New Mexico Renters Insurance

New Mexico renters insurance will include coverage for your personal property, loss of use, personal liability, and medical payments.
Written by Rebecca Gallace
Reviewed by Melanie Reiff
Updated on May 13, 2022
The median cost of New Mexico renters insurance is about $7 a month, or $94 annually. This rate will include coverage for your personal property, loss of use, personal liability, and medical payments in case someone is injured in your home or apartment.
When you get the keys to your newly leased apartment or house, filling out more paperwork to get insurance is probably the last thing on your mind. However,
renters insurance
is a smart financial move and it’s affordable to purchase.
Renters insurance protects the financial and legal security of your home from accidents or unexpected events. Here’s Jerry’s guide to what you need to know about renters insurance in New Mexico.
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What is renters insurance?

Renters insurance protects your personal property in a rented apartment, condo, or home from unexpected circumstances such as theft, fire, and burst pipes. Renters insurance covers the cost of lost or damaged possessions and protects you from liability should someone get injured while in your living space.
A renters insurance policy in New Mexico typically includes the following coverages: 
  • Personal property (Coverage C): This coverage pays for the value of your personal property if it is damaged, destroyed, or stolen. 
  • Loss of use (Coverage D): This pays for additional living expenses and is called loss of use, or ALE coverage. It covers the cost of housing, food, and other essential expenses if your home becomes uninhabitable and you must temporarily relocate.
  • Personal liability (Coverage E): If you are found legally responsible for someone else’s injury or property damage, this insurance can help pay for your defense in court and any obligatory payouts.
  • Medical payments to others (Coverage F):  If a guest is injured on your property, this insurance can help cover their medical bills.
To calculate how much property coverage you will need, start by taking inventory of all belongings such as furniture, electronics, clothing, and art. If you can, document:
  • Value of items
  • Number of items
  • Descriptions of items (in good condition, damaged, etc.)
  • Serial numbers of appliances
In addition to written documentation, it is important to take photos of your belongings. Having visual evidence of your items will help you get a fair payout and save you time if you have to file a future claim.

What does renters insurance cover?

Your renters insurance will only cover what is explicitly listed in your policy. While policies vary between property owners and physical location, you can expect to find a list of named perils, or the situations insurance will cover, in your policy documents. 
Here are some common named perils: 
  • Fire and lightning
  • Explosions
  • Smoke damage
  • Theft
  • Vandalism
  • Water backup damage
  • Bodily injuries on property
  • Frozen pipes
As not all disasters are covered by renters insurance, be sure to check if separate insurance plans are necessary for the severe thunderstorms, high winds, large hail, and heavy rains New Mexico faces annually. 

What does renters insurance not cover?

Renters insurance policies are not comprehensive. In most cases, the following situations and things will not be covered:
  • Disasters such as earthquakes or floods. Natural disasters of this magnitude are often not covered in your regular renters or home insurance plans. You can purchase
    separate coverage
    to protect yourself against these threats. 
  • Valuables. Collectibles or valuables such as jewelry may also need additional insurance. Basic renters policies will sometimes cover a smaller amount of damage to jewelry than to other items. 
  • Business or work-related items. If you run a business out of your home or apartment, special equipment, like computers, printers, or crafting materials, may not be covered. 
  • Roommate(s) belongings. Your renters insurance generally will not cover roommates’ belongings. The exception would be if you are living with a sibling or relative and they are listed on your policy.
  • Vehicle coverage. Even if your vehicle is securely parked on your rented property,
    car damage or theft
    is not covered under renters insurance. 

Is renters insurance required in New Mexico?

Renters insurance is not mandated by New Mexico state law. However, most landlords and property managers in the state will require you to purchase a plan before you sign a lease. 
Even if your landlord doesn’t require you to purchase a renters insurance plan, it’s still a great idea to have one. Renters insurance is one of the most inexpensive types of insurance, and it really pays off in case the unimaginable happens to your apartment. 
In New Mexico, the average annual cost of renters insurance is $94, which is $65 below the national average. 
You’ll be paying just about $7 a month to safeguard your belongings against damage or theft and to protect your legal liability should a person entering your property become injured.
Key Takeaway Even if you aren’t required to have renters insurance, it’s still a great idea to purchase a policy to safeguard you and your belongings. 

How to build a New Mexico renters insurance policy

You’ll need to complete a few steps to make sure you find the right renters insurance for you.
  • Inventory your belongings. Before purchasing an insurance plan, you will need to take inventory of your belongings. Take video and pictures of your items to make things easier if you ever need to file a claim.
  • Find an insurance company and policy. Once you have an understanding of the value of your belongings, you will need to find a policy that gives you both your desired coverage and low rates. Shop around with multiple providers for the best results. 
  • Choose a personal liability limit. Many landlords require a certain amount of liability coverage (usually $300,000 to $500,000), but you may be able to choose a smaller amount, like $100,000.
  • Ensure you don’t need additional coverage.

Actual cash value vs. replacement cost

When you choose your policy, you’ll need to decide between two basic types of cost replacement: ACV coverage and replacement cost coverage. 
ACV coverage will reimburse you for the current value of your property at the time of damage or loss.
Replacement cost coverage, on the other hand, will entitle you to the amount you need to pay for a new item with no deduction for depreciation.
In the case that you choose replacement cost coverage, know that this option is usually more expensive
Key Takeaway Actual cash value pays what the property was worth at the time of damage, while replacement cost pays the full cost to replace the items.

How to find cheap renters and car insurance

Finding affordable
renters insurance
doesn’t take much work, but why do more work than you need to?
makes finding and comparing quotes from the top name-brand providers easier than ever. 
Jerry can even help you bundle your renters and auto insurance for a potential 5-25% discount on both.
If you ever have questions during your insurance shopping process, Jerry’s team of friendly and knowledgeable agents are only a text or call away. 
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