Homeowners Insurance Quotes in Clovis, NM

What You Should Know About Home Insurance in Clovis

In 1906, Clovis was just a desolate stretch of grassland. The Atchison, Topeka, and Santa Fe Railway bought the plot and offered parcels for sale in 1907. People bought in, the area began to develop quickly, and by 1909, Clovis was designated a city. Ranching and agriculture were the primary sources of income early on and remain so today. During World War II, the federal government bought out a nearby airport. It converted it into Cannon Air Force Base, which currently provides a significant boost to the economy, as thousands of people stationed or working on base visit the city to shop and patronize the local businesses.

Although Clovis had 38,567 residents in the 2020 Census, it still has a small-town feel. Events in the city attract locals for the most part, since there are not many large cities nearby. Comprised of 23.79 square miles, there are lots of open areas and parks throughout and on the outskirts of town, including Hillcrest Park, which is a 157-acre area in the middle of the city with various sports fields, an indoor wellness and aquatic center, and a zoo, and 3200-acre Ned Houk Memorial Park with three lakes, playground equipment for kids, and all sorts of recreation opportunities.

Whether you have an older, well-kept home in the “Old Town” area or you live in one of the newer neighborhoods, talk to an expert agent to protect your home with the best homeowners insurance at the most affordable prices in New Mexico.

How Much Does a Homeowners Insurance Policy Typically Cost in Clovis?

Although the cost of living in Clovis is below the national average, homeowners’ insurance is not one of those expenses that city residents obtain at a low price. As shown in the table below, rates in Clovis are more than double the U.S. average:

Dwelling Insurance Total	Average Annual Cost in Clovis	Average Annual Cost Nationwide
$300K	$5,311	$2,582
$600K	$9,963	$4,140
$1 million	$15,860	$7,380

We arrived at these numbers by using the cost of dwelling coverage, a $100,000 liability, and a standard $1,000 deductible.

How Do Home Insurance Deductibles Change Insurance Rates in Clovis?

Suppose a tropical storm throws debris at your house and causes $5,000 worth of damage. When you file a claim, your insurer may not cover the entire bill. The reason for this is that when you apply for a policy, you agree to a deductible, which is the amount you agree to pay every time you file a claim.

So, if you choose a $2,000 deductible in the above scenario, your insurer will pay only $3,000. With a $4,000 deductible, your provider will only pay $1,000. Since your insurer’s portion or responsibility for claims depends on your deductible, they will raise your premiums if you pick a low amount and reduce them if you agree to a higher deductible.

Is Home Insurance Tax Deductible in Clovis?

While it could be amazing if your premiums could reduce your taxable income, if your house is used solely as a single-family home, payments on your policy are generally not tax-deductible. If you use it for some of these purposes, you may be entitled to a tax deduction:

• A home office
• Storage for work
• A rental to a tenant
• A rental to a business

Generally, when your premiums are tax-deductible, the amount you can deduct corresponds to the percentage of the home you dedicate to the above purpose. So, if you use 10% of your home as a home office, 10% of your premiums will be tax-deductible. However, you should always confirm these scenarios with your tax preparer.

Does Clovis Have the 80% Homeowners Insurance Rule?

Insurers that write policies in Clovis do follow the 80% rule, which is not a law but an industry standard. This rule requires homeowners to obtain at least 80% replacement coverage for their homes. That means that if it will cost you $300,000 to rebuild your house after a fire, you will need $240,000 in replacement cost coverage. It is great to understand this concept in advance, but your agent will certainly discuss this with you during the application process and fill you in on any details you might still need.

Bundling Home and Auto Insurance in Clovis

Your InsureOne agent will work diligently to get you lower premiums to help defray the high cost of homeowners’ coverage in Clovis. One of the standard ways to lower rates is to bundle your home and auto insurance, or get them from the same insurer. You can reduce your policy cost by as much as 25% by using one provider for all your policies, and it is also a time saver when you sign up for coverage and when you pay your bills.

Bundling is where your InsureOne agent’s white-glove services really shine because it takes significant effort, and your agent does all of the work so you can relax or get on with your day. What makes bundling confusing is that insurers offer different pricing and bundling options for homeowners’ coverage, car insurance, and other policies. Your agent will review quotes from multiple providers for all of your coverages and the bundling discounts they offer, and put together a personalized policy package that matches your needs at the best possible prices.

What Factors Do Insurance Companies Consider When Setting Rates?

Insurers have their work cut out for them when you apply for a policy. They do not want to overcharge you because they want your business, but they also need to ensure that they do not lose money by insuring you. To price your policy just right, insurers research many details that help predict how often you might file a claim and how much it might cost them. These are some examples of what they will use to help figure out the best rate to charge you:

• Your claims history
• The composition of your home
• The type and age of your HVAC, electric, and plumbing systems
• Vandalism rates in your neighborhood
• The age of your home

What Are the Different Types of Homeowners Coverage Offered in Clovis?

What will be better for your situation, an HO-3 or an HO-4? If these terms sound unfamiliar, that is fine — you do not need to know them. They represent eight types of homeowners’ policies, each designed for a specific purpose. Your agent will help you choose the best policy for your situation, but here is a quick explanation of four of these different policy types:

• HO-3 policy: You get this policy to cover your house and its contents if you own it, and there are no common areas you share with others.
• HO-4 policy: Tenants get this policy to protect their belongings. The landlord will have to obtain separate coverage to insure the structure.
• HO-6 policy: Similar to the HO-4, condo and co-op owners get this policy to protect their belongings, while the HOA gets a policy for the structure and common areas.
• HO-7 policy: This policy serves a similar purpose to the HO-3, but it is designed for those who live in trailers, manufactured homes, or similar types of dwellings.

What Is the Most Common Type of Home Purchased in Clovis?

Almost 77% of the homes in Clovis are single-family and detached. The vast majority of the houses in town were built between 1940 and 2000, and many of the older homes are charming and in excellent condition. One of the reasons for the high cost of homeowners’ insurance coverage in this town is due to a higher-than-average crime rate. To reduce your premiums, try to learn more about the link between home security and insurance costs, and ask your agent how much you can save if you install an alarm or surveillance system in your house.

Which Common Natural Disasters Are Covered by Home Insurance in Clovis?

Although natural disasters are not common in Clovis, they do occur from time to time. You can check with your agent if your policy covers these and similar types of events:

• Tornadoes: Clovis is not too far from Tornado Alley. The city has, in the past, been in the path of at least remnants of these wind events coming from Texas or Oklahoma.
• Flooding: The city occasionally experiences severe flooding, driven by thunderstorms. You might need a separate policy to cover this type of damage.
• Hailstorms: While it is unlikely to damage your home, Clovis does get them, typically during the spring or summer months when thunderstorms are more common.