Best Homeowners Insurance in New Mexico: Top 5 Insurance Companies to Protect Your Investment

New Mexico is a great place to live and own property. It is hot, sunny, affordable, and beautiful- not to mention the rich and vibrant cultural melting pot.

That said, there are some risks you may face if you have investments in New Mexico property- most notably wildfires and flash flooding. Because of these risks, and the general challenges you can face as a property owner, it is vital to have homeowners insurance.

Picking a policy can be tricky, but it helps to have a narrowed-down list to choose from. We have provided just that!

Below, we compare five of the best homeowners insurance companies that operate in New Mexico. We have detailed the policy features and possible discounts you can take advantage of. Additionally, you can find a few tips about how to assess what policy is right for you.

A Quick Introduction to Homeowners Insurance

The purpose of homeowners insurance is to protect your property investment. If your home or something inside it is damaged or destroyed, your home insurance policy is your first line of defense against unmanageable expenses or long-term challenges.

The Average Cost of New Mexico Homeowners Insurance

Mexico home insurance rates hover around the national average, but you may have to pay more if your property is located in a high-risk area for wildfires, flash flooding, or earthquakes.

The cost of insurance coverage in New Mexico can vary greatly based on the following factors.

Homeowners Insurance and Landlord Insurance: What Is the Difference?

There are different types of insurance coverages for different types of property owners. It is important to understand the differences and what one applies to you.

Homeowners insurance is for people who live on their own property. Landlord insurance is for those who rent their properties to others. Sometimes, you may need both to fully cover yourself and your tenants if you have them.

How to Pick the Best New Mexico Homeowners Insurance Companies

New Mexico Specifics

The primary risks New Mexico homeowners face are wildfires and flash floods. Certain parts of the state are high-risk areas for both, with certain areas also facing the threat of earthquakes. You need a policy that provides enough coverage to rebuild your property if the worst should happen, but it is also important to include the smaller things that can happen to anyone.

Pick an insurer with versatile plans that cover all the bases, and look for add-ons for the more severe weather risks.

General Things to Consider

Any decent homeowners insurance policy should include dwelling coverage, personal liability insurance, personal belongings coverage, and additional living expenses. You also need to consider the additional coverage and endorsement options and the limits available on each.

Other things to consider when choosing a homeowners insurance company include:

• The company's financial strength
• What discounts they offer
• How high the customer satisfaction ratings are
• Where you can find support
• The costs compared to other similar policies

The Five Best New Mexico Home Insurance Companies

1: Chubb

Chubb is one of the most inclusive homeowners insurance companies in the country. Its policies are aimed at high-end properties that need excellent coverage and property investors who are happy to pay a little more for comprehensive protection and service that goes above and beyond.

Coverage and Features

New Mexico homeowners with high-value properties should consider Chubb for its generous coverage options. Among the best features is extended coverage of your rebuilding properties to their original quality regardless of cost. The company also offers inspections and risk assessments in high-risk areas.

Here are some of the other great features available through Chubb homeowners insurance policies.

• Earthquake coverage
• High-limit personal property insurance with brand-new replacements
• Advanced home monitoring service for flood and fire-prone areas
• Tree and post-storm debris removal
• Cash settlement option up to the policy's value if you choose not to rebuild
• Risk consultation services for fires, floods, and earthquakes
• Excellent liability coverage
• Flood insurance as part of the policy

If you want to work with a private insurance company that exceeds expectations and protects your investment in every scenario, Chubb is the way to go.

Discounts

• Lower rates are available for new or recently renovated homes.
• Properties with monitored security systems and safety features such as smoke detectors and alarms could be eligible for discounted insurance.
• You can bundle your home insurance with auto insurance to earn savings on your coverage.
• Rates are 10% lower after three years claim-free.
• Homes with backup generators may qualify for lower premium costs.

2: State Farm

State Farm is one of the most financially powerful and respected insurance providers in the USA. It has a robust and reliable network of local agents who provide excellent customer service, and the range of coverage options is second to none.

Coverage and Features

We rank State Farm highly for New Mexico homeowners because of the generous dwelling coverage limits that pay 20% more than your policy if your property is destroyed in a fire, flood, or earthquake and costs more to rebuild than originally expected.

Here is a selection of the many notable features available that make State Farm an excellent choice for homeowners insurance in New Mexico.

• Sewer and drain coverage
• Flood insurance in partnership with the National Flood Insurance Program
• Support with earthquake coverage as an extra endorsement
• Upgrade coverage for HVAC and water system
• Comprehensive cover for all kinds of water damage
• Business insurance for those who operate a home office
• Extended dwelling insurance
• Liability coverage and medical expenses

You should consider choosing State Farm for your insurance policy if you value top-tier customer service and unrivaled financial strength.

Discounts

• Multi-policy bundles can save you money by combining home and auto insurance.
• Discounts are provided for most properties with monitoring systems such as security features.
• You earn a claim-free discount if you go several years without making a claim.
• Some homeowners may qualify for a discount on their policy if they upgrade their utilities.
• Homes with impact-resistant roofs may receive discounted insurance rates.

3: Amica

Our third pick for New Mexico home insurance is Amica. One of the main reasons it makes our list is its association with recognized flood and earthquake insurance programs that provide better coverage limits if your property is damaged due to extreme weather.

Coverage and Features

Amica offers several homeowners insurance policies with plenty of optional extras if you want to enhance your protections overall. There is also a helpful storm program that helps people prepare for and protect themselves from extreme weather events.

These are a few other reasons to choose Amica as your home insurance company in New Mexico.

• Help set up flood protection with the National Flood Insurance Program
• Storm advice and support
• Liability coverage for remote workers and home-based businesses
• Special protection for laptops, computers, and tablets
• 30% on top of your dwelling coverage policy limit to help restore your home
• Damaged property replaced at full value, not depreciated value
• Identity fraud insurance
• Damage cover for water backup caused by pumps and drains

Discounts

• Earn discounts by going paperless with your documents and bills.
• Lower policy rates often apply to properties with certain safety features and security systems.
• Your insurance may cost less with Amica if you have a new or recently remodeled property.
• After three years with no claims, your rates go down.
• Enrolling for autopayments or paying your premium in full could earn you lower rates.
• Like many providers, Amica offers a bundling discount if you combine multiple policies.

4: Progressive

Progressive is a network of home insurance providers that helps homeowners find the best policies and endorsements for their properties. The variety of options, prices, and coverage plans help every New Mexico property investor secure the protection and peace of mind they need.

Coverage and Features

The coverage options available through Progressive are vast- especially since the network can provide policies through other companies. You can customize your plan to include higher limits and extended coverage for more severe damage.

Here are a few of the highlights.

• Fire damage coverage
• Optional coverage at an extra cost for flood insurance
• Lightening insurance
• Liability insurance for personal injuries sustained by you or guests on your property
• Temporary living expenses if you become displaced
• High limits for personal property replacement
• Insurance for other structures on your property

Discounts

• Paying your annual premium in full in advance can earn you a discount.
• You can also earn discounts by agreeing to paperless communications.
• Progressive offers excellent multi-policy bundling deals.
• New homes usually cost less to insure with Progressive.
• If you use security monitoring systems or have other safety features in your home, you could qualify for discounted rates.

5: Allstate

Allstate takes the final spot on our list of New Mexico homeowners insurance providers. It is one of the USA's biggest companies in this industry and is recognized for its various coverage options and high limits for property repair and replacement.

Coverage and Features

Allstate is one of the more extensive home insurers, and some of the policies may cost a little more. In return, you gain enhanced limits, more versatile coverage, and excellent peace of mind.

Here are some features offered through Allstate homeowners insurance policies.

• Coverage for your yard and landscaping
• Brand-new replacements for damaged items
• Option of cash paid out to the depreciated value of damaged property instead of replacement
• Allstate HostAdvantage Insurance for short-term rentals up to 62 days per year
• Electronic data recovery
• Replacement cost coverage over your policy limit if costs go higher than expected
• Insurance for water pipes, sewer lines, and electricity lines
• Ordinance coverage
• Business insurance for home-based company property and liability
• Water backup coverage
• Green improvements reimbursement when you repair the damage using eco-friendly alternatives

Discounts

• Save up to 25% if you bundle your homeowners insurance with your car insurance.
• Get cheaper rates when you use autopay.
• You may be eligible for lower costs if you have a history of paying bills on time.
• If you renew your insurance policy before it is ready to expire, you could get discounted rates for the following year.
• Lower rates usually apply to new buyers and owners of new properties.
• Home safety features, including fire protection, burglar alarms, and home security monitoring systems, could make you eligible for lower premiums.
• You could save as much as 20% if you join Amica without a clear claims history from your previous insurance provider.
• Deductibles drop by $100 annually if you don't make any claims (limited to $500).

Some Other New Mexico Homeowners Insurance Companies of Note

• Farmers
• USAA
• Liberty Mutual

Conclusion

When choosing a New Mexico homeowners insurance policy, remember to look for reliable coverage in the areas you need it the most. Protect your investment with any of these home insurance companies for peace of mind and financial cover.