New Mexico Home
Even if you’re lucky enough to own a home in New Mexico, the
Land of Enchantment, you still need to have a home insurance policy. But
there’s no reason to pay too much for New Mexico home
insurance. After all, don’t you have lots of other places to
spend your hard earned money? That’s where
Insurance-Rates-Online.com can help – we’ll teach you the
things you need to know to shop for the best deals on home
insurance in New Mexico.
Basics of New Mexico Home Insurance
While there’s no law forcing you to buy home insurance, if
your home has a mortgage, your lender probably requires you to
purchase a policy. Home insurance is always a good idea because
it pays for the repairs to restore your home if something
New Mexico home
insurance policies usually cover four basic
- Dwelling coverage – repairs or
replaces your home if it’s damaged by a covered
- Personal property coverage –
covers the personal property you own, whether damaged in
your home or off your property.
- Additional living expenses – If
you can’t live in your home because of damage caused by a
covered incident, this provides funds to help cover those
- Personal liability – pays the
medical or repair bills if you or a family member causes a
physical injury or property damage to someone else, or if
someone is injured on your property.
Usually most home insurance policies cover specific things
like fire, theft, wind or hail damage, vandalism, etc. Home
insurance does not cover damage caused by neglect or normal
wear and tear. It also doesn’t cover damage from flooding, earthquakes or nuclear
accidents, but you can buy separate additional coverage to
cover these situations.
of New Mexico Home Insurance Policies
There are three different types of home insurance policies
available in New Mexico. Each provides a different level of
replacement coverage; greater amounts of coverage provide a
lower risk to you, but also mean a higher premium cost.
The three types of
- Actual Cash Value which deducts depreciation before
paying replacement or repair costs. It’s the least
expensive form of home insurance, but remember that you’ll
have to pay the difference between the replacement cost and
the depreciated value.
- Replacement Coverage pays for repair or replacement
costs up to the limit of the policy. Depreciation doesn’t
matter with replacement coverage.
- Guaranteed Replacement Coverage ensures full repair or
replacement of your home, whatever the cost. The insurance
company will automatically increase coverage and premiums
to keep the policy value high enough to pay whatever the
repair costs could be, including meeting any new building
codes. It’s the most expensive type of coverage, but it
ensures that your house will be completely restored if
anything ever happens.
Personal Property Coverage
Normally insurance companies in New Mexico have a formula to
determine the value of your personal property. Usually it’s 50%
of the value of the policy. This covers most things you own,
but if you have special items, like antiques, coin collections,
or expensive computers or cameras, the policy limits may not be
enough. In this case, you should purchase a special policy
endorsement to provide the extra coverage you need.
Affecting New Mexico Home Insurance Rates
use a variety of factors to determine home insurance premiums,
- Home Construction – Frame homes
cost more to insure than brick, because they are more
susceptible to damage in most instances, like fires.
- Age of Home – New homes are less
expensive to insure since all the plumbing, heating, wiring
and appliances are brand new and up to the latest building
- Fire Protection – Each fire
protection district is actually rated, so if your local
fire department has a high rating, your insurance will cost
less. If there’s a fire hydrant near your home that can
lower the rates too.
- Security Discounts – Adding an
electronic burglar alarm will reduce your rates by 10%, and
wrought iron bars on doors and windows should give a 5%
discount. There’s also a discount for smoke alarms and fire
- Non-Smokers Discount –
Statistically non-smokers have fewer claims than smokers
do, so their rates are lower. Just one more reason not to
- Senior Discount – Since seniors
are usually home more than folks working full time, they
can prevent burglaries and limit damage from things like
Money on Home insurance in New Mexico
There are many ways to
save on home insurance policies, like:
- Deductible Amounts – Most
policies come with a $250 deductible; raising this to $500
or even $1000 can make a huge difference in your premiums,
but make sure you can afford the extra amount.
- Multi-policy Discounts –
Combining home insurance and car insurance with the same
company results in a lower premium.
- Shop Around – Rates are also
based on each insurance company’s experience in the area.
Since each company’s experiences are different, so are
their rates. That’s why it is important to get several
quotes and compare prices!
For some more great ways to save money on home insurance
in New Mexico, visit Saving Money on Home
Information on New Mexico Home Insurance
If you’re having problems obtaining home insurance, contact
the New Mexico Department of Insurance, PO Box
1269, Santa Fe, NM 87504-1269 or call 800-947-4722.
Shop for New Mexico Home Insurance
Now that you know the important stuff about how to buy a New
Mexico home insurance policy, it’s time to start getting
quotes. Thanks to the internet, it’s much easier to get those
quotes. Begin by entering your zip code in the box below, then
click enter. You’ll be instantly matched with some of the best
insurance companies offering insurance in your area. Click
three or four and request a free quote. Before you know it,
you’ll have the coverage you need at a price you like.
Don’t wait a minute longer – enter your zip code and
start saving now!