Homeowners Insurance in New Mexico

New Mexico homeowners can rest more easily knowing they don’t have to deal with natural disasters like hurricanes and major earthquakes. But they may have to cope with wildfires, tornadoes and flooding. Here’s how to choose the right New Mexico home insurance.

How do I get flood insurance in New Mexico?

Even though New Mexico is relatively dry, heavy rains and snowmelt can cause flooding. New Mexico homeowners can buy flood insurance through the National Flood Insurance Program (NFIP), a federal program. To do so, your community must participate in the NFIP. You can buy an NFIP flood policy through any New Mexico home insurance agent.

What does New Mexico homeowners insurance cover?

A standard New Mexico home insurance policy will cover fire, including wildfires. You can check the current New Mexico wildfire alerts here.

A standard policy also covers wind, and that can include tornado damage. A tornado recently destroyed 10 homes in Dexter, New Mexico, in March 2019.

A typical home insurance policy in New Mexico has these main coverage types:

1. Coverage A - Dwelling: For house damage.
2. Coverage B - Other structures: For structures not attached to a house, such as a garage.
3. Coverage C - Personal property: For personal property, meaning all your belongings.
4. Coverage D - Loss of use: For extra expenses if you have to temporarily move out because of house damage.
5. Coverage E - Personal liability: For others’ injury or property damage that you’re legally responsible for.
6. Coverage F - Medical payments to others: For quick payment of others’ smaller medical bills. This coverage is often in small amounts, such as $1,000 to $5,000.

How much is New Mexico home insurance?

The average annual New Mexico homeowners insurance premium is $996 for a common policy type, called an HO-3, according to the National Association of Insurance Commissioners. That’s lower than the nationwide average of $1,192 a year.

20 largest New Mexico homeowners insurance companies