The Best Home Insurance in New Mexico for 2025

Amica and Chubb are among the best home insurance companies in New Mexico, according to our analysis.

We analyzed data from more than 30 insurance companies to help you find the best home insurance in New Mexico. Below are the insurers that earned 4.5 stars or more in our analysis.

Rates are based on a sample homeowner with good credit, $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible.

Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state.

» MORE: The best home insurance companies

The best home insurance companies in New Mexico

Here's more information about the best homeowners insurance companies in New Mexico.

Amica stands out for its customer service and broad range of coverage options. The company has drawn far fewer consumer complaints to state regulators than expected for an insurer of its size, according to the National Association of Insurance Commissioners.

You can customize your policy with extra coverage above your dwelling limit, in case your house costs more to rebuild than expected. You may also want to add coverage for damage from water backups or recovery from identity theft.

» READ MORE: Amica homeowners insurance review

Chubb generally serves affluent policyholders with high-value homes, offering lofty coverage limits and plenty of perks. For example, the company covers water damage from backed-up sewers and drains, and pays to bring your home up to the latest building codes during reconstruction after a claim. (Many insurers charge more for these types of coverage.)

New Mexico homeowners can also sign up for free Wildfire Defense Services. These services include personalized recommendations for protecting your home and deployment of firefighters to your house if a wildfire is approaching.

» READ MORE: Chubb homeowners insurance review

Allstate is one of the largest home insurance companies in the U.S. The company offers many ways to customize your policy, including replacement cost coverage for your personal property and coverage for water damage caused by backed-up drains. Other, less common options may include home-sharing coverage and reimbursement for replacing damaged items with energy-efficient versions.

You may also be able to upgrade your policy with the Enhanced Package. One benefit of this package is Deductible Rewards, which takes $100 off your deductible for signing up, plus an additional $100 off for each year you go claim-free. And if you do file a claim, your rates won’t go up.

» READ MORE: Allstate homeowners insurance review

Cincinnati Insurance sells homeowners policies through independent insurance agents, with various options for standard and high-value homes. You may be able to add coverage for things like identity theft, personal cyber attacks or certain types of water damage.

Cincinnati may offer you a discount for bundling home and auto insurance, having a newer home or installing a centrally monitored alarm system.

» READ MORE: Cincinnati Insurance homeowners insurance review

Farmers stands out for its lengthy list of discounts, including ones for installing protective systems like fire alarms and sprinklers, not smoking for the past two years, and paying your premium on time.

Add-on options include personal property replacement cost coverage, which will fully reimburse you for the cost of replacing a stolen, damaged or destroyed item. You may also want to buy water backup coverage, which applies if sewer lines or sump pumps back up and damage your home.

» READ MORE: Farmers homeowners insurance review

Nationwide’s standard homeowners policies include ordinance or law coverage, which pays to bring your home up to the latest building codes after a covered claim. They also include coverage for unauthorized credit or debit transactions. For an extra cost, you may be able to add coverage for things like water backup, identity theft and stronger materials to replace your roof.

Depending on how much personal assistance you need, you can get a quote for homeowners insurance on the Nationwide website or work with a local agent instead. You can also use the website to pay bills, file claims or check claim status.

» READ MORE: Nationwide homeowners insurance review

Openly offers homeowners insurance with generous coverage. Its policies include guaranteed replacement cost coverage for the structure of your home, which means the company will pay whatever it takes to rebuild your home if it’s destroyed.

Unlike many other insurers, Openly doesn’t have dog breed restrictions that could affect your ability to get liability coverage. It may also be a good bet for homeowners with collections of jewelry or other valuables, with up to $100,000 of blanket coverage available for these items.

» READ MORE: Openly homeowners insurance review

As America’s largest home insurer, State Farm stands out for its long list of coverage options. Its policies generally include extra dwelling coverage in case it costs more than expected to rebuild your home after a covered disaster. You may also be able to add coverage for things like identity theft, damage from backed-up drains and personal injury liability.

State Farm offers a free Ting device as a perk for home insurance policyholders. Ting is a smart plug that monitors your home’s electrical network to help prevent fires.

» READ MORE: State Farm homeowners insurance review

Travelers offers a robust online experience. You can use the website to get a homeowners insurance quote, file and track claims, make payments, and learn about insurance basics.

Its coverage offerings are similarly strong. For example, you may be able to add extra coverage in case the dwelling limit on your home isn’t enough to rebuild your house after a disaster. One unique option is Travelers’ green home coverage, which pays extra if you want to use eco-friendly materials when repairing or rebuilding your home after a covered claim.

» READ MORE: Travelers homeowners insurance review

USAA sells homeowners insurance to veterans, active military members and their families. If that description fits you, you may want to consider a USAA policy. That’s because the company’s homeowners insurance has certain features that other insurers may charge extra for.

For example, USAA automatically covers your personal belongings on a replacement cost basis. Many companies pay out only what your items are worth at the time of the claim, which means you may not get much for older items. USAA pays enough for you to buy brand-new replacements for your stuff.

» READ MORE: USAA homeowners insurance review

How much does homeowners insurance cost in New Mexico?

The average annual cost of home insurance in New Mexico is $1,595. That’s 17% less than the national average of $1,915.

In most U.S. states, including New Mexico, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.

In New Mexico, those with poor credit pay an average of $3,575 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 124% more than those with good credit.

» MORE: Does your credit score affect home insurance rates?

Average cost of homeowners insurance in New Mexico by city

How much you pay for homeowners insurance in New Mexico depends on where you live. For instance, the average cost of home insurance in Albuquerque is $1,300 per year, while homeowners in Las Cruces pay $1,220 per year, on average.

» MORE: What’s the average cost of homeowners insurance?

The cheapest home insurance in New Mexico

Here are the insurers we found with average annual rates below the New Mexico average of $1,595.

» MORE: The cheapest homeowners insurance

Common risks for New Mexico homeowners

Here are some of the most common risks New Mexico homeowners may face, along with steps you can take to insure your home against them.

Windstorms

Standard home insurance policies typically cover damage caused by extreme winds, but your policy may have a separate wind and hail deductible. (A deductible is the part of a claim that you’re responsible for paying.) These deductibles are often a percentage of your dwelling coverage, such as 1% or 2%. If your house has $250,000 worth of dwelling coverage and a 1% wind deductible, you’d have to pay for the first $2,500 of wind damage yourself.

Wildfire

Most homeowners insurance covers fire damage, but read your policy in case of exclusions. Pay particular attention to the dwelling coverage limit, which is how much the insurance company will pay to rebuild your house. Check with your insurer to ensure you have enough coverage to rebuild if necessary. Learn more about home insurance and wildfires.

Flooding

Flood damage is typically not covered by standard homeowners insurance policies. As a result, homeowners in at-risk areas may need to purchase separate flood insurance. You can get flood coverage at any time, but there’s often a 30-day waiting period before the insurance takes effect.

» MORE: Why you might want flood insurance — even if it’s not required

Earthquakes

Homeowners insurance generally doesn’t cover damage caused by earthquakes. For that, you’d need additional earthquake insurance. Be aware that earthquake insurance often has a separate deductible, which can be 10% to 20% of your dwelling coverage limit. For example, if you have a 20% earthquake deductible and $200,000 of dwelling coverage, you would need to pay $40,000 for earthquake damage before your insurance covers anything.

» MORE: Home insurance calculator: Estimate your rate

New Mexico insurance department

The New Mexico Office of Superintendent of Insurance oversees the state’s insurance industry. Its website has information about insurance and disaster preparation, as well as answers to common questions. You can also file a complaint against your insurer on the department's site. If you have insurance questions, call the Consumer Assistance Bureau at 505-827-4549.

Amanda Shapland contributed to this story.