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New Mexico Homeowner's Insurance

Homeowners insurance in New Mexico costs about $703 per year. To get the most out of your home insurance policy, it is in your best interest to become familiar with the four main parts of the policy and the natural perils which are likely to affect your home. You may not need to worry about every peril, but not taking interest in the common ones could lead to financial disaster.

  1. Dwelling
    The part of the property where you live is the dwelling covered by the main part of your home policy. Dwelling includes a built in garage, home additions or other structures that cannot be removed without causing damage to the primary structure.
  2. Other Structures
    Everything else on the insured property that is manmade is an "other" structure. Other structures do not have to serve a functional purpose, but they might. For instance, a decorative fountain and a pool enclosure are both "other structure's, as would the fence installed around the property perimeter.
  3. Personal Property
    To track your personal property, a video home inventory is the easiest and most inclusive method. Proceed from room to room, videotaping every item in the room, no matter how trivial it may seem. Include your furniture, music collection, and the contents of your jewelry box. Keep in mind that your personal property change over time and your home inventory will need to be updated occasionally.
  4. Loss of Use
    The loss of use portion of your home insurance policy is designed to help you maintain your quality of living even if you are deprived of some or your entire home as long as the cause is a covered peril in your policy. So if you have to stay in a hotel or eat in a restaurant because your kitchen is unavailable, be sure to save the receipts and document how they are caused by the loss of use. When the inconvenience is over, your insurance company will reimburse you for the costs.

Average New Mexico Homeowner Insurance Rates vs. US

Source: USCB

Cheaper New Mexico Home Insurance

The key to cheaper home insurance lies in finding ways to earn discounts, not in reducing your coverage. There are three areas where you can look for discounts and savings: your home security, the risks associated with your family's well-being, and your credit score. While your individual savings will vary, these tips will help you save on premiums without sacrificing your family's security.

  • Home Security
    In New Mexico, the burglary rate is 10.21 for every 1000 people, the national burglary rate of 5.17. But you can reduce the risks even more by doing things like installing a fence around the property. Insurance companies perceive you making the home more secure as a proactive way to reduce their risks, and they offer discounts for doing so. Not only will the fence earn a discount, either. If you install deadbolts in your doors or have a professional alarm system put in, the discounts get even bigger.
  • Reduce Insurance Risks
    You might not think so, but just trimming the trees around your property can save money on home insurance. Trees are a special type of insurance risk, because they cause damage to your home and other structures as well as becoming a liability risk for the surrounding property belonging to other people. Just removing dead trees and branches makes your home safer and less risky to insure.
  • Credit Score and Insurance Risk
    If your credit score is better than 676, you are above the state average credit score. For insurance companies, the higher your credit score is, the less of a financial risk you are. Credit scores are the primary way insurance companies have to assess the financial risk of insuring you and your property, so take the time to clean up your credit history, make sure that it free of errors and monitor it regularly to be sure that no one is trying to steal your identity.

Home Characteristics Affecting New Mexico Insurance Rates

The material your home is made from can affect the cost of your insurance. For example, a home made of stone is more durable and subject to fewer causes of deterioration than a home made from wood. Additionally, the age of your home figures into the equation, and older homes would be better protected with full replacement cost insurance as opposed to the default actual cash value, which pays out based on the home value minus depreciation.

Local Natural Disasters New Mexico Homeowners Should Consider Protecting Against

It is the responsibility of the home owner to know what dangers their home may face and to purchase the coverage needed to protect it. To help you with that task, here is some information about different natural perils and notes on how to be protected from each one.

  • Earthquakes
    Ranked at 11 out of 51, New Mexico home owners should consider picking up earthquake coverage. This coverage may not be available through conventional channels but you can get it from high risk pools such as the FAIR plan.
  • Flood
    New Mexico residents filed 36 claims in 2009, a comparatively low number. But since there is a danger of minimal flooding, you should look into adding flood coverage to your policy, if only to be covered against an unusually rare event.
  • Hail
    Hail occurs in every state and causes a varying amount of damage, from little at all to severe. Unless it is named as an exclusion, you have nothing to worry about from hail.
  • Hurricanes
    Hurricanes do not affect New Mexico, but high winds sometimes do. Wind damages are part of the basic home insurance policy, and that means you probably do need to take any additional action in regards to this peril.
  • Tornadoes
    With only 8 tornadoes expected in an average year, New Mexico home owners have little worry about. Make sure that tornadoes are not specifically excluded from your policy and then stop worrying about them.
  • Wildfires
    Around 74,749 wildfires affect our country each year, and they can spring up anywhere. The good news is that as long your policy does not exclude wildfire, you are completely covered by default.

New Mexico Homeowners Insurance Optional Coverages

Personal injury liability pays for injuries that other people suffer while on your property, but it may not be enough, especially if you are sued as a consequence of the injury. To prevent someone from trying to take you for all you are worth, an umbrella liability policy gives you additional liability protection for all your insurable liability needs. And if your personal property is 10% or more of your home insurance face value, picking up extra personal property insurance will give you more protection in case of a total loss, such as that caused by a fire or other catastrophe.

Important Contact Information

New Mexico Department of Insurance
P.O. Box 1269
Santa Fe, NM 87504-1269
Phone: (888) 427-5772
Website

Home Insurance Guides for Nearby States

New Mexico Insurance Agents

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