Average homeowners insurance cost in New Mexico

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Whether you’re buying a new home or safeguarding the one you already own, it’s important to have comprehensive homeowners insurance. However, the amount you’ll pay depends on the insurance company and the coverage limits you choose.

Homeowners insurance in New Mexico costs an average of $2,638 a year, according to Insure.com’s study.

Read this guide to learn more about the average homeowners insurance rates in New Mexico by insurance company and ZIP code.

Key Takeaways

Homeowners insurance costs an average of $2,638 a year, based on our analysis.
Of all the ZIP codes in New Mexico, 88021 has the most affordable home insurance rates at around $1,729 annually.
In New Mexico, State Farm provides the most affordable home insurance at an average annual premium of $1,775.

Average home insurance cost in New Mexico by coverage level

Homeowners insurance costs $2,638 a year in New Mexico for the coverage limits of $300,000 dwelling coverage and $100,000 liability with a $1,000 deductible.

If you raise the dwelling coverage limit from $300,000 to $400,000, the cost of homeowners insurance in New Mexico will increase to $3,480 per year for $100,000 in liability protection and a $1,000 deductible. Below, you’ll find the average cost of homeowners insurance in New Mexico for dwelling coverage limits of $300,000, $400,000, and $500,000.

Coverage	Average annual rate	Average monthly rate
$200,000 with $1,000 Deductible and $100,000 Liability and None Deductible	$1,820	$152
$200,000 with $1,000 Deductible and $300,000 Liability and None Deductible	$1,829	$152
$300,000 with $1,000 Deductible and $100,000 Liability and None Deductible	$2,638	$220
$300,000 with $1,000 Deductible and $300,000 Liability and None Deductible	$2,647	$221
$400,000 with $1,000 Deductible and $100,000 Liability and None Deductible	$3,480	$290
$400,000 with $1,000 Deductible and $300,000 Liability and None Deductible	$3,489	$291
$600,000 with $1,000 Deductible and $100,000 Liability and None Deductible	$5,129	$427
$600,000 with $1,000 Deductible and $300,000 Liability and None Deductible	$5,138	$428
$1,000,000 with $1,000 Deductible and $100,000 Liability and None Deductible	$8,330	$694
$1,000,000 with $1,000 Deductible and $300,000 Liability and None Deductible	$8,339	$695

Homeowners insurance companies in New Mexico determine rates based on risk factors. When calculating premiums, they consider your location, claims history, credit history and coverage limits.

If your neighborhood has experienced many claims in the last few years, you can expect to pay higher home insurance rates than areas with few to no claims. Your credit score can also play a role in determining your home insurance costs.

According to S&P Global Market Intelligence’s RateWatch application, the average homeowners insurance premium for owner-occupied homes nationwide increased by over 11% in 2023.

Best homeowners insurance companies in New Mexico

It’s always a good idea to shop around and compare prices before purchasing homeowners insurance. Several factors come into play when choosing the best homeowners insurance company.

We evaluated homeowners insurance providers in New Mexico by comparing their NAIC scores and AM Best ratings and compiled a list of the top insurers in the state. Based on Insure.com’s analysis, Farmers received the lowest NAIC score and an AM Best rating of A. A lower NAIC score signifies fewer complaints relative to the company’s size, indicating greater customer satisfaction.

Company	Average annual premium	AM Best rating	NAIC Complaint Index	Overall score
Farmers	$3,069	A	0.54	5
State Farm	$1,775	A++	0.95	4.95

Average homeowners insurance cost by company in New Mexico

State Farm has the cheapest homeowners insurance rates in New Mexico. Its average annual cost for New Mexico homeowners is $1,775. Farmers and #N/A also offer affordable insurance.

By comparing homeowners insurance rates, you could save hundreds, if not thousands, of dollars annually.

The table below shows the average annual and monthly insurance rates for homeowners in New Mexico with $300,000 in dwelling coverage, $100,000 in liability coverage, and a $1,000 deductible.

Company	Average annual rate	Average monthly rate
State Farm	$1,775	$148
Farmers	$3,069	$256

New Mexico homeowners insurance rates by ZIP code

In New Mexico, insurance companies evaluate the risk associated with specific locations to determine premiums. ZIP codes with higher crime rates or a history of natural disasters are often considered high-risk, resulting in higher insurance premiums. Additionally, the cost of rebuilding or repairing homes in a particular ZIP code can influence your price for a homeowners insurance policy.

Shop around and compare quotes from different insurance companies to find the best home insurance rates in New Mexico. Also, remember to inquire about any discounts, such as bundling policies or smart home discounts, to help lower your premium.

Most affordable ZIP codes for home insurance rates in New Mexico

Homeowners insurance costs in New Mexico can vary widely by location, with your ZIP code being a key factor in determining your rate. Based on our data, the the 88021 area has the most affordable insurance rates, at $1,729 annually or $144 monthly.

Below are the homeowners insurance rates for the most affordable ZIP codes in New Mexico.

ZIP code	Average annual rate	Average monthly rate
88021	$1,729	$144
88008	$1,766	$147
88063	$1,767	$147
88002	$1,772	$148
88081	$1,780	$148
88024	$1,818	$152
88001	$1,856	$155
88005	$1,858	$155
88003	$1,861	$155
87544	$1,873	$156

Most expensive ZIP codes for home insurance rates in New Mexico

Your ZIP code is a key factor in determining the cost of your homeowners insurance coverage. In New Mexico, certain areas have higher insurance premiums due to elevated crime rates, increased risk of natural disasters, and higher living costs.

88135 has the most expensive homeowners insurance rates in New Mexico at an average annual cost of $5,543.

Below, we’ve highlighted some of the most expensive ZIP codes in New Mexico for home insurance:

ZIP code	Average annual rate	Average monthly rate
88135	$5,543	$462
88132	$5,424	$452
88130	$5,365	$447
88101	$5,311	$443
88242	$5,225	$435
88411	$5,222	$435
88118	$5,218	$435
88124	$5,208	$434
88240	$5,204	$434
88267	$5,188	$432

Home insurance rates vary from one city to another. But with Insure.com, finding the right home insurance policy is easy. Learn more about homeowners insurance costs for different cities below.

Home insurance rates in New Mexico by city

See rates in your city

Home insurance rate trend in New Mexico

We analyzed home insurance rate trends in New Mexico and found that homeowners insurance rates experienced an overall increase of 4% or $108, from 2022 to 2023.

The below data shows how much homeowners insurance rates have changed since 2019.

2019 rates	2022 rates	2023 rates
$2,202	$2,530	$2,638

To find the right homeowners insurance, research thoroughly and compare costs from multiple insurers, as they assess risk differently. Getting quotes from at least three companies helps ensure you get the most affordable coverage in New Mexico.

Resources & methodology

Source

S&P Global. “US homeowners insurance rates jump by double digits in 2023.” Accessed September 2024.

Methodology

Insure.com worked with Quadrant Information Service to get homeowners insurance data. We analyzed 20,739,560 insurance quotes from 82 national and regional insurance companies across 34,588 ZIP codes to determine the average premiums.

The insurance rates are based on a sample profile of a homeowner with good credit and the following coverage level:

$300,000 dwelling coverage
$100,000 liability protection
$1000 deductible

We have taken into account 3 important factors such as average annual cost, NAIC score and AM Best rating, to determine the list of best homeowners insurance companies. The quoted insurance rates are for comparison purposes, and your individual rates may vary.

Shivani Gite

Contributing Writer

Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.