Laws Pertaining to New Mexico Homeowners Insurance

In New Mexico, there is no law stating that you must have homeowners insurance, however; most mortgage lenders will require home insurance before closing on a loan. In most cases, if you have a lapse in insurance, it will be difficult to obtain insurance from a new company because they see that lapse in coverage as a high risk. It may be more expensive to insure, or you may be denied coverage by a company, which is why it is so important to have home insurance on your new purchase, even if you’ve bought it out right.

Purchasing a home is one of the biggest purchases you can make in life, and it is important to keep your home and assets protected. In the event that your home were to be destroyed by fire, or any other peril, having it properly covered is the most important thing. Homeowners insurance in New Mexico is very affordable, and there are plenty of things you can do to keep your insurance premiums cheap while still staying protected.

Best Homeowners Insurance in New Mexico

Purchasing a new home? Needing to get home insurance on that home before you are able to close on the loan? When looking for homeowners insurance, it can seem like a lengthy, time consuming process.

There are so many questions being asked, you may not know what coverages you actually want, or need. Our agents at A Plus Insurance are dedicated to finding you the best coverages, for the cheapest price.

We are able to shop multiple insurance providers to compare rates, and do all the leg work for you keeping your search for insurance painless, and easy.

Bundling options with Homeowners Insurance in New Mexico

Bundling multiple policies through one insurance provider will give you a ‘bundle discount’ on each insurance policy you have, helping to keep the cost low and affordable for your New Mexico homeowners Insurance. We offer many lines of products, such as Auto, motorcycle, RV, motorhome, business insurance, commercial, home, and even boat insurance. Any type of insurance you need, we have you covered! On average, bunding your home insurance with your auto insurance could save $150-$200/year just on the home, and $20-$30/month on the auto.

Homeowners Insurance in New Mexico: Coverage Options

Lets dive into the basics of your homeowners insurance coverages to get you a better understanding of what coverages you may need to properly cover your big investment. Most of these coverages are a set percentage of the Dwelling Coverage, and can be adjusted for greater coverage. Most insurance companies also offer different endorsements or riders.

Coverage A- Dwelling

This coverage will pay for damage or destruction to the house, or any attached structures such as a garage, fences, patio, etc. You want to choose the amount of dwelling coverage desired, which would generally be the cost to repair or rebuilt the home at the same value, minus the land.

Coverage B- Other structures

Other structures coverage will cover a detached garage, or car port, deck, swimming pool, guest house, or shed. Basically any structure that is not attached to the house itself. The coverage is typically a percentage of the dwelling coverage amount you choose.

Coverage C- Personal Property

This is a set amount or percentage which will cover personal contents inside the home such as furniture, clothing, appliances, cabinetry, etc., in the event they are damaged, destroyed, or stolen.

Coverage D – Loss of Use

This coverage will pay for additional living expenses if your home becomes uninhabitable due to a covered loss. It will pay for things like hotel, transportation, and food.

Coverage E- Liability

Liability protects you against financial loss if you are sued, or someone where to suffer injury while on your property.

Coverage F- Medical Payments

Coverage for medical/hospital bills for person(s), other than household residents, that may have been injured on your property.

Cheapest Homeowners Insurance in New Mexico

Insurance prices will vary depending on your location, and certain characteristics of the home. If you are in an area that has high winds, which results in a large number of insurance claims, or an area with high crime rate, you may see more expensive homeowners insurance prices.

It is important to shop around, and check several home insurance companies to ensure you are getting the best coverage, and the best price. Many Insurance companies differ in price, and some are able to offer more discounts than others, keeping prices cheap and affordable.

Which companies offer Homeowners Insurance in New Mexico?

Tired of searching the internet for home insurance companies, only to find out they may not cover your area or your home? We have compiled a list of reputable home insurance companies in your area to make your search for cheap homeowners insurance easier. When obtaining insurance quotes, make sure you are comparing ‘apples to apples’ with your coverages.

Homeowners Insurance in New Mexico: Rates by company

Insurance prices will vary depending upon the insurance company you go through. Some home Insurance companies just offer cheaper rates in certain areas, than other companies may be able to.

Discounts vary depending upon the home insurance company, so that is always a factor as to why prices fluctuate, as well as the coverages that are offered by each company. If you are currently insured, it is always recommended to shop around every year or so to see if there is a cheaper option out there for you.

Most common causes for claims

Homeowners Insurance claims are quite common, and range for various reasons. Loss of use is one of the biggest claims seen in New Mexico.

This covers for additional living expenses if your home becomes uninhabitable in the event of a covered claim. The Insurance company will pay out a percentage of your dwelling coverage to cover for things like hotel, transportation and food until you can return to your home. Weather related Injuries is also a common claim in New Mexico.

If you are in an area with higher theft claims, your insurance premium will likely be more expensive, because that area may be considered ‘high risk’ for an insurance company. If you have made several insurance claims in the past on other home policies, you may see more expensive rates, or may even be denied coverage by a company.

Discounts Available for Homeowners Insurance in New Mexico

Everyone loves to save money where they can. Luckily, there are several discounts that can be applied to your home insurance policy to help keep your premium affordable. One of the biggest money saver discount is a bundle discount. When you bundle your insurance policies together, such as your auto, home, RV and motorcycle, you are getting the maximum savings on each insurance policy.

This can lead to hundreds, even thousands of dollars in savings over the years. Other discounts that may be specific with each company include, smoke alarm discount, security devices such as cameras or alarms to avoid theft and break-ins, reducing the amount of claims. Also, characteristics of the home can lead to instant savings, such as the age of the home, the location, the age of the roof, the type of construction, and advanced purchases.

Additional New Mexico Insurance
Liability Insurance | New Mexico
Full Coverage Insurance | New Mexico
Motorcycle Insurance | New Mexico
Broadform / Non-Owners | New Mexico

Last Updated on April 24, 2024 by Marlon Moss