As natural disasters become more frequent and severe, homeowners and real estate professionals in New Mexico are facing new challenges in securing affordable property insurance. What used to be an issue mainly in coastal states like California and Florida is now affecting inland areas—including our own communities here in New Mexico.

A Changing Insurance Landscape

Across the country, insurance companies are raising premiums, limiting coverage, or leaving high-risk areas altogether. New Mexico isn't immune. Wildfires, flash flooding, and long-term drought have all contributed to rising insurance costs and tighter policy restrictions. For some buyers, that can mean fewer coverage options—or none at all.

When insurance becomes expensive or unavailable, home sales can stall. Lenders require proof of coverage before finalizing a loan, so a lack of insurance can delay or cancel a transaction. REALTORS® are increasingly hearing from clients who are worried about insurability before they even make an offer.

Natural Disasters Closer to Home

Here in Grant County and surrounding areas, local experts such as Mike Rowse with Farm Bureau Financial Services, Scot Fuller from Grant County Emergency Management, and Roger Goves of Grant County Fire Management have emphasized that prevention and preparedness are key at Silver City REALTOR® meetings. Simple steps like clearing brush, creating defensible space, and maintaining fire-safe building materials can make a real difference—and may help homeowners keep insurance coverage affordable.

Flooding is another concern. Sudden monsoon rains can cause flash floods in dry arroyos and low-lying neighborhoods. Many homeowners don't realize that standard insurance doesn't cover flood damage, and separate flood insurance can be costly.

The Role of the New Mexico FAIR Plan

For homeowners who are unable to secure insurance through the standard market, the New Mexico FAIR Plan (Fair Access to Insurance Requirements) offers a safety net. Established in 1969, the FAIR Plan provides essential property insurance to qualified applicants who cannot obtain coverage elsewhere. The plan offers coverage limits ranging from $225,000 to $350,000 for residential properties and up to $1 million for commercial properties.

While the FAIR Plan serves as a crucial resource, it is important to note that it may not provide the same level of coverage or benefits as standard insurance policies. Homeowners should carefully review the terms and consider additional coverage options to ensure adequate protection.

REALTOR® Commitment

The New Mexico Association of REALTORS® (NMAR) recognizes the importance of a stable and accessible property insurance market. As Josh Price, Legislative Committee Chair, NMAR, states:

"NMAR recognizes the critical importance of a stable and accessible property insurance market. We'll continue working with industry partners and policymakers throughout the interim and into the next session to address ongoing insurance challenges. Building on last session's efforts that supported increases to the NM FAIR Plan, we remain committed to advocating for policies that protect property owners and strengthen New Mexico's insurance market."

What REALTORS® Can Do

Local cooperation matters, too. By working with fire management teams, insurers, and local agencies, REALTORS® can help promote safer communities and maintain access to insurance options.

Looking Ahead

As New Mexico continues to face wildfires, floods, and drought, the connection between natural disasters, insurance, and real estate will only grow stronger. By staying informed and proactive, REALTORS® can help ensure that homeownership in our region remains both attainable and resilient—no matter what challenges come our way.