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Laura Berry

Former Insurance Agent

Former Insurance Agent

Joshua Adamson

Joshua is a copywriter at Obrella who for more than 10 years has been creating content about insurance, health care, and more. He helps companies explain complex insurance subjects in simple ways so that customers can make smart buying decisions. He spends way too much time binge-watching Netflix, loves the outdoors and has a cat who tolerates him.

UPDATED: Mar 7, 2024

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If you’re like most people, your home is one of your greatest assets. Consequently, it’s important to give your home the best protection you can. Choose the right home insurance policy for your needs with Obrella, an online platform that connects you with knowledgeable insurance experts who specialize in comprehensive New Mexico home insurance policies. Agents can walk you through options from several providers, answer any questions you have, and can even bind your policy—all over the phone!

New Mexico Home Insurance Costs

Home insurance premiums in New Mexico average just $844 annually, which is nearly $200 below the national average of $1,034 per year. Lower premiums help New Mexico come in with the 19th lowest average insurance premiums in the country.

  • Median Home Value: 173,600
  • Household Income: 46,686
  • Percent of Income on Home Ownership: 31.10%

New Mexico homeowners understand the value of having the right home insurance. The median home value in New Mexico is $160,000, and the average household size is 2.6 people. New Mexico residents spend just over 31% of their household income on home ownership, and the median household income in New Mexico is $43,872. This makes New Mexico the 18th highest state in regard to how much residents spend on homeownership.

Whether you’re a new homeowner or if you’re not sure about your current policy, an insurance expert can help you find the right policy for your home. You can get quotes to keep your current coverage with other homeowners insurance policies. You can also look at your coverage limits and see if they can be adjusted while still meeting your needs. Call [mapi-phone-link /] to compare home insurance quotes in New Mexico.

What Goes into Home Insurance Premiums in New Mexico?

There are a number of factors that can influence the cost of your homeowners insurance. In calculating your insurance premium, insurance companies take into account the size of your home, the year it was built, and the cost of other buildings in the area. They also look at how long it’s been since you replaced your roof or repaired your plumbing, the type of electric wiring and plumbing, and more. 

Premiums are essentially a reflection of the risk that your insurance company assumes by providing coverage for your home. So environmental factors, local crime rates, and your credit score are also taken into account. Therefore, having a home in an area that is prone to flooding or tornadoes, for instance, will likely result in a higher premium, as will one in an area with high burglary rates.

More amenities mean more to protect. So a swimming pool or guest home can also raise your premium. However, you can often receive discounts on your home insurance policy by installing protection devices such as motion-sensor lights, security systems, and surveillance cameras.

No matter the age of your home, a little maintenance goes a long way in keeping your home bills down. Your annual premium for homeowners insurance is just one part of your home costs.

Read more: Understanding Homeowners Insurance: Does It Cover Plumbing?

What Are Your Homeowners Insurance Options in New Mexico?

The majority of New Mexico home insurance companies have multiple coverage options to pick between; here are a couple of those options:

  • HO-2: A basic policy, HO-2 insures your home in the event of all 16 classified disasters. This is a named perils policy. So if the peril is not specifically named, an HO-2 policy will not cover it.
  • HO-3: An HO-3 policy is an open perils policy. So it covers everything unless that peril is specifically excluded. Of course, insurance companies will exclude many common and uncommon perils in their policies.
  • HO-6: An HO-6 policy is designed to cover a condo. The master policy held by the condominium association, and it covers the building. An HO-6 covers everything inside the walls of the individual condo unit.
  • Landlord Policy: These are generally called dwelling policies. They cover a landlord’s liability and the building. The average cost is often lower than standard policies from homeowners insurance companies.

More information below: 

  • HO-1: Limited Coverage
    • While an HO-1 policy will cover your home in the event of the first 10 classified disasters—fire or lightning, windstorms or hail, explosions, riots, damage caused by aircrafts, damage caused by vehicles, smoke, vandalism, theft, and volcanic eruption—this type of policy is no longer available for purchase in most states.
  • HO-2: Basic Policy
    • A basic policy, HO-2 insures your home in the event of all 16 classified disasters.
  • HO-3: Standard, most popular
    • The standard policy offers the broadest home protection, with a few exceptions.
  • HO-8: Older Home
    • To protect against depreciation, this policy will usually reimburse homeowners for damage on an actual cash value basis. However, some older homes may not qualify for full replacement cost policies.

What Do Insurance Carriers Cover with Standard Policies?

Simply stated, you are only covered if the damage to your home is caused by a specific situation outlined in your policy. If your home is damaged by a flood, for instance, you will only be paid for damages if your policy specifically covers flooding. Check out the following list of common home insurance coverage terms to learn more about what kind of coverage to expect from your policy:

  • Coverage A – Dwelling
    • Protects against damage to the home and attached structures. This includes damage to the home’s plumbing, wiring, and permanent air-conditioning and heating systems.
  • Coverage B – Other Structures
    • Other Structures coverage insures any structures that are not connected to the house, such as tool sheds, guest homes, free-standing garages, and fences.
  • Coverage C – Personal Property
    • Personal Property coverage pays back homeowners in the event that a personal possession like clothes, furniture, or electronic equipment is lost or damaged. This coverage is valid whether or not the loss or damage occurs on the property so items in a storage unit, for example, would still be covered.
  • Coverage D – Loss of Use
    • If home repairs prevent you from inhabiting your house, Loss of Use coverage can help. This coverage reimburses the homeowner for their living expenses for as long as they are unable to live in their home.
  • Coverage E – Personal Liability
    • If found legally liable for injuries that occurred on their property, a homeowner can use their Personal Liability coverage, which will cover the homeowner’s financial loss.
  • Coverage F – Medical Payments to Others
    • Covers medical bills for individuals hurt on a homeowner’s property or by the homeowner’s pet.

Read more:

New Mexico Insurance Resources

The Office of Superintendent of Insurance :Provides consumer protection and works with the Property and Casualty Product Bureau to ensure compliance with state insurance statutes and rules. The office also provides fraud prosecution and deterrence, in addition to helping New Mexico homeowners like you find reputable, qualified insurance providers. As a New Mexico homeowner, you can contact:

1 (855) 427-5674
1120 Paseo De Peralta, 4th Floor
Santa Fe, New Mexico, 87504

Shopping for home insurance can be frustrating but there’s a way to make the process less strenuous. With Obrella, getting the home insurance coverage you need is quick and easy. In one simple call, you can talk about your insurance needs with a knowledgeable agent who will help you find the perfect coverage option for you. You’ll even have the ability to bind your policy while you’re on the phone!

Want to learn more about your home insurance policy options in New Mexico? Call at [mapi-phone-link /] today to talk to an insurance agent.


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