The Best and Cheapest Home Insurance in New Mexico

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We looked at the best homeowners insurance companies in New Mexico, and found that the best price for a typical homeowner is $913 per year. But homeowners should always look for a combination of affordable rates, positive customer service reviews and the right types of coverage for their homes. Read on for our top picks for New Mexico homeowners, or use the quote box above to find the best price for you.

The Best Homeowners Insurance Companies in New Mexico

We did an in-depth survey of the most popular homeowners insurance companies in New Mexico, and have a recommendation for most people; plus two alternative picks for people with specialized insurance needs.

Best for most people: Allstate

Allstate has impeccable rates and the dependability of a large national insurance company.

We think Allstate is the best choice of home insurance company for most New Mexico homeowners. Its rates were very affordable compared to other companies we looked at, and it has a full range of online tools along with good customer service.

Allstate's prices were unmatched among the companies we surveyed. At a statewide average cost of just $913 per year, it's 29% cheaper than the statewide average and almost $300 less than our runner-up choice. The company also has generally well-regarded customer service: Its National Association of Insurance Commissioners (NAIC) complaint index is 0.34, meaning it receives about one-third as many complaints as could be expected for a home insurance company of its size.

As a large national insurance company, Allstate has a strong online presence. Insurance shoppers can get a quote, buy a policy and file a claim online, or through Allstate's app. This makes it a good choice for people who live far from an insurance agent.

Allstate's coverage options were about in line with what you'd expect. It offers dwelling, personal property and liability coverage, plus extras like loss of use. But it doesn't offer any truly unique benefits that set it apart.

One possible downside to Allstate is that it doesn't offer other financial services, such as loans or banking. People who want to keep all their financial products with the same company for simplicity's sake may need to look elsewhere.

Best customer service: State Farm

State Farm's customer service is very strong, and its rates are competitive.

Our runner-up choice for New Mexico home insurance is State Farm. While State Farm's rates were not as affordable as Allstate, it was still the second-cheapest option we found in the state. And for customers who value a very strong customer service experience, State Farm may be the better option.

State Farm has an impressive NAIC complaint index of 0.20, meaning it receives just one-fifth as many complaints as a typical company. This suggests customers tend to be happy with their coverage from State Farm.

It also received a 4/5 rating in the 2019 homeowners insurance survey from J.D. Power, and has an "A++" financial strength rating from A.M. Best — the highest possible grade. That indicates State Farm has a "superior" ability to pay out insurance claims, even in times of high claim demand (such as after a natural disaster) or negative economic climate.

State Farm also has a full suite of financial products. If you prefer to manage your insurance, loans and banking with a single company, State Farm is a convenient choice.

Best for military families: USAA

USAA's military-specific coverage options make it uniquely appealing to people in the armed forces.

We recommend USAA homeowners insurance to members of the U.S. military and their families. Although we were unable to get a quote from USAA, the company's very well-rated customer service make it worth recommending anyway.

Besides outstanding customer service, USAA also has military-specific benefits that make it extra appealing to servicemembers. For example, USAA's personal property coverage will protect your belongings anywhere in the world — even in warzones, which most insurers do not. And if you're on active duty, USAA will waive the deductible on any insurance claims you make on your uniform.

The main drawback to USAA is that you have to meet strict eligibility requirements to apply. You have to have served in one of the four branches of the U.S. Military; or, you must have a direct family member (parent or spouse) who has had USAA insurance in the past.

The best-reviewed homeowners insurance companies in New Mexico

When selecting a home insurance company, you should do more than just consider price. We compiled information for the best-rated insurers in New Mexico, and three key ways to assess their insurer's quality: the NAIC complaint ratio, the J.D. Power U.S. Home Insurance Study score and the A.M. Best Financial Strength Rating.

NAIC complaint indexNAIC complaint indexJD Power Homeowners survey scoreA.M. Best financial strength rating
State Farm0.204/5A++
Farmers0.003/5A
USAA0.155/5A++
Liberty Mutual0.532/5A
Allstate0.343/5A+
Travelers0.302/5A++
Farm Bureau Financial Services0.32--A
Hartford1.003/5A+
Munich Re0.91--A+
Chubb0.032/5A++
Auto Club0.653/5A-
Assurant1.07--A
American Family0.683/5A
American National0.69--A
Metropolitan0.232/5A
Progressive0.80--A+

The cheapest options for homeowners insurance in New Mexico

Choosing the most affordable homeowners insurance company for you may save you hundreds of dollars per year. We found a difference of over $700 per year for our sample profile. That's why it's so important to get quotes from multiple insurance companies. Below, we've compared the annual rates from five of the most popular home insurers in New Mexico.

Allstate has the best prices for home insurance in New Mexico, with an annual price of just $913. That's 29% cheaper than the average price statewide, and almost $300 cheaper than the second-best price.

Bar chart comparing the costs of homeowners insurance companies in New Mexico
Bar chart comparing the costs of homeowners insurance companies in New Mexico

Travelers had the most expensive insurance prices, with an annual quote of $1,669 per year.

Common homeowners insurance perils in New Mexico

As a state in the southwestern U.S., New Mexico experiences relatively few natural disasters; it's not as susceptible to seasonal storms or hurricanes as other regions of the country. However, some parts of the state do experience wildfires, and the little vegetation means that sudden rain storms can lead to flooding.

Are wildfires covered by insurance?

Wildfires are an occasional occurrence in New Mexico, especially in mountainous areas where there are higher rates of tree cover. Fortunately for homeowners who are at risk of wildfires, this kind of damage is almost always covered by homeowners insurance. Fire is one of the named perils that is included even the most basic types of home insurance.

However, it's always better to avoid damage in the first place, and you can take some simple steps to minimize your risk of fire:

  • Keep trees on your property trimmed, especially those that are near your home
  • Clean up dry brush and leaves promptly
  • Store firewood and other flammable materials away from your home
  • Don't attach wooden fencing to your house
  • Remove debris from your gutters, if you have them

Is flooding covered by home insurance?

Floods aren't common in New Mexico, but they do sometimes happen if there are large storms, especially near the Rio Grande. Unfortunately, damage to your home from a flood is almost never covered by a homeowners insurance policy. Instead, homeowners who are concerned about their property being damaged by a flood should consider a standalone flood insurance policy.

Flood insurance works similarly to regular home insurance, except that it exclusively covers damage due to flooding. There are two main types: policies backed by the government as part of the National Flood Insurance Program (NFIP); and policies sold by private insurers.

NFIP insurance policies are available to all homeowners, regardless of flood risk; however, they generally have long wait periods before they go into effect. Private policies can go into effect sooner, but homeowners whose properties are at a high risk of flooding may not be able to get coverage.

New Mexico insurance rates: City-by-city breakdown

In addition to a statewide price comparison, we also looked at the cost of homeowners insurance in individual New Mexico cities. For each major city in New Mexico, we calculated the typical rate in that city and compared it to the statewide average.

City nameAverage rate% difference from state average
Albuquerque$846-34.10%
Las Cruces$768-40.21%
Rio Rancho$819-36.27%
Santa Fe$824-35.86%
Roswell$1,74235.67%
Farmington$843-34.37%
South Valley$930-27.57%
Clovis$2,29178.42%
Hobbs$2,23674.14%
Alamogordo$822-36.03%
Carlsbad$1,97854.05%
Gallup$906-29.44%
Deming$1,070-16.72%
Los Lunas$1,051-18.16%
Chaparral$947-26.29%
Sunland Park$746-41.93%
Las Vegas$1,43811.97%
Portales$2,32080.63%
Los Alamos$756-41.12%
North Valley$822-35.96%
Artesia$2,02057.30%
Lovington$2,25875.80%
Silver City$836-34.93%
Anthony$761-40.77%
Grants$885-31.06%
Socorro$922-28.24%
Corrales$799-37.79%
Bernalillo$839-34.67%
Shiprock$977-23.96%
Bloomfield$958-25.44%
Ruidoso$884-31.15%
Kirtland$935-27.21%
Belen$1,077-16.12%
Raton$1,73034.71%
Aztec$879-31.53%
Truth or Consequences$870-32.27%
Eldorado at Santa Fe$834-35.04%
Los Ranchos de Albuquerque$828-35.54%
Lee Acres$842-34.45%
White Rock$733-42.93%
Taos$968-24.63%
Los Chaves$1,061-17.40%
North Hobbs$2,19070.49%
Tucumcari$2,09663.19%

To see how homeowners insurance rates in New Mexico compare to prices in other states, look at our nationwide study of home insurance costs in the United States.

Methodology

For our analysis, we collected thousands of home insurance quotes from every ZIP code in New Mexico. Our 2,100 square-foot sample home was built in 1981 and carries $171,300 of dwelling coverage. These numbers represent the median age and value of owner-occupied homes in New Mexico.

We surveyed the following companies:

  • State Farm
  • Farmers
  • Liberty Mutual
  • Allstate
  • Travelers

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

Comments and Questions

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.