New Mexico Homeowners Insurance Guide

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 earthquake insurance, or special riders to cover specific valuables. Your state's climate, geography and property values could affect the homeowners insurance premiums you pay each year. According to the Insurance Information Institute, the average homeowners insurance premium in New Mexico is $668. The Land of Enchantment ranks 16th in the nation for homeowners and renters insurance rates.

Homeowners insurance in New Mexico

Homeowners who are seeking insurance in New Mexico should understand the state's homeowners insurance 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 home structure and, possibly, unattached buildings such as a detached garage. In general, your homeowners insurance policy will cover property damage, personal belongings/home contents, personal liability and reimbursement for living expenses if your home 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 homeowners insurance premiums. State law also prescribes a 5 percent discount for those homeowners who have wrought iron bars on their homes' doors and windows.

Consumer tips

Remember that your home insurance 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 insurance companies. 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 insurance policies. Many insurance companies 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 homeowners insurance 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 insurance rates? It's true. Consumers with high credit scores are considered more responsible overall, and benefit from lower-on-average insurance 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.