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.
The move was adopted by the NM FAIR Plan Governing Committee. It clears the way for residential homeowners to secure 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,” Kane said in a statement. “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.”
Kane 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 emergency order is declared by the governor.
The superintendent’s provisional approval expires on June 20.
New Mexico Senate Bill 81 amends the NM FAIR Plan Act. If passed by the Legislature and signed by the governor, the bill would 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).
Topics Trends Mexico New Mexico