Looking for the best home warranty in New Mexico?
Perfect, you’re in the right spot. In this guide, you’ll learn:
- Should you have a home warranty in New Mexico?
- What are some hidden ways to save money when buying a home warranty?
- How much does a home warranty cost you and what’s covered in NM?
- Is coverage worth it for you in New Mexico?
- And much more!
After 100+ tests and 68+ companies reviewed, we’ve listed our top 7 home warranty picks for New Mexico below. Continue reading!
Disclosure: ReviewHomeWarranties.com has referral agreements with some of the home warranty companies presented on our lists throughout this website, including our the above rankings. Referral income which we generate through these agreements helps us keep the content free of ads and accessible.
While New Mexico is a rather young state in the timeline of U.S. history, it is the 5th largest state in the nation with plenty of opportunities and space for residential areas. If you live in New Mexico, you know that many small-towns and cities are characterized by the wild, wild, west, and cowboy legacy. Some residents even consider their cowboy boots and cowboy hats as business attire, including a few local home contractors.
While New Mexico’s cowboy culture is nothing short of a good time, the reality is that home repairs and replacements on essential items are not. And no cowboy or cowgirl needs to be left with expensive out of pocket costs or financial woes over home items.
Owning a home warranty plan means that the company of your choice will cover a specified package of appliances, systems, or both. So do you want to find the right company in Albuquerque, Santa Fe, Roswell or Las Cruces?
Top 7 Best Home Warranty Companies in New Mexico
Who Needs A Home Warranty in New Mexico?
New Mexico is home to stunning sights, sweeping plains and colorful sunsets. Not only is it a unique place to live, but perfect for people that enjoy endless outdoor activities. No
matter if you are planning to move to New Mexico, wanting to retire or looking to own a vacation ranch, you should be protected from unexpected home expenses.
Here’s the bottom line: owning coverage from a top home warranty company will fetch you great returns as a homebuyer, homeowner or home seller in New Mexico.
Best Home Warranty in New Mexico?
Choice Home Warranty is our top pick for New Mexico. Why? Choice covers homes up to 5,000 ft, free contract transfers, reasonable annual premiums and they won't deny you coverage if you own an older property.
The homeownership rate in New Mexico is 2% above the national average of 63.9% and growing. So, what do these numbers mean for you? Well, 66.2% percent of people should consider insurance for the wear and tear or malfunction of home items.
In New Mexico, experienced homeowners understand the need for a comprehensive home warranty plan. If you ask anyone that has owned a home for more than 10 years, they will tell you that they have experienced expensive repair costs and that it has really put a strain on their monthly budget, hence the need for upfront protection.
New Mexico is the perfect place to be on the market for a new home, whether you live on the outskirts of Santa Fe or in the Rio Grande River area. And lucky for you, New Mexico is not limited to a specific type of buyer. If you prefer to live in the city or a quiet ranch, there is something for you.
Similarly, if you are on the market for a new home in NM, you should simultaneously be on the market for home warranty coverage for your appliances and systems. A home warranty plan will cover your essential items, which is essential in the first year of owning a new home. There is nothing more frustrating than moving into your recreational paradise in Taos Ski Valley and dealing with a broken HVAC system or ductwork issues in the middle of your move-in.
Home Sellers/ Real Estate Agents
Lucky for independent home sellers or real estate agents in New Mexico, the housing market is booming. According to the AbuquerqueJournal, in 2019, a record-breaking total of 23,328 home sales closed.
And what is one thing that probably helped most of these houses close, you ask? Well, the answer is a home warranty plan offered either as an incentive to purchase or as a gift from the real estate agent. It is fairly common for real estate agents to give homebuyers the confidence that their home will be insured for their first year of residence through home warranty coverage.
As a home seller, coverage will also provide the confidence that a plumbing stoppage or septic tank issue will be covered while your home is on the market.
Top 5 Best Home Warranty Companies In New Mexico
|New Mexico Company Name||Premium Per Month||Deductible|
|Choice Home Warranty||From $36.17 to $43.85||$85 flat rate|
|American Home Shield||From $49.99 to $59.99||From $75-$125|
|Select Home Warranty||From $35.83 to $37.50||$75 flat rate|
|Total Home Protection||From $45.33 to $52||$75 flat rate|
|First American Home Warranty||From $28 to $42.50||From $75-$100|
For both agents and independent home sellers, a home warranty plan is attractive to the homebuyer that prefers move-in ready and furnished houses, with ample appliances ready for use. These New Mexico homebuyers appreciate the peace of mind of not having to deal with the maintenance of a fixer-upper, but also the minimal time and money that a move-in ready home with warranty coverage brings.
Lastly, as a real estate agent or independent seller, you understand the importance of the industry’s three favorite words: location, location, location. Property values in the more densely-populated areas of New Mexico--Albuquerque and Santa Fe-- are a bit higher than other parts of the state. For that reason, if you are trying to sell your home in these urban areas, including a home warranty protection in the terms could make-or-break a sale.
Check out this video below for more information on the real estate market in Albuquerque.
What Should You Think About When Purchasing A Home Warranty in New Mexico?
Before you purchase a home warranty in New Mexico, there are several factors to think about to find the right plan for your home. Consider the following, below.
New Mexico is located in the Southwest Region of the U.S., bordered by Colorado, Oklahoma and Texas in the east, Mexico, and Arizona. New Mexico’s northwest corner touches Arizona, Utah, and Colorado, creating the only place where the four states meet.
Your location matters when picking a home warranty company, as a few companies have state exclusions. Lucky for you, all top five companies in this review protect New Mexico. For example, Total Home Protection does not offer protection in the nearby states of California and Nevada.
Depending on if you live in the mountains of northern New Mexico’s or the mesas in the western part of the state, topography matters when it comes to a home warranty. For example, if you live in the Rio Grande valley, pool coverage might be an item to have insured, as the desert-like weather produces ample heat. However, if you live in the Sangre de Cristo Mountains, pool coverage might not be as-needed.
New Mexico residents tend to experience a few natural events, like flooding, wildfires, severe storms and tornadoes. However, remember that your home coverage plans do not protect from these natural disasters, which is why it is important to own both homeowners insurance and a home warranty plan.
Age of home
In New Mexico, it is important to consider the age of your home when purchasing a home warranty plan because most of your manufacturer’s warranties have expired, therefore you’d be out of pocket for repairs.
A manufacturer’s warranty binds the original provider to repair or potentially replace an item if it malfunctions. And while this coverage is nice for a year, coverage will run out and when it does you need to make sure you have back up.
So, unless you purchased a new-build, big-ticket items have probably already experienced normal wear and tear which makes a home warranty contract a no-brainer. There is nothing wrong with the charm and character of an older home, but owning a home warranty will fill the coverage gap for multiple older systems and appliances.
What Will A Home Warranty Cost A Resident Of New Mexico?
Almost every home warranty company requires a deductible and premium payment. A deductible is also known as a service call fee and can range anywhere from $60-150 per claim submitted.
The premium is the fee you pay per month or per year for your coverage plan, which usually varies between companies. 47% of home warranty companies in New Mexico offer yearly premiums between $600-$650.
To illustrate this a bit more, let's consider the cost of air conditioner system breakdown in the middle of a New Mexico summer. If you have purchased a plan from Choice Home Warranty, our number one provider, your A/C unit is covered under the Platinum Care Package. So, you would pay a yearly $600 premium, plus an $85 service call fee in exchange for repair or replacement.
Think about it, a $600 yearly premium is nothing compared to the costs of replacing an A/C unit. For just a few hundred dollars you’ll spend on a contract and service call fee, you are saving significantly more money than having to pay upwards of $5,000 for a new installation.
What Types Of Plans Are Available For You In New Mexico?
Lucky for you, as a resident of New Mexico, you are eligible for many different providers and coverage options when it comes to choosing the best home warranty company.
Appliance Coverage Plans
An appliance plan covers your basic home appliances, like your refrigerator, dishwasher and washing machine. Because no systems are included, many companies refer to this individual appliance plan as “basic coverage”, but each company brands this plan differently.
Under appliance coverage plans, generally around 6-10 items are included. For example, Select Home Warranty calls this plan the Bronze Care Plan and includes eight appliances. American Home Shield, on the other hand, calls this plan their “Appliances Plan” and covers 10 items.
Systems Coverage Plans
Similar to appliance plans, systems coverage plans protect your home systems like HVAC system, air conditioning systems, electrical system and more. Systems Coverage Plans are another example of what some companies refer to as “basic coverage” because home appliances are not included. American Home Shield offers their Systems Plan for the same price as their Appliance Plan, for $49.99 per month.
Combo Plans and Build Your Own Plans
Combo Plans and Build Your Own Plans allow customers to combine both systems and appliances into one plan, making the plan more advanced than individualized appliance or system coverage options.
Some companies refer to their combo plans as “total protection plans”, as more items are included. For example, American Home Shield offers both a combo and Build Your Own. The Combo Plan covers 21 items for $59.99 a month. Their Build Your Own Plan allows customers to tailor 10 items to their needs for $54.99 a month. While these plans are more expensive, homeowners that value flexibility and comprehensive coverage appreciate these more cutting-edge options.
Optional Coverage Options
Add-on items are perfect for the new homeowner that has unique items in their first home. Not everyone will need pool coverage, but it is nice to know that if you decide to have this backyard luxury, coverage is available.
Is A Home Warranty Worth It In New Mexico?
Yes! There are many benefits to owning a home warranty in New Mexico, most obvious that home warranty companies eliminate the hassle and stress that comes with home repairs on items like a water heater.
Most residents of New Mexico find that coverage plans that include air conditioning, heating system, plumbing or septic, and pool/spa make owning a home warranty worth it. For example, finding a company that covers heating system repairs is essential for the colder months in northern NM.
How To Choose Coverage In New Mexico (Is It Unique)?
Step 1: Decide What You Need Covered
When looking around your southwestern custom built home, Spanish-style hacienda, or northern New Mexico styled home, consider the most important items to you and opt-into the coverage plan that best suits your needs.
For example, if you prefer only appliances like your clothes dryers, clothes washers, dishwashers and cooktops to be covered, a basic systems plan that is offered by most companies would protect these items best. The same goes for a systems plan.
However, if you want to make sure that items like your pool and spa, garbage disposal and sprinkler systems are insured, be sure to purchase add-ons for these items, as they are generally not covered by basic or combo plans.
Step 2: Pick a Home Warranty Provider and Plan
The second step (and the most fun step) is to actually select a provider! You most likely know exactly what you’re looking for in coverage plans and have completed most of your research on ReviewHomeWarranties.com, aka you deserve a Chimayo Cocktail or refreshing lemonade.
The last crucial item to consider, is the cost of your plan and how it fits in with your budget. Consider the deductible costs and premium costs, as these are your gateway to repair and maintenance coverage, 24/7.
Step 3: File A Claim, Pay The Service Call Fee, Wait For Repair!
This step is what we like to call the three C’s at RWH for New Mexico residents-- Claim, Call Fee and Contractor.
Claim: Begin by contacting your home insurance company to file a claim, which generally can be done through a service call or online.
Call Fee: Once the claim is filed, the company will verify your coverage plan with your specific service request and will work to schedule you a technician. Top companies like American Home Shield have a contract network of 15,000 repairmen and counting, giving you the flexibility of localized help relative to where you live, whether that be Santa Fe, Rio Rancho or Roswell!
Once the appointment has been mutually scheduled, you will need to pay a call fee for your home professional's service.
Contractor: The contractor will be dispatched to your home to repair or replace the broken part. Your job simply is to relax and enjoy the stress-free process of home maintenance with home warranty coverage.
Top Home Warranties For New Mexico Reviewed
#1 Choice Home Warranty
Choice Home Warranty is our top pick for coverage in New Mexico. Why? Because they offer affordable plans plus several add-ons, like second refrigerator coverage, pool and spa, stand-alone freezer, limited roof leak and central vacuum. For the average New Mexico homeowner, pool coverage is a must during the summer months and Choice offers coverage for an additional $160/month, much lower than American Home Shield’s cost of an additional $255/month.
Choice Home Warranty also stands out because of their free transfer of contracts, putting their policies and coverage above the industry standard. On average, most companies charge $11 to transfer a contract. Because of their extensive network, if you are moving to New Mexico or moving from, your contract will carry over for free.
- Editor’s overall #1 pick
- Offers generous add-on options of central vacuums, pools, spas, septic and well
- Great promotions and discounts frequently offered to members and new-members
- No customizable plans available
- No free coverage offered, like Total Home Protection’s roof coverage
- A/C coverage isn’t included in basic plan
#2 American Home Shield
American Home Shield lives by their motto of “Life Happens, Have a Plan” and encourages residents in New Mexico to do the same. So, American Home Shield makes it easy to always have a plan for your emergency home appliance or system situations with customer service available around the clock.
Air conditioning coverage is a necessity in New Mexico, which is why it is included in AHS’s Appliances, Combo and Build Your Own Plan. Some companies like Choice Home Warranty do not offer A/C in their most basic plan, but American Home Shield offers up to $1,500 in repair and replacement plus free A/C filters. Not only will AHS’s A/C coverage keep you cool, but the free filters keep you in good health by preventing the building up of pollen, mold and germs in your home.
- Comprehensive coverage of 21 appliances and systems in Combo Plan
- Three different trade-fee service options available based on coverage plan, compared to Choice’s flat fee of $85.
- Oldest in the industry (49 years), compared to Choice Home Warranty’s 10 years of experience
- Plans are among the most expensive in the industry
- No choice over which technician is contracted
#3 Select Home Warranty
Select Home Warranty is our third pick because they offer limited coverage of your roof in any of their three plans at no added cost, and two months of free coverage when you sign up. No other home warranty company in this review offers free roof leak repair and replacements.
Select Home Warranty is also one of the only companies on the market to offer additional coverage for your sprinkler system. A working sprinkler system is a must in New Mexico to get full landscape coverage, as some properties span over 5,000 square feet. Similar to roof leaks, Select will cover up to $400 in repair and replacements costs to keep your grass year-around.
- Roof coverage and sprinkler system coverage available for all three plan options
- 24/7/365 coverage available, including weekends and after-hours
- Sales are pushy
- 10,000 contractors in their network, compared to both Choice and AHS network of 15,000
#4 Total Home Protection
Total Home Protection is one of the newest and fast-growing companies on the home warranty market for homeowners in New Mexico. Homeowners enjoy their satisfactory customer service, which is seen by the 4.4-star rating on Google, compared to the average of 3.2.
Total Home Protect is available 24/7/365 for New Mexico residents. Their cancellation fee is only $50 compared to higher costs of $75 with Select Home Warranty. So, if you double-schedule your home repair with your visit to the White Sands National Park, rescheduling isn’t a big deal.
- Sample contract available online
- Lower cancellation fee
- Free second opinion and coverage for reservice of repairs
- Does not cover pre-existing conditions or negligence
- Coverage for ductless a/c units and humidifiers are not included.
- Has not been in business as long as other providers
#5 First American Home Warranty
First American Home Warranty is known for some of the best claim acceptance in the industry, so if you have been a long-time resident in New Mexico and want good coverage for your money, FAHW is for you.
FAWH offers the lowest price for a coverage plan in this review, starting at $28 a month. Similarly, their service fee of $75 is lower than Choice Home Warranty’s $85 dollar charge.
Even though they don’t offer many optional add-ons, they do offer pool and spa coverage. Their limits on pool coverage are $1,500 in repair and replacement, compared to Choice Home Warranty that only offers up to $500. This $1,000 extra can go a long way when it comes to pool repairs.
- Earned a B+ BBB rating, compared to Select Home Warranty’s B- rating
- Online chat support, compared to Total Home Protection who doesn’t offer this customer service
- Higher limits for covered items
- Can’t choose which contractor is sent to your home
- Very limited additional coverage options
Final Thoughts On Home Warranties In New Mexico
Out of all the home warranty reviews, we recommend Choice Home Warranty as the best service provider for New Mexico. Choice is not only a fan favorite of the industry but has served New Mexico residents for over 10 years, offering quality coverage plans and fair repair and replacement costs. If you want more bang for your buck and more time outdoors rather than dealing with home issues, Choice Home Warranty is for you.