New Mexico’s Superintendent of Insurance, Alice Kane, has announced an important change that will help homeowners in the state. The maximum coverage for residential property insurance has been raised from $350,000 to $750,000. This decision comes through the New Mexico Fair Access to Insurance Requirements Plan, known as NM FAIR Plan.
The increase is especially significant for those affected by recent wildfires. With many homes destroyed, this new limit allows homeowners to secure the necessary insurance as they begin to rebuild. Kane expressed her hope that this step will provide much-needed support to residents who have lost their homes.
The NM FAIR Plan Governing Committee approved this change, which applies to one to four-family dwellings across the state. Additionally, the new rules allow for a builder’s risk policy to be issued based on ZIP code for a one-year term, which can be renewed for up to five years during a declared state of emergency.
Kane emphasized that while this is a crucial first step, more work is needed to assist small businesses. She pointed out the need for increased limits on commercial property insurance and measures to strengthen homes against future disasters.
The provisional approval from Kane is set to expire on June 20. In addition, New Mexico Senate Bill 81 is currently under consideration. If passed, it would further increase coverage limits for residential properties up to $750,000 and for commercial properties up to $2 million, significantly raising the previous limits.
This initiative reflects a growing recognition of the challenges faced by homeowners and businesses in areas prone to wildfires, aiming to provide better support as they recover and rebuild.