Santa Fe, NM – As New Mexico is well into peak wildfire season this year, the Office of the Superintendent of Insurance (OSI) is reminding residents about the benefits of the New Mexico Fair Access to Insurance Requirements (FAIR) Plan.

New Mexico Superintendent of Insurance Alice Kane approved the increased maximum residential property insurance limits for policies from $350,000 to $750,000 through the FAIR Plan – the insurance coverage of last resort, which is an alternative path forward for residents in high-risk areas to find coverage. The New Mexico FAIR Plan Governing Committee adopted the move, which clears the way for residential homeowners to secure needed insurance as they rebuild in areas impacted by wildfires. Now, Supt. Kane is focused on additional efforts to aid small businesses and bolster home-hardening mitigation efforts.

“This move to increase residential rates, adopted by the Governing Committee, is a promising step forward to better serve the more than 7,200 residents and 280 business enrolled in the FAIR Plan, as well as future enrollees,” said Supt. Kane. “Now, in light of the non-renewals and cancellations that many homes and businesses are experiencing at alarming rate, I am committed to making further improvements to the plan that will truly make an impact on New Mexicans in need; namely – to increase limits for commercial property insurance coverage to aid small businesses and to implement mitigation efforts and home hardening requirements.

From January 1, 2021, to July 1, 2024, there have been over 10,000 homeowners non-renewals in New Mexico from the top 10 insurers. There was a significant jump in 2023, and the trend remains elevated in 2024. The majority of these non-renewals come from the largest and most sophisticated insurers. OSI anticipates non-renewal activity to continue as smaller insurers catch up and the market reacts to the significant wildfire in Los Angeles in early 2025.

The Consumer Federation of America estimates that 13 percent of New Mexico properties are uninsured. This is the second highest rate in the country behind Mississippi. OSI anticipates this number to grow as companies continue non-renewal activity, unless additional adjustments are made to the FAIR Plan.
“It is clear that more must be done to aid New Mexicans still recovering from wildfire devastation and to help residents prepare for future, potential wildfires,” Supt. Kane continued. “The OSI is consulting with the FAIR Plan Governing Committee to distribute the $10 million in grants currently available to help people mitigate their homes.”

More from OSI on Home Mitigation Efforts

OSI encourages residents who live in high-risk areas to continue to remove fire hazards from around their homes in order to mitigate any potential damage. Especially for those in higher-risk areas – those who are up against the wildland urban interface (WUIs) or have dense trees on their property – OSI recommends that homeowners follow Insurance Institute for Business & Home Safety (IBHS) standards, which sets criteria for hardening the home and preventing the spread of fires.

OSI is working closely with the New Mexico Energy, Minerals and Natural Resources Department (EMNRD) Forestry Division and many other agencies to ensure that residents have the most up-to-date mitigation resources and best practices.
You can read more about wildfire preparation from OSI here.
For more information on the current FAIR Plan, visit here.

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