To Increase New Mexico FAIR Plan Policy Limits for Wildfire Prone Areas Statewide

Superintendent Kane says more needs to be done for homeowners and small business and praises efforts of Senators Wirth and Ramos, and Representatives Vincent and Gonzales to Raise Insurance Protections for All New Mexicans

Santa Fe, NM – Citing an immediate need to help New Mexico residents rebuild their homes destroyed by wildfires, New Mexico Superintendent of Insurance Alice Kane increased maximum residential property insurance limits for policies from $350,000 to $750,000 through the New Mexico Fair Access to Insurance Requirements Plan (NM FAIR Plan). The move, adopted by the NM FAIR Plan Governing Committee, clears the way for residential homeowners to secure needed insurance as they rebuild in areas impacted by wildfires.

"This is a much needed first step to help New Mexico residents secure home insurance to rebuild after losing their homes destroyed by wildfires," says New Mexico Superintendent of Insurance Alice Kane. "There is still work that needs to be done to help small businesses through increased limits for commercial property insurance coverage and mitigation through home hardening requirements."

The Superintendent provided provisional approval to increase the maximum coverage limits for one to four family dwellings to $750,000 statewide. The provisional approval also permits a builder's risk policy to be issued by zip code for a one-year term and renewed for a maximum of five years when an Executive Emergency Order is declared by the governor. The Superintendent's provisional approval expires on June 20, 2025. New Mexicans will immediately receive critical relief until the legislation takes effect.

New Mexico Senate Bill 81 sponsored by Senator Peter Wirth (D-Santa Fe), Senator Gabriel (Gabe)
Ramos (R-Grant, Hidalgo & Luna), Representative Anita Gonzales (D-San Miguel & Torrance) and Representative Harlan Vincent (R-Lincoln & Otero) amends the NM FAIR Plan Act. This bill, if passed by the Legislature and signed by the Governor, will increase property insurance coverage limits up to $750,000 for residential structures (up from $225,000- $350,000), and up to $2 million on commercial structures (up from $250,000- $1,000,000).

Representative Harlan Vincent first proposed these solutions for Lincoln County to the FAIR Plan Governing Committee in August 2024. The Superintendent strongly supported Representative Vincent's changes to the NM FAIR Plan at the September meeting of the Governing Committee. The On February 20,2025 the Governing Committee passed the increase to the residential coverages statewide.

About the Office of the Superintendent of Insurance
The Office of the Superintendent of Insurance (OSI) is New Mexico's agency for oversight and regulation of insurance. OSI oversees private health and life insurance, auto insurance, business insurance, home insurance, and title insurance. OSI reviews premium rates and other plan details to ensure insurance is reliable, the company is financially solvent, and rates are fair and reasonable. By overseeing producers (formerly known as brokers and agents) who sell insurance in New Mexico, OSI is committed to consumer protection and will do everything in its power to make sure that New Mexicans are treated with fairness and honesty when it comes to matters of insurance. For more information visit: https://www.osi.state.nm.us/