Home insurance in New Mexico costs about $149 monthly or $1,786 annually on average. Residents pay $71 less per month or $849 less annually than the national average, making it the 20th most affordable state for home insurance.
Average Home Insurance Cost in New Mexico
Updated: December 1, 2025
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$220
High
$144
Average
$104
Low
Rates updated:
Dec 06, 2025
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Key Takeaways
Depending on your financial history, home details and other personal information, home insurance costs in New Mexico can range from $801 to over $13,604.
New Mexico's home insurance premiums are the 20th most affordable in the country, at 32% below the national average.
To find the best home insurance in New Mexico, determine what coverage you need beforehand, research costs and discounts in your area, and shop around.
How Much Is Home Insurance in New Mexico?
| New Mexico Average | $149 | $1,786 | -32% |
| National Average | $220 | $2,635 | 0% |
*These rates represent a home built in 2000 out of frame with $250,000 Dwelling, $125,000 Personal Property and $200K,000 Liability coverage with a $1,000 deductible.
Why Is Home Insurance So Expensive in New Mexico?
Home insurance is expensive in New Mexico mainly because of the increasing number of claims, the high risk of severe weather and natural disasters, rising material and labor costs, and state insurance laws. Below, we explain each factor in detail:
Rising Claims
Insurance companies raise rates when they see more claims because they expect to pay out more money in the future. If your area has frequent claims, insurers view it as riskier and charge higher premiums to protect themselves from bigger losses.
High Weather Risks
Areas prone to severe weather, such as hurricanes or wildfires, face higher home insurance rates. Insurers adjust premiums upward to account for the increased likelihood of costly damage and claims.
Rising Material and Labor Costs
When the cost to repair or rebuild homes goes up due to pricier materials or labor, insurance companies raise premiums to ensure they can cover these higher expenses in the event of a claim.
State Insurance Laws
New Mexico regulations can affect insurance costs. Mandates on coverage minimums or rate-setting processes can lead to higher premiums if they increase the insurer's costs or required reserves.
What Affects New Mexico Home Insurance Costs?
For most home insurance companies, pricing is influenced by factors like:
- Coverage chosen
- Home build details
- Provider chosen
- Credit
- Claims history
How Much Does Coverage Affect Home Insurance Costs?
Coverage choice has the most impact on New Mexico home insurance rates, with annual costs ranging from $715 to $6,942. Higher coverage limits and lower deductibles increase premiums, while lower limits and higher deductibles reduce costs."
| Lowest | $100K Dwelling / $50K Personal Property / $100K Liability | 2000 | $60 | $715 |
| Highest | $1MM Dwelling / $500K Personal Property / $1MM Liability | 500 | $578 | $6,942 |
How Much Do Home Details Affect Home Insurance Costs?
Home age, construction materials and roof type rank as the second-biggest factor in New Mexico rates, with monthly costs ranging from $79 to $169. These details affect replacement costs and damage risk, creating price variations.
| Lowest | New | Superior | Composition | $79 | $946 |
| Lowest | New | Superior | Tile | $79 | $946 |
| Highest | Old | Frame | Shake-Treated | $169 | $2,030 |
How Much Does the Provider You Choose Affect Home Insurance Costs?
Your insurer choice ranks third in affecting New Mexico rates, with prices ranging from 16% below to 16% above the state average.
| Lowest | State Farm | $125 | $1,501 |
| Highest | Foremost Insurance | $173 | $2,071 |
How Much Does Credit Affect Home Insurance Costs?
Higher credit scores lower your home insurance costs by making you appear less risky to insurers. Premiums vary by up to 65%, with annual rates ranging from $1,263 to $4,225.
| Lowest | Excellent | $105 | $1,263 |
| Highest | Poor | $352 | $4,225 |
How Much Does Claims History Affect Home Insurance Costs?
Filing more claims increases your perceived risk to insurers, raising your premiums. In New Mexico, claims history has less impact than other factors. MoneyGeek's analysis shows rates vary by up to 13% ($276 annually) based on claims history.
| Lowest | Claim free for 5+ years | $149 | $1,786 |
| Highest | 2 claims in past 5 years | $198 | $2,375 |
Tips to Save on New Mexico Home Insurance
New Mexico homeowners pay more each year for insurance. Use these six strategies to find the best and cheapest home insurance in New Mexico tailored to your needs.
- 1Calculate your coverage needs first
Know your coverage requirements before shopping. This keeps your search focused and prevents agents from overselling you unnecessary coverage. Beyond standard dwelling and liability protection, evaluate whether you need riders for high-value items like jewelry or art.
- 2Know average costs and available discounts
Research average costs for your home's age, location and coverage. Ask about all available discounts upfront, as some insurers only apply them upon request.
- 3Compare quotes from multiple sources
Get identical coverage quotes from at least three insurers. Use online comparison sites, independent brokers, company websites and local agents; rates vary by 30% or more depending on where you shop.
- 4Bundle your insurance policies
Combine your home and auto insurance to save 15% to 25% on both policies. Most New Mexico insurers offer multi-policy discounts automatically when you bundle.
- 5Lower your risk profile
Add storm shutters, install a security system or upgrade your roof to reduce premiums. Your credit score also affects rates, improving from fair (580 to 669) to good (670 to 739) credit saves 28% on average."
- 6Check eligibility for state programs
If standard insurers deny you coverage, the New Mexico FAIR Plan provides basic property insurance. Coverage limits are lower than traditional policies but satisfy mortgage lender requirements.
New Mexico Home Insurance Calculator: Bottom Line
Home insurance costs vary, mainly by coverage choice and home details. Find affordable rates by identifying your needs and options, then use our tool to compare.
Homeowners Calculator Insurance New Mexico: FAQ
Homeowners insurance costs in New Mexico depend on several factors. To help you estimate expenses, MoneyGeek answers common questions about home insurance in the state.
How much does homeowners insurance cost in New Mexico?
New Mexico's average monthly home insurance cost is $149 for dwelling coverage of $250,000. However, your rate will depend on factors like your credit score, liability and property coverage limits, and deductible.
How do I know how much dwelling coverage to get?
Homeowners can estimate their required dwelling coverage by calculating the cost to replace their home after damage, often with help from an appraiser. While this study uses a baseline coverage of $250,000, you can use the MoneyGeek homeowners insurance calculator to find the best coverage limit for your needs.
What factors affect home insurance costs the most?
The biggest factors affecting home insurance costs are your chosen coverage level and provider. Your credit score and home details also influence your rates.
How We Determined Our New Mexico Home Insurance Estimates
When determining the average cost of home insurance in New Mexico, we used a base profile for a simple estimate consistent with the following:
- $250,000 dwelling coverage
- $125,000 personal property coverage
- $200,000 liability coverage
- Home Built Year: 2000
- Construction type: Frame
- Roof type: Composition
- $1,000 deductible
- No claims in the past 5+ years
- Fire protection level of 3
However, rates will vary widely depending on factors such as coverage level, provider chosen, the age of the home, other features of the home, insured credit and claims history, among other factors. All other combinations presented in this article assume the home was built in 2000.
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.