Last Updated on September 29, 2020 by Andrew Lee
The State of New Mexico offers a lot to both its residents and visitors. Numerous ranking lists consider many of its cities as some of the “Best Places to Retire,” “Top Small Towns,” “Best Golf Cities,” Best Pet Cities,” and Best Foodie Cities.” These are just some of the other reasons many people – ranging from individuals to families to business owners – consider the state as their home, and why you most likely want to become part of this group too.
One thing to keep in mind as a soon-to-become homeowner in this beautiful state is homeowners insurance. In this guide based on the FAQs page provided by the New Mexico Office of Superintendent of Insurance, you’ll learn the basic entitlements you’ll receive with this type of insurance.
When you file a claim for repair or replacement, the first reimbursement you’ll receive is called the “hold-back amount.” Insurance companies calculate this by deducting the actual cash value from the total cost of repair or replacement.
Once you can provide the receipt for the completed repairs or replacement, your insurer will reimburse you for your losses. The overall amount will depend on whether your policy indicates actual cash value (ACV) or replacement cost value (RCV).
Homeowners paid an average of $898 every year for the premiums
Liability coverage for damages to others’ properties
Your New Mexico homeowners insurance policy also consists of liability coverage. This entitles you to a limited coverage in the event that other people’s property sustains damages that you caused. Most insurers provide a coverage limit ranging from $500 to $1,000.
Key Facts and Market Trends in New Mexico: ValuePenguin puts the monthly homeowners insurance premiums average in New Mexico at $68.06. You should also know that in average, the state’s policyholders pay $898 every year towards their premiums. And while this is lower than the countrywide average of $1,096, as reported by the National Association of Insurance Commissioners (NAIC), it doesn’t mean that NM consumers don’t have the need for it.
Law-required or automatically applied discounts
One of the best things about the insurance laws in New Mexico is that they require insurance companies to automatically provide specific discounts. For instance, you have installed an electronic burglar alarm in your home. This will entitle you to a 10% discount on your insurance premiums. You will get another 5% discount when you have wrought iron bars placed on all of your home’s windows and doors.
Other money-saving deals
Because competition is tight within the state’s insurance market, insurers strive hard to capture the attention and maintain the interest of potential and existing customers. One of the most common strategies they implement is the provision of deals that deliver premiums-reducing opportunities to their clients.
A popular money-saving deal offered by insurance companies in NM is when policyholders install other types of home safety/security devices or systems, such as smoke alarms, closed-circuit television (CCTV), and fire alarms. They may also lower your premiums when you choose to get different types of insurance services from the same company. This is often called the “Multiple Policy Discount.”
The bottom line
As long as you do your homework and fulfil your part as a responsible consumer, you can increase your chances of securing a New Mexico homeowners insurance policy that best suits your needs and requirements without breaking your wallet.