Homeowners Insurance Quotes in Hobbs, NM

What You Should Know About Home Insurance in Hobbs

Hobbs is one of those cities that offers a full range of amenities while maintaining a strong sense of community. Situated in a high desert region, there is a lot of open space surrounding the city, and the municipality maintains about two dozen parks, accommodating fishing, jogging, biking, and all sorts of sports.

For days when the heat is a bit much, the Center of Recreational Excellence offers a full range of activities indoors, including swimming, basketball, volleyball, pickleball, racquetball, football, golf, soccer, and more. Hobbs has an endless calendar of events that bring the community together.

Neighborhoods range from quiet, established areas more in the center of the city to newer subdivisions toward the outskirts of town. There are also plenty of apartments for those who are not ready to buy a home.

Regardless of the area in Hobbs you choose and the housing type, 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 Hobbs?

Insurance underwriters establish your premiums based on various factors that help insurers calculate the risk of insuring your home. To get an exact quote, you will have to contact your agent so they can review details about you and your home, but here are the average rates residents of Hobbs pay:

Dwelling Insurance Total	Average Annual Cost in Hobbs	Average Annual Cost Nationwide
$300K	$5,204	$2,582
$600K	$9,693	$4,140
$1 million	$15,372	$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 Hobbs?

Every time you file a claim, you are responsible for covering a portion of the damages, called a deductible, before your insurer begins paying. Deductibles are typically between $500 and $5,000. The more you are willing to cover, the less your provider will have to pay. That is why insurers offer lower rates when you agree to a higher deductible.

A $500 deductible would mean that if you file a successful $2,000 claim, your insurer will pay $1,500, while a $2,500 deductible with the same claim amount would mean your insurer pays nothing at all, so there will be no reason to file a claim for amounts equal to or less than your deductible.

Is Home Insurance Tax Deductible in Hobbs?

Your accountant will likely tell you that your homeowners’ policy is not tax-deductible. However, some circumstances might allow you to reduce your tax bill using your premiums as an expense — namely, if you use your home to produce income. So, if any of the following scenarios apply to you, you may be entitled to a tax deduction for part of or your entire homeowners policy:

• You use a room in your house as a home office.
• You use your basement to store work-related products.
• You rent a portion of your home to tenants.
• You rent the whole house to tenants.
• You rent your home to a business.

Does Hobbs Have the 80% Homeowners Insurance Rule?

There is an insurance industry standard called the 80% rule. It is not a law but a requirement by your policy that you have coverage of at least 80% of your home’s replacement cost if an event covered by your policy ruins it beyond repair.

While this is not a law, insurers in Hobbs likely require you to follow this rule. So, if your house costs $200,000 to rebuild, you can expect your agent to require you to obtain at least $160,000 in dwelling coverage.

You might not be familiar with the replacement cost of your home, but you can rely on your InsureOne agent to help you determine an appropriate amount.

Bundling Home and Auto Insurance in Hobbs

Policies in Hobbs are pretty costly, but if you also need to obtain car insurance, you might be able to save significant money by getting both plans through the same carrier, which is called “bundling” policies.

Bundling your home and auto insurance can save you up to 25% off your coverage, while consolidating your bills and making it easier to sign up for coverage by only dealing with a single insurer.

In true concierge style, your InsureOne agent will diligently price-shop both of your policies, compare pricing and bundling discounts, and deliver a customized package of policies. You end up with the best service, the best coverage, at the best prices.

What Factors Do Insurance Companies Consider When Setting Rates?

As mentioned, insurers task their underwriters with reviewing details about you and your home to help determine your risk and the cost of your policy. These are some of the many factors they will use:

• Risk of natural disasters
• Distance to the nearest fire hydrant
• Distance to the nearest fire station
• Your claims history
• Neighborhood crime rates

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

There are different types of homeowner’s policies for different circumstances. If you do come across policy names ranging from HO-1 to HO-8, all you need to know is that each serves clients’ unique needs and preferences. These are examples of four such policy types:

• HO-1 policy: Fee simple homeowners get this policy when they want the bare minimum of coverage for their home to protect the structure and their belongings.
• HO-4 policy: If you rent from your landlord, you would obtain this type of coverage, which covers the contents of your unit but not the building itself.
• HO-5 policy: The policy is on the other end of the spectrum from the HO-1. It provides the highest level of coverage for fee simple owners.
• HO-6 policy: This one is similar to the HO-4, but instead of being designed for tenants, it is made for co-op and condo owners.

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

Hobbs is not a densely populated town. In fact, almost 70% of its houses are single-family detached homes. Nearly 40% of the town’s dwelling units are rented, with slightly over 60% owner-occupied. Just like owners need to educate themselves about homeowners’ insurance coverage, tenants need to learn about how much renters’ insurance costs and what affects their rates.

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

Your home can be damaged or destroyed by natural disasters. Each policy is different, so you should always check with your agent which events your policy covers. These are some of the natural disasters that might affect your home in Hobbs and are covered by most policies:

• Hail: During the spring season — from April through June — hailstorms can pound down on homes, potentially causing damage.
• High winds: Hobbs is not near the ocean, but the city does get hit by tropical storms and even tornadoes at times.
• Thunderstorms: These events are a bit more common and can cause water damage from heavy rain and flooding.