance to protect their homes and other belongings. InsureOne Insurance offers homeowners insurance that meets individual needs with flexible plans.

How Much Does Homeowners Insurance Cost in New Mexico?

The average cost of homeowners insurance in New Mexico is $1,681 per year for a policy with $300,000 in dwelling coverage. This amount is close to the national average of $1,820 per year.

Unfortunately, the Land of Enchantment is also the land of wildfires, flash floods, tornadoes and earthquakes. Most of the time, residents enjoy a dry climate with little precipitation and plenty of sunshine. Those who live further north towards the Rockies, however, may experience freezing temperatures, as well as snow during the winter months.

Auto Insurance
Ready to Get a Quick Quote?

How Do Home Insurance Deductibles Affect Rates in NM?

Your deductible is the amount you agree to pay in the event of an approved claim. If you take more of the financial responsibility with a higher deductible, you’ll likely pay less in your premium and vice versa.

In New Mexico, the average cost to replace a roof is between $4,000 and $11,000. If you need to replace your roof due to covered damage and your deductible is $1,000, that’s how much you will contribute towards the cost while your insurer picks up the rest. You could be asked to contribute your part upfront or you may receive a check from your insurer for the replacement, minus the $1,000.

It’s always best to choose the highest deductible you can afford since it will lower your overall policy cost.

Compare Home Insurance Rates by Coverage Levels in New Mexico

The following table shows the average annual premiums in New Mexico for different levels of dwelling coverage.

Dwelling Coverage (New Mexico) Average Annual Insurance Cost
$100,000 $732
$200,000 $1,158
$300,000 $1,681
$400,000 $2,193
$500,000 $2,765

At InsureOne, our agents do the work for you – providing you with top-notch customer services and flexible plans you can choose from to pick the best one for you.

Is Home Insurance Tax Deductible in NM?

No. Your home insurance costs are not deductible from your income tax. If your home is used as more than a primary residence, you may be able to deduct expenses for things such as a home office or a rentable space. It’s a good idea to get professional advice on tax questions.

Does New Mexico Have the 80% Homeowners Insurance Rule?

The 80% rule is typically part of your insurance policy no matter what state you list as your permanent address. Most insurers include policy language that governs how they pay out claims in the event a home is not insured for at least 80% of its replacement value. In these cases, the insurance company may not pay out the full amount of the claim.

For example, a home with a replacement cost of $250,000 should be covered for at least $200,000 (80% of $300,000). If the home is insured for less than that, the insurer will only pay out a portion of the minimum coverage purchased.

Many things may change the replacement value of your home, including increased lumber prices and renovations. Check with your agent periodically to make sure your home is still covered for at least 80% of its replacement value.

Auto Insurance
Ready to Get a Quick Quote?

Bundling Home and Auto Insurance in NM

You hear it all the time: Companies reward loyalty. If you are happy with your current insurance company, showing them a little appreciation and trust by allowing them to insure more of your items can get you a sweet discount.

For example, bundling your home insurance with your car insurance can net you up to 25% off your premium. Maybe you like to spend your time off casting a line from your boat into the beautiful waters of Brantley Reservoir or Conchas Lake. Many motorcycling enthusiasts think New Mexico offers some of the best riding in the southwest. Take a loop through historic Silver City and into the Gila National Forest.

Whatever you have that’s worth insuring is worth bundling for a break in price. Don’t forget to take advantage of other discounts available, as well.

Find an Office Near You

What Weather Events Affect Home Insurance Costs in New Mexico?

Unfortunately, New Mexico is prone to wildfires and a high level of property crime. As climate change increases, so do home insurance rates in affected areas. Even so, most New Mexico homeowners will pay rates that are consistent with the rest of the country.

If you live in an area where wildfires are prevalent, there are steps you can take to protect your property and possibly lower your premium. Firewise USA is a program within the National Fire Protection Association that helps high-risk areas take steps to mitigate wildfire damage. According to their recommendations, homeowners can prepare their homes by:

  • Removing dead leaves and other vegetation up to 30-feet from your home
  • Creating fuel breaks with driveways, walkways, paths and patios

There are many more ways to make your home safer from wildfire. Communities at risk can become a Firewise USA Site to reduce the risk of wildfire throughout the area.

What are the Different Types of Home Insurance?

There are 8 different types of home insurance. Each type caters to homes that fall into categories, but your own policy can also be customized to fit your specific needs. An HO-3 policy is the most widely-used for single family homes. If you have a condo in Carlsbad or a manufactured home in Moriarty, you may choose either HO-6 (condo) or HO-7 (mobile and manufactured).

If you’ve lovingly restored an older, historic home, you may decide to upgrade to an HO-8, which has coverage options not typical for most homes. An HO-2 policy is similar to an HO-3 policy, but offers an increased level of protection.

It’s vital to choose the right type of home insurance. You can trust the team at InsureOne to help you find a flexible policy from a top-rated carrier that meets your individual needs.

What is the Most Common Homeowners Insurance in New Mexico?

Your A-frame in Albuquerque is as precious to you as the next person’s split-level in Santa Fe. That’s why it’s so important to find home protection with a company you trust that offers flexible plans that meet your specific needs.

Because wildfire is the biggest threat to homes in New Mexico, you’ll want to make sure your policy has appropriate level coverage to answer that challenge. You’ll also need to make sure your personal property can be replaced and you’ll have the money to find a temporary home if yours need major repairs.

Another consideration is making sure you are protected if someone gets hurt while at your residence or your dog bites someone at the local dog park. Your liability coverage is designed to help you pay for medical costs, as well as helping pay your legal bills if someone sues you.

By understanding the coverage you need, you can ensure your home is adequately protected with the right insurance policy.

Get the Best Homeowners Insurance in New Mexico Today

The Land of Enchantment offers its residents a multitude of adventures and trips through the past. If you are a homeowner or planning to purchase a home in New Mexico, let InsureOne help you find the best coverage with A-rated national carriers.

Our agents do the work for you, so you don’t have to spend your time researching different companies. Once we know what will fit you specifically, we can find multiple options so you can choose the best one. Home insurance is not a one-size-fits-all proposition. But at InsureOne, we can offer you a white-glove, one-stop shop.

You’ll get the best home insurance at the best price. Give InsureOne a call at (800) 836-2240 or check their online site today. Or, if you are in the neighborhood, take time to stop in for a one-on-one visit.