7 Best Homeowners Insurance Companies in New Mexico of 2023
New Mexico's unpredictable weather, from intense summer monsoons to severe winter snowstorms, makes it crucial for residents in Albuquerque, Santa Fe, Las Cruces, and Rio Rancho to secure proper homeowners insurance. This coverage should not only come from a top insurance provider in the state but also include flood and earthquake protection.
At PropertyNest, we strive to help you find the best insurance coverage for your unique needs, with factors beyond price considered. We've analyzed various criteria to present a concise breakdown of the leading homeowners insurance companies in New Mexico. Discover the perfect insurance provider for your situation.
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The Best Homeowners Insurance Companies in New Mexico
- Liberty Mutual:Best for Tech-Savvy Policyholders
- Allstate:Most Additional Coverages Offered
- Amica: Best for Having Different Policy Types to Choose From
- State Farm: Best Inflation Protection
- Farmers: Cheapest Premiums in New Mexico
- Nationwide: Best Standard Coverage
- Chubb: Best for Expensive Homes
Liberty Mutual: Best for Tech-Savvy Policyholders
Liberty Mutual has many digital tools available for policyholders, including a robust website where you can:
- View policy options
- Manage billing
- File and manage claims
- Communicate with customer service
In addition, all of these can be done from their mobile app, which is very user-friendly.
Read a full Liberty Mutual home insurance review.
| J.D. Power (out of 1,000) | 805 |
|---|---|
| A.M. Best - Financial Strength Rating | A |
| BBB | A+ |
| NAIC Complaint Index | 2.37 |
Allstate: Most Additional Coverages Offered
Founded in 1931, Allstate is one of the largest insurers in the United States, with over $50 billion in revenues in 2021.
Among companies we looked at, Allstate’s premiums are $70 more expensive than the average premium of its chief competitor – State Farm.
For people shopping for the best homeowners insurance in New Mexico and who want more coverage options instead of the lowest price, they’ll be impressed with Allstate’s coverage options.
Read a full Allstate homeowners insurance review.
| J.D. Power (out of 1,000) | 815 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| NAIC Complaint Index | 2.05 |
| BBB | A- |
Amica: Best for Having Different Policy Types to Choose From
- Available in 48 states & Washington, D.C.
- Quote access: Online & by phone
Amica was founded in 1907 as an auto insurance company in Rhode Island and has grown by adding a variety of coverages in 48 states, including homeowners insurance.
Amica offers three different homeowners policies to choose from:
The Standard Choice
The Standard Choice policy has standard homeowners coverage numerous options, including replacement costs for your home and personal property, water backup coverage, and extended device protection (computers, pads, phones, etc.). You’ll pay extra premiums for these options.
The Platinum Choice
The Platinum Choice policy makes the additional options for the Standard Choice policy standard coverage and broadens coverage for valuables and collectibles. Platinum Choice is also an HO-5 policy, meaning your personal property is covered for any peril except those specifically excluded in your policy.
Dividend Homeowners Policy
Policyholders can also choose a dividend homeowners policy, where 20% of premiums paid are returned each year. However, these policies are not offered in every state, and return rates can vary.
| J.D. Power (out of 1,000) | 849 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| BBB | A+ |
| NAIC Complaint Index | 0.32 |
State Farm: Best Inflation Protection
Inflation is on everyone’s mind, and considering how building materials and construction costs continue to rise, the cost of replacing a home can be anxiety-producing.
State Farm has done an excellent job alleviating this concern. Their Inflation Guard coverage increases the dwelling coverage amount each year to account for construction and material costs increases.
State Farm also offers additional coverages for:
- Cyber-crime events
- Identity-restoration after theft
- Valuables insured for their appraised value
Read a full State Farm homeowners insurance review.
| J.D. Power (out of 1,000) | 829 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A+ |
| NAIC Complaint Index | 1.77 |
Farmers: Cheapest Premiums in New Mexico
At the time of this review, Farmers offered the cheapest homeowners insurance in New Mexico at $891 per year, which is 33% less than the state average.
In addition to their cheap rates, Farmers offers excellent service and online tools.
While Farmers is great for people on a tight budget, their homeowners insurance policy is not highly customizable. There are only a few add-ons to choose from, including contents replacement cost coverage and eco-rebuild coverage.
Read a full Farmers homeowners insurance review.
| J.D. Power (out of 1,000) | 792 |
|---|---|
| A.M. Best - Financial Strength Rating | A |
| BBB | A- |
| NAIC Complaint Index | 0.56 |
Nationwide: Best Standard Coverage
For homeowners looking for excellent standard coverage, Nationwide is a perfect choice.
One of the features that sets Nationwide apart is its credit card coverage. It protects you from costs and losses incurred if someone forges your checks, if you have unauthorized credit or debit card transactions, or if you receive counterfeit money.
Additionally, its standard coverage includes guest medical payments, loss of use if you're displaced from your home, and ordinance or law insurance which brings your home back up to code after a covered loss.
| J.D. Power (out of 1,000) | 816 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| BBB | A+ |
| NAIC Complaint Index | 0.88 |
Chubb: Best for Expensive Homes
- Available in 50 states & Washington, D.C.
- Quote access: Agent only
For high-net-worth with high-value homes, Chubb can’t be beaten.
While it’s not a surprise you’ll pay more for Chubb than some other national insurers, their coverage is the most affordable for high-value homes because this is the company’s preferred target market.
Catering to those who demand excellence, Chubb also offers an exceptional customer experience. Coverage is sold by brokerages that cater to high-net-worth individuals, and brokerages must pass a comprehensive evaluation to receive authorization to sell Chubb homeowners insurance.
Chubb’s homeowners policy also has several features other insurers charge extra for. For example, HomeScan covers issues in your home that you discover and that need immediate attention before they cause damage.
In addition, replacement cost coverage, an option with most other insurers, comes standard with Chubb’s basic homeowners policy.
| J.D. Power (out of 1,000) | 809 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | D- |
| NAIC Complaint Index | 0.21 |
Are There Ways to Reduce the Cost of Homeowners Insurance?
The biggest way to reduce the cost of your premium is to ask your insurer for discounts. Some of the most common discounts that New Mexico insurers offer include a multi-policy or bundle discount if you have your homeowners insurance and another type of coverage with the same carrier. With some companies, you can save as much as 25%.
Being Claims-Free
If you don’t make a claim during a set period, typically three years, you’ll qualify for a discount.
Safety Features
If you live near a fire hydrant or a fire station and have security devices in your home, such as alarms, security cameras, deadbolts, and fire extinguishers, you’ll qualify for a discount with most insurers.
Age
Some companies will give you a hefty discount if you are 55 or older and are retired.
Are There Other Ways to Lower Your Homeowners Insurance Premium?
Since lenders require homeowners insurance, your policy should be affordable. Besides bundle discounts, there are other ways to offset your cost, including:
Shopping around
You should get insurance quotes from several insurers to compare rates, coverage, discounts, and additional features of each company to find the best insurance that suits your needs.
Improve or maintain your credit score
Most homeowners insurance companies use your credit score to determine your rate.
If you have a high credit score, your premium will be lower. This means the insurer believes you’ll pay on time and be less likely to miss a payment.
You'll probably have a higher premium if you have a score lower than 650. This is because homeowners with lower credit scores are statistically more likely to file claims.
So, it’s wise to improve and maintain your credit score. You can do so by paying down credit cards, paying more than the minimum payment on secured and unsecured loans, and reducing your overall debt.
Remodel Your Home
You'll get a discount if you remodel your home because you’re less likely to file a claim with newer wiring, plumbing, and appliances.
Raise Your Deductible
Like health insurance, the higher your homeowners insurance deductible, the more money you can save on your premiums.
The standard deductible in the home insurance industry is usually $500. However, if you can afford to raise your deductible to $1,000, you may save as much as 25%.
Conclusion
Some excellent insurance companies offer homeowners insurance in New Mexico, and we believe we’ve brought you the best in this review. While price is always a consideration, weigh all the factors we’ve mentioned. If you ever have a large claim, service will be foremost on your mind, not your premium.
Our Methodology
How We Ranked and Picked the Best Homeowners Insurance Companies in New Mexico
To determine the best companies that provide homeowners insurance, we looked at several factors, including pricing, coverage options, technology, the insurer’s financial strength, and the discounts an insurer offers that can lower your premium.
Discounts
We concentrated and recommended companies that had multiple discounts. This ensures that you can purchase a policy at the lowest possible rate.
The multi-policy discount is the most favorable because it significantly lowers your premium. We included companies that offered this discount.
Coverage
We looked at homeowners insurance policies based on how much coverage they offered. A range of coverages is important for a company to have because it allows you to customize a policy and tailor it to your needs.
Technology
If a company’s website and app allow you to manage most of your insurance needs electronically or if both are easy to use, that company was considered.
Customer Reviews
We looked at many sites offering customer reviews to narrow our selections further. The companies with the most positive reviews were included in our analysis.
Price
The cost of a homeowners insurance policy should be reasonable. Pricing has to be fair, and a company should also have discounts to make a policy affordable to most people. Consequently, we looked at companies that had affordable premiums.
