Updated: October 22, 2025
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The average cost of homeowners insurance in New Mexico in 2024 is $1,857, $566 less than the national average of $2,423. Beyond coverage amount, credit rating has the largest impact on premiums, with a difference of $3,194 between the highest and lowest premium amounts.
If your rates have recently increased, we've analyzed the cheapest policies in New Mexico. The insurance provider you choose also affects your premium costs.
MoneyGeek’s home insurance calculator will give you a ballpark estimate of your cost — It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Oct 31, 2025
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Table of Contents
To establish the average cost of homeowners insurance in New Mexico, MoneyGeek used quotes from various providers for a profile that reflects the average homeowner.
These rates reflect the average cost of home insurance in New Mexico as of 2024.
In New Mexico, the average homeowners insurance premium is $1,857 for policies with $250,000 in dwelling coverage, $125,000 in personal property and $200,000 in liability coverage. This is less than the national average of $2,423. Understanding how much coverage you need matters. Your policy should cover the complete rebuild of your home, personal property and other essentials in case of a total loss.
As coverage needs increase, so does the premium. A New Mexico homeowner with $100K dwelling coverage pays an average of $937 annually, while $500,000 dwelling coverage raises the average premium to $3,368.
| $100K Dwelling / $50K Personal Property / $100K Liability | $937 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $1,857 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $3,368 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $4,768 |
Premiums for homeowners insurance in New Mexico vary between providers even for similar coverage levels. A policy from Foremost Insurance costs around $1,650 annually, while State Farm quotes closer to $2,064 for comparable protection.
New Mexico has many strong providers. Differences in underwriting lead to a range of premium quotes, so compare options.
| Foremost Insurance | $1,650 |
| State Farm | $2,064 |
Homeowners in New Mexico with excellent credit pay an average annual premium of $1,317 for homeowners insurance, $540 less than the state average of $1,857. Those with poor credit face much higher rates, averaging $4,511 annually, $2,654 above the state average. Credit scores directly affect insurance premiums: lower credit scores lead to higher costs.
You can't improve your credit score immediately, but working on it over time lowers insurance rates. Compare insurance providers to find a better rate. You can evaluate different insurers in under 15 minutes to see which saves you the most.
| Poor | $4,511 |
| Below Fair | $3,341 |
| Fair | $2,480 |
| Good | $1,857 |
| Excellent | $1,317 |
Your roof type affects homeowners insurance premiums in New Mexico. Materials like composition shingles result in standard rates. More durable materials like tile lead to lower premiums due to increased resistance to weather-related damage.
Construction materials also affect insurance costs. Homes built with fire-resistant materials or superior construction techniques benefit from reduced insurance rates. Standard frame construction, which is less resistant to severe weather events, carries higher premiums.
The table shows how premiums change based on your home's materials.
| $100K Dwelling / $50K Personal Property / $100K Liability | $937 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $1,857 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $3,368 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $4,768 |
| $1M Dwelling / $500K Personal Property / $1M Liability | $6,155 |
Homeowners insuring new construction in New Mexico pay less for their annual premium than those with existing homes. The average cost for a newly built home is $1,045, $812 lower than the $1,857 average for older homes. The table shows how premiums vary between new and existing construction to help you find the right coverage amount.
| Existing Construction (2000) | $1,857 |
| New Construction (2023) | $1,045 |
Homeowners in New Mexico with a claim-free record for five or more years pay an annual premium of approximately $1,857 for their homeowners insurance. If there's been one claim filed in the past five years, the premium jumps to about $2,225, an increase of $368.
For those with two claims within the same time frame, the annual cost climbs to roughly $2,416, $559 more than the average for claim-free homeowners. These figures show the financial benefit of maintaining a claim-free history.
| Claim free for 5+ years | $1,857 |
| 1 claim in past 5 years | $2,225 |
| 2 claims in past 5 years | $2,416 |
In New Mexico, wildfires and flooding are the biggest threats to homes. Wildfires are usually covered by homeowners insurance. Standard home insurance doesn't cover flood damage, so you'll need extra insurance for that.
Premiums in the cities we analyzed range from $1,319 to $1,442. In Albuquerque, the annual premium is $1,442, while Las Cruces has a lower average at $1,319. Location affects premiums due to varying risks like crime rates and weather patterns. City-based factors impact insurance costs compared to other variables.
| Albuquerque | $1,442 |
| Las Cruces | $1,319 |
Straightforward shopping for home insurance in New Mexico is possible. Understanding what affects your rate helps you find the best deal. Here's how.
Ask about bundles and other savings.
Choose a provider with good service.
A higher deductible can lower premiums.
Buy the policy that fits your needs best.
In New Mexico, homeowners can save by bundling their home and auto insurance policies. With a multipolicy bundle, you could save $283 to $549 on your combined insurance costs, averaging a 14.8% discount. For detailed information on how bundling impacts your insurance expenses, explore our detailed bundle analysis.
New Mexico residents can benefit from various home insurance discounts. To maximize savings, inquire about discounts when obtaining a quote.
Learn how these and other discounts can lower your premiums in our guide on saving with discounts.
The insurer with the lowest average premium for excellent credit in New Mexico is $1,317. For more cheap insurers, visit MoneyGeek's Cheapest Homeowners Insurance.
Damage from wildfires, a common natural disaster in New Mexico, is covered by homeowners insurance.
Flood insurance is not typically included in a standard home policy. It can be purchased through the National Flood Insurance Program or a private flood insurer, and some home insurers offer it as an endorsement.
Credit rating is the biggest factor affecting homeowners insurance prices in New Mexico, with a difference of up to $3,194 between excellent and poor credit.
Bundling in New Mexico saves between $283 and $549 on average. Learn more at Best Home and Auto Bundle in New Mexico.
When navigating the intricacies of homeowners insurance in New Mexico, a wealth of resources is available to help you make informed decisions. Below is a curated list of links that offer guidance and tools for homeowners in the Land of Enchantment:
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
