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What You Need to Know About Home Insurance in New Mexico

If you're a homeowner in New Mexico, you know that having the right home insurance policy is essential. Not only does it protect your investment, but it also gives you peace of mind in knowing that you and your family are protected in the event of an accident or disaster.

Home prices in New Mexico have been on the rise in recent years (with a median increase of $248,670), so it's more important than ever to make sure you have adequate coverage. Here's what you need to know about home insurance in New Mexico and how to find the right policy for your needs.

Types of Home Insurance Policies in New Mexico

The first type of home insurance policy is called "dwelling coverage." This type of coverage protects your home from damage caused by fire, wind, hail, or other disasters. It also covers your personal belongings in the event that they are damaged or destroyed in a covered event.

The second type of home insurance policy is called "contents coverage." This policy protects your personal belongings from damage or destruction caused by theft, vandalism, or natural disasters. Contents coverage also pays for replacement costs if your belongings are lost or stolen.

Liability coverage protects you from lawsuits filed against you if someone is injured on your property. It also pays for damage to another person's property that results from your negligence.

Comprehensive home coverage includes all three types of coverage, while "named perils" policies only cover specific types of disasters. For example, a windstorm policy would only cover damage caused by a windstorm, and not damage caused by a fire or theft.

Some new home insurance policies also offer "add-on" coverage for things like identity theft protection, flood insurance, and earthquake insurance. Be sure to ask your agent about these options to see if they're right for you.

How Much Does Home Insurance Cost in New Mexico?

The cost of home insurance in New Mexico varies depending on a number of factors, including the value of your home, the amount of coverage you need, and the deductible you select. However, the average cost of home insurance in New Mexico is $2,024 per year for a dwelling worth $250,000.

Things That Can Raise Your New Mexico Home Insurance Rates

There are a few things that can cause your home insurance rates to go up in New Mexico.

Filing a Claim: Insurance companies work with the understanding that most policyholders only file a claim when they absolutely need to. As such, if you do have to file a claim, your rates will likely go up. How much they go up will depend on the insurer, but it's not uncommon for rates to increase by 10-40%.

Having Poor Credit: Your credit score is one of the factors that insurers use to determine your rates. If you have poor credit, you're likely to pay more for home insurance than someone with good credit.

Living in a High-Risk Area: Homeowners in high-risk areas, such as flood zones or areas prone to wildfires, will pay more for home insurance than those who live in low-risk areas.

Building Additions and Renovations: If you make any additions or renovations to your homes, such as a new pool or an addition to your home, your rates will likely go up.

Adding Certain Dog Breeds: Some insurers will charge higher rates if you own certain dog breeds, such as pit bulls or Rottweilers.

Having a Trampoline: Many insurers will charge higher rates if you have a trampoline on your property, as they are considered to be high-risk.

Having a Swimming Pool: Homeowners with swimming pools will pay more for home insurance than those without. This is because pools are considered to be high-risk.

Having a Wood-Burning Fireplace: Homeowners with wood-burning fireplaces will pay more for home insurance than those without. This is because they are considered to be high-risk.

Having a Home-Based Business: Your rates will likely go up if you have a home-based business. This is because your home insurance policy will need to cover your business equipment and inventory.

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How to Get the Best Home Insurance Rates in New Mexico

There are a few things you can do to get the best home insurance rates in New Mexico.

Shop Around

Many players in the industry mean competitive prices. You should compare rates from at least three different insurers to be sure you're getting the best deal. The easiest and surest way to go about comparing New Mexico home insurance rates is by working with an independent insurance agent. Unlike a captive agent, who can only sell you policies from one company, an independent agent can shop around on your behalf and help you find the best rates possible.

Improve Your Home's Safety and Security

One of the best ways to get lower home insurance rates is by taking steps to make your home more safe and secure. Installing a home security system, deadbolt locks, and smoke detectors can all help to lower your rates.

Raise Your Deductible

Raising your deductible is another great way to lower your home insurance rates. A higher deductible means you'll have to pay more out of pocket if you need to file a claim, but it also means your monthly premiums will be lower.

Bundle Your Policies

Bundling your home and auto insurance policies is another great way to save money. Many insurers offer discounts of up to 20% when you bundle multiple policies together.

Pay Your Premiums in Full

Paying your premiums in full is another great way to save money on home insurance. Many insurers offer discounts of up to 5% for policyholders who pay their premiums in full.

These are just a few of the ways you can lower your home insurance rates in New Mexico. For more tips, be sure to speak with an independent insurance agent.

Have Questions? Compare New Mexico Home Insurance Quotes Today

When it comes to finding the best home insurance rates in New Mexico, the most important thing you can do is compare quotes. An independent insurance agent can help you compare quotes from multiple insurers and find the best policy for your needs. Contact an agent today to get started.

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