Whether your home is a Southwest contemporary or a traditional ranch, you can help protect it and your assets with New Mexico home insurance.

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Is homeowners insurance required in New Mexico?

New Mexico state law does not require homeowners insurance. If you have a mortgage, however, the lender is likely to require it to protect its investment. And, homeowners with home insurance in New Mexico can benefit from knowing that they will have coverage for damage from severe storms, which can bring heavy rain, lightning, hail, strong winds and even snow in some parts of the state. Homeowners insurance can also help you protect your assets in case you’re sued.

What does homeowners insurance typically cover in New Mexico?

Whether you live in busy Albuquerque or Santa Fe or own a home in quiet Tucumcari or Roswell, homeowners insurance typically offers four main types of coverage.

  • Dwelling coverage covers the physical structure of your home (inside or out) if damaged by a covered loss such as a kitchen fire or a hailstorm. Dwelling coverage helps pay to repair or rebuild your property.  
  • Personal property coverage. If your furniture, clothing, electronics or other belongings are damaged or stolen, your homeowners insurance policy can help you repair or replace them, either at their replacement cost or their actual cash value. Theft is generally covered as well, even if the items aren’t in your home when they’re stolen.
  • Liability coverage helps you protect your assets if you are liable for someone else’s injury or property damage, such as if a visitor trips on your front steps and falls, or your tree falls on your neighbor’s fence. Medical and legal costs are typically included with this coverage.
  • Additional living expenses. If you can’t occupy your home because of damage caused by a covered loss, the increased costs associated with living elsewhere, such as hotel, food and pet boarding expenses, are covered.

Typical homeowners insurance policies in New Mexico cover damage caused by:

  • Windstorms
  • Hail
  • Lightning 
  • Fire
  • Vandalism and theft
  • Explosions
  • Falling objects
  • The weight of snow or ice

What is not covered by homeowners insurance in New Mexico?

Flash floods after thunderstorms or during monsoon rains are a common desert-state hazard, but flooding is typically not covered by any homeowners insurance policy in New Mexico. Separate flood insurance is available through the National Flood Insurance Program partnership with Farmers®. A Farmers agent can walk you through the options.

Special home features, including swimming pools and expensive items such as jewelry and art, typically require additional insurance. Ask your Farmers agent about these limitations and exclusions and how to add items that require higher coverage limits separately to your policy.

How much is homeowners insurance in New Mexico?

The cost of New Mexico home insurance varies depending on the value of your home, the level of coverage you want and the risks brought by extreme weather in different regions.

Other things that might affect the cost of your homeowners insurance policy include:

  • Your property location
  • Your home’s condition and age, including the age of the roof
  • Construction and material costs in your area

New Mexico home insurance discounts

Farmers builds value into every home policy with:

  • Declining Deductibles® — Earn $50 toward your deductible each year.
  • Claim Free Discount® — Receive a discount if you’ve been claim-free for three years.
  • Claim Forgiveness — Your premium won’t increase due to a claim if you’ve been claim-free with Farmers for five years.
  • Cosmetic Damage Coverage — File a claim for functional damage, and we’ll cover related cosmetic damage as well.

We offer a variety of discounts for our home insurance customers in New Mexico. For example:

Protective devices

See a list of potential home insurance discounts. Not all listed discounts are available in New Mexico.

View more coverage options in New Mexico


Auto insurance

Find out minimum state requirements for auto insurance in New Mexico, available discounts and more.

View car insurance details and discounts for New Mexico

Learn more about homeowners insurance

Find out how much home insurance costs, coverage requirements and more.

Read more about coverage and discounts

Learn From Experience

Read more about home maintenance, home safety and insurance questions to help you plan and prepare to protect what matters most.

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What Does an Umbrella Insurance Policy Cover?

Think of umbrella insurance as an extra layer of liability coverage on top of your existing home and auto insurance — a personal umbrella over you and your assets. It’s additional coverage over your existing insurance limits, and it can be an affordable way to help you protect your home, cars, boats and other possessions if you’re sued.

When Would a Homeowner Want to Consider Vacant Home Insurance?

If you move out of a home before it’s sold, inherit a property or are a landlord between tenants, you may have a vacant property.