Regardless of whether you are renting out a traditional family home in Rio Rancho, a luxury apartment in Albuquerque or a studio flat on a short-term lease to a visiting professor on the New Mexico State University campus in Las Cruces, landlord insurance is necessary. It will shield you from the potential hazards you may face as a landlord so that your rental properties can continue to be profitable. If you want to be sure that you are getting your coverage at a reasonable rate, you will need to compare a variety of landlord insurance quotes in New Mexico.
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Median Gross Rent in New Mexico’s Largest Cities
- Albuquerque: $734
- Las Cruces: $675
- Rio Rancho: $919
- Santa Fe: $905
- Roswell: $591
- Farmington: $729
Whether the rent you charge is great or small, a proper landlord insurance policy will protect you from missing out on that rental income on which you have come to rely.
Why Lessors in New Mexico Need Landlord Insurance
If you are new to the landlord business, you may be surprised to learn that traditional homeowners insurance policies will not provide coverage for damages to your property if it is discovered that the residence had been occupied by tenants at the time the damage occurred. If you want to be compensated for loss, damage or liability expenses, you will need a landlord insurance policy to cover your New Mexico rental property.
Your tenants will need to purchase coverage for their own personal belonging through a renters insurance policy. You, however, are responsible for covering damages to the building, your own personal property that is kept inside and any liability expenses that may arise. Be aware that although you will have much less in contents coverage, premiums for landlord insurance policies typically run about 25 percent higher than traditional homeowners policies. This is because there are more inherent risks involved when you have tenants occupying your New Mexico rental property.
What Landlords in New Mexico Are Charging for Rent
- Less than $200: a total of 13,066 renters, making up 6.5%
- $200 to $299: a total of 13,901 renters, making up 6.9%
- $300 to $499: a total of 62,912 renters, making up 31.3%
- $500 to $749: a total of 58,152 renters, making up 28.9%
- $750 to $999: a total of 21,749 renters, making up 10.8%
- $1,000 to $1,499: a total of 9.165 renters, making up 4.6%
- $1,500 or more: a total of 2,505 renters, making up 1.2%
- No cash rent: a total of 19,458 renters, making up 9.7%
- The median cost to rent a home in New Mexico: $503
New Mexico Landlord Insurance Covers Liability Expenses
One of the most important coverage features of your landlord insurance policy is liability insurance. This will also protect you if a tenant or a tenant’s guest is injured or suffers property damage while on your property and it can be shown that the accident resulted because of negligence in upkeep on your part. Some examples of things you might find yourself held liable for include medical expenses if there is a carbon monoxide or gas leak in the home or if faulty wiring or hazardous workmanship leads to a residential fire. If the rental home becomes uninhabitable, you may also have to pay for your tenant’s temporary lodging, though this may be covered by their renters insurance.
It is a good idea to require your tenants to have renters insurance as a term of their lease. The reason is, if they do not have coverage and cause damages to the home, they may attempt to sue you for liability in an attempt to recoup their losses. It can be difficult to determine who is in the wrong in tenant/landlord disputes, and the courts tend to side with the tenant. Fortunately, liability insurance will cover your court costs and legal fees as well.
Recent New Mexico Burglary Statistics
- More than 21,300 burglaries occur in this state
- This national rate is 6.70 per every 1,000 residences
- The burglary rate in New Mexico is 10.25 per every 1,000 residences
- The NM city with the highest burglary rate is Santa Fe at 27.74 per every 1,000 residences
A comprehensive landlord insurance policy will protect you from paying for damages caused to your rental structure as a result of burglary or vandalism.
Landlord Insurance Covers Property Loss and Damage in NM
In any renter-occupied home, a reasonable amount of wear-and-tear is to be expected. Unfortunately, tenants sometimes cause or allow very expensive damage. This can happen if they are careless with candles, allow the bathtub to overflow or fail to report a termite infestation to you. New Mexico's severe weather events, particularly those that bring heavy winds or hail, can also lead to damages both to the structure of the home and, in extreme cases, to your property like rugs and light fixtures, that are kept within.
Finally, burglaries and other property crimes, such as arson and vandalism, may result in property loss or damage. You are not responsible for compensating your tenants for personal belongings lost in a burglary, but a break-in can also result in damage to your property such as a broken door or window. Your landlord insurance policy will compensate you for damages for losses caused by property crimes.
How to Find Quotes and Get Coverage
Comparing landlord insurance quotes on your rental property is necessary if you want to be sure that you are getting a comprehensive policy at a reasonable rate. Whether you request information online or by telephone, however, comparison shopping can be time-consuming and, at times, frustrating. Working with an independent agent in our network can streamline this process. These agents work with several highly-rated insurance companies to easily provide you with an assortment of policies from which to choose.
Contact an agent in your neighborhood to learn more about landlord insurance.