Home Insurance in Hobbs, NM
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The Low Cost of Living in Hobbs
Hobbs, NM, is home to more than 39,000 people and is considered a small city. Residents in the area enjoy a variety of entertainment options and a cost of living 20.6% lower than the national average.
Housing in the area is desirable as well. While the national median home value is $338,100, the median home value in Hobbs is just $157,100. The city's homes, which average 45 years old, have an appreciation rate of 6.2%.
Purchasing Home Insurance in Hobbs, NM
Even home insurance in Hobbs, NM, is more affordable. The national average homeowners insurance cost is $1,582 per year, but it is only about $744 per year in Hobbs.
Your policy provides one of three options. The most affordable option is actual cash value. ACV covers repairing or rebuilding your home and replacing your belongings but deducts for depreciation, so you will only receive money related to the current worth of your home and possessions. Replacement costs cover the ACV without deducting for depreciation. The most comprehensive plan is guaranteed replacement cost, which pays the amount you need to rebuild, even if it's more than your policy covers.
What a Homeowners Insurance Policy Covers
Home insurance in Hobbs, NM, covers a variety of situations. Most important is that it covers the interior and exterior of your home. If your home experiences a covered disaster, you will be able to repair or rebuild it. You can also replace any belongings such as furniture, clothing or appliances.
If your home needs repairs or rebuilding that will displace you for days, weeks or longer, your insurance policy will reimburse you for things like hotel stays or meals you have in restaurants. You must adhere to a strict daily stipend unless you decide to spend more on a policy with a higher limit.
Your home insurance policy also offers personal liability coverage for damage or injuries you or your property cause to someone who doesn't live in your home. If someone falls on your property, if your dog bites someone while you're away from home or if your child accidentally breaks someone's important heirloom, your insurance will cover it up to a certain amount. Many experts recommend $300,000 in liability homeowners coverage.
Factors Affecting the Cost of Home Insurance
One of the biggest things insurers look at as a risk factor is crime in the area. Unfortunately, property crime is high in Hobbs. There are 62.8 reported incidents per 100,000 people compared to the national average of 35.4 reported incidents per 100,000 people. This means you will likely pay more than someone in an area with lower property crime.
Your home is another vital determination. The insurer will consider what materials your home is made of, how old it is, how many claims have been made on the property and how much it would cost to rebuild. If your house has updated electrical wiring, plumbing and fire security, you will likely pay less. It also helps to install a security system to lessen the chances of vandalism or burglary.
Find the right home insurance in Hobbs, NM, with help from VIU by HUB. The platform lets you choose from multiple policy options and speak with an insurance advisor who can help you determine which plan works best for you. They may even show you discounts you qualify for.
This information is intended for general informational purposes only and is not intended to constitute legal advice.