New Mexico Home Insurance

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.

The 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 unfortunate happens.

New Mexico home insurance policies usually cover four basic areas:

1. Dwelling coverage – repairs or replaces your home if it’s damaged by a covered incidence
2. Personal property coverage – covers the personal property you own, whether damaged in your home or off your property.
3. 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 expenses.
4. 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.

Types 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 coverage are:

1. 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.
2. Replacement Coverage pays for repair or replacement costs up to the limit of the policy. Depreciation doesn’t matter with replacement coverage.
3. 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.

Factors Affecting New Mexico Home Insurance Rates

Insurance companies use a variety of factors to determine home insurance premiums, including:

• 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 codes.
• 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 extinguishers.
• Non-Smokers Discount – Statistically non-smokers have fewer claims than smokers do, so their rates are lower. Just one more reason not to smoke!
• Senior Discount – Since seniors are usually home more than folks working full time, they can prevent burglaries and limit damage from things like fires.

Saving 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 Insurance.

More 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.

Time to 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!