Your Guide to Protecting Your New Mexico Dwelling

Homeowners insurance provides peace of mind to individuals and families across the nation. Depending on where you live, it's vitally important to consider factors such as flood or earthquakes, or special riders to cover specific valuables. Your state's climate, geography and property values could affect what you pay each year. According to the Insurance Information Institute, the average premium in New Mexico is $668. The Land of Enchantment ranks 16th in the nation for homeowners and renters insurance rates.

Moneysaving Strategies to Consider

Those who are seeking a policy in New Mexico should understand the state's regulations. When reviewing a policy, remember to look over both parts: Contents coverage relates to personal items and the contents of your house; dwelling coverage relates to the actual structure and, possibly, unattached buildings such as a detached garage. In general, your policy will cover property damage, personal belongings/home contents, personal liability and reimbursement for living expenses if your house is uninhabitable. Natural disasters such as floods or earthquakes are not covered under standard policies; if you are concerned about these issues, you will need to investigate them independently. Remember to carefully review your policy and ask questions before agreeing to it.

In New Mexico, all homeowners who have a functional electronic burglar alarm are eligible for a 10 percent discount in their premiums. State law also prescribes a 5 percent discount for those residents who have wrought iron bars on their doors and windows.

Consumer tips

Remember that your plan is there to protect you in the event of a catastrophe or emergency - so it's important to make sure you have enough coverage to keep you comfortable. Be sure to consider these factors as you review your prospective policies:

• Get competitive quotes: You can feel confident that you're receiving the best coverage for the money if you receive several competitive quotes from multiple carriers. Review the premiums, deductibles and coverage limits of each policy. Be sure to ask questions before deciding on which policy is best.
• Combine policies: If rising premiums are a concern, you may want to consider combining your home and auto policies. Many carriers offer multi-policy discounts to customers who combine auto, home and/or life insurance policies. Be sure to ask your insurer if this is a possibility.
• Raise your deductible: If saving money on your annual premiums is your top priority, you could consider raising your deductible. By doing this, you will pay less in premiums. Remember that you will be responsible for more out-of-pocket-expenses, however, in the event that you file a claim.
• Think about your credit: Did you know that your credit score can affect your rates? It's true. Consumers with high credit scores are considered more responsible overall, and benefit from lower-on-average premiums. Keep this in mind as you pay your bills each month and apply for loans. If you improve your credit, you can save money in many ways.