Best homeowners insurance in New Mexico for 2025

What does home insurance cover in New Mexico?

The typical home insurance policy is an policy covers the dwelling and other structures on an open peril basis, meaning anything that isn't explicitly listed under policy exclusions is covered.

Keep in mind that personal property is different. It is usually covered on a named perils basis, meaning only losses from the perils listed in the policy are covered. Below are common causes of loss in New Mexico typically covered by a standard policy.

• Fire and lighting: Whether caused by a lightning strike, wildfire or a cooking mishap, fire is a covered peril on most home insurance policies. For homeowners living in high-risk wildfire areas, make sure your policy does not have a wildfire exclusion. If it does, ask your insurance agent about a standalone wildfire policy.
• Windstorms and hail: High winds, tornadoes and hailstorms are common in New Mexico but typically covered by an HO-3 policy. Some providers require homeowners to have a separate wind deductible, which is based on a percentage of the dwelling coverage. As the risk from high winds increases, standalone windstorm insurance policies may be another option for homeowners.

Additional home insurance coverage types in New Mexico

The coverage types offered in a standard home insurance policy typically include dwelling, personal property, liability, medical payments and loss of use coverage. New Mexico homeowners may also want to consider the following endorsements:

• Flood insurance: Because standard home insurance policies do not include flood coverage, you may want to purchase a standalone National Flood Insurance Program (NFIP) or through a private insurance company. Some companies offer flood insurance as an endorsement, but this is rare.
• Sump pump coverage: Sump pump coverage pays to repair clogged sump pumps and pipes. It will also pay for accidental water damage caused by backups. Sump pump and water backup coverage is not typically included in a home policy, but many insurance carriers offer it as an optional endorsement.
• Yard and garden coverage: Yard and garden coverage will help pay to re-landscape your yard if your garden, trees, shrubs or lawn get damaged by a covered peril, including fires. Standard homeowners policies include coverage at 5 percent of the dwelling amount (not to exceed $500 per tree, bush or shrub), so consumers with extensive landscaping may choose to purchase additional coverage on their policy.