How Much Is Flood Insurance in New Mexico? Average Flood Insurance Cost and Coverage

In New Mexico, flood insurance rates vary depending on the risk factors present in your home. Some of those include ground elevation, the type of foundation, construction details, building age and more.

Renters or homeowners insurance policies don’t offer coverage for flooding caused by natural disasters. According to the Federal Emergency Management Agency (FEMA), an inch of water can cost up to $25,000 worth of damage.

TABLE OF CONTENTS

• Cost of Flood Insurance in New Mexico
• Flood Insurance Companies in New Mexico
• Flood Insurance Coverage
• Flood Insurance Cost Factors in New Mexico
• Do You Need Flood Insurance?
• New Mexico Flood Insurance FAQs

The annual average cost of flood insurance in New Mexico is $951. Insurance companies tend to charge homeowners more if they live in high-risk flood areas or if other individual property risks arise.

New Mexicans pay $184 more than the national average cost for flood insurance every year because New Mexico may have more flood-prone areas than most other states.

MoneyGeek discovered that Mora County has the cheapest annual average flood insurance premium at $413. On the other hand, Torrance County has the most expensive yearly average flood insurance premium at $1,568.

Below is a table that shows how much flood insurance costs in New Mexico.

New Mexicans looking to protect their homes and other properties from flooding may contact various private insurance providers or the NFIP. Private insurers provide individuals with standard policies similar to what the NFIP offers.

Moreover, private insurance companies also offer an excess policy that provides additional protection beyond what you’d get from an NFIP policy.

Choosing a private insurance provider may be better for households outside an NFIP community or that find NFIP coverage insufficient.

In New Mexico, the NFIP continues to work with different insurance companies to give homeowners flood coverage. MoneyGeek collated a list of NFIP-accredited insurance companies and their contact details.

There are no special requirements that you need to submit. Individuals can easily get flood insurance in New Mexico. Start by contacting the NFIP at 877-336-2627 or call your home insurance agent.

Remember that the NFIP has a 30-day waiting period. MoneyGeek recommends that you get your flood insurance policy as soon as possible, and you can do this by reaching out to private insurers. However, they may also have a waiting period of at least 10 days.

It’s best to consult and confirm with your agent.

In New Mexico, flood insurance protects your home from damage caused by natural floodwaters. Plus, it includes your personal effects. With flood insurance, an inch of water flooding your home will no longer cost you FEMA’s estimate of $25,000.

While flood insurance protects your home and personal belongings, it doesn’t cover vehicle flooding, documents, basement items or cash.

Flood insurance has two main components. The first is building coverage, which protects the structure itself. The following items are all covered by building coverage:

• Foundation walls
• Electrical systems
• Plumbing systems
• Built-in appliances and furniture
• Permanently installed carpets and rugs
• Furnaces.

Getting an NFIP policy protects you with up to $250,000 worth of coverage.

The other primary component of flood insurance is contents coverage. This portion of your policy provides coverage for the personal items stored within your home. Some of these items include:

• Clothes
• Washers and dryers
• Artwork
• Electronic gadgets
• Furniture

An NFIP policy lets you get a maximum of $100,000 worth of contents coverage.

Until 2021, the location of your home was the only factor used to determine its flood insurance costs, and it’s still the most important element. FEMA lets homeowners review the historical flood risk of U.S. counties for every state through its interactive maps.

According to FEMA, Hidalgo County has had the fewest flood events (8) since 1996, while Eddy County has had the most flood events at 122. The average cost of flood insurance in these counties is $496 and $1,183, respectively.

In October 2021, FEMA introduced Risk Rating 2.0, which reviews individual property risks, such as elevation, flood frequency, building age and more, in addition to location. The rating system gives ample information, so insurance providers give more accurate quotes.

However, your premiums still vary significantly depending on where you live. MoneyGeek defines each flood insurance cost factor in the table below.

As previously mentioned, renters and homeowners insurance generally don’t cover flood insurance. Any building may be susceptible to damage from flooding. Therefore, buying flood insurance is a wise choice to protect your property and save money.

Plus, government-backed mortgage lenders require flood insurance for any homeowner living in a high-risk flood zone.

With private flood insurance, insurance companies need to pay claims if your property gets flooded, even without a presidential disaster announcement. Meanwhile, federal disaster assistance is limited to a maximum of $5,000 per household. Damages may cost much more than that, and flood insurance provides larger payouts.

Getting flood insurance provides another layer of protection, security and peace of mind.

You might still have some questions remaining about flood insurance in New Mexico. MoneyGeek answers these commonly asked questions to guide your decision.