Santa Fe, NM –Today, Senate Bill 81, a bipartisan measure aimed at protecting New Mexico residents in the wake of devastating fires, passed the floor of the New Mexico Senate (34-1). The bill, sponsored by Senator Peter Wirth (D-Santa Fe) and Representative Harlan Vincent (R-Ruidoso), in partnership with the Office of Superintendent of Insurance (OSI), addresses the urgent need for increased property insurance coverage in the state, especially in light of recent natural disasters.
Senate Bill 81 aims to expand and enhance the New Mexico FAIR (Fair Access to Insurance Requirements) Plan, providing essential property insurance for individuals and businesses who struggle to secure coverage in the open market due to high-risk areas like those affected by wildfires.
“With devastating wildfires and the increasing costs of rebuilding, it’s imperative that we modernize the protections available to New Mexicans living in high-risk areas,” said Senate Majority Leader Wirth. “The passage of this bill represents a critical step in ensuring that our residents and businesses have access to adequate coverage when they need it most.”
The New Mexico FAIR Plan, which was created in 1969, helps New Mexicans who cannot obtain property insurance from traditional insurance companies due to living in areas vulnerable to natural disasters, such as wildfires, flooding, and wind damage. This program, administered by the New Mexico Property Insurance Program (NMPIP), allows homeowners and businesses to secure insurance at Actual Cash Value for their structures.
Changes in the plan under Senate Bill 81 include an increase in coverage limits, addressing the growing need for higher property protection in response to inflation, increased natural disasters, and the rising cost of rebuilding. The changes include:
- Raising the coverage limit for occupied residential structures from $250,000–$350,000 to $750,000.
- Increasing coverage limits for commercial structures from $250,000–$1,000,000 to $2 million.
These updates aim to ensure that New Mexicans can rebuild their homes and businesses, even in the aftermath of the most destructive wildfires. The changes are also designed to strengthen the program’s sustainability, addressing the growing costs of rebuilding and ensuring that the FAIR Plan remains a reliable resource for those in need.
The bill also includes provisions requiring mitigation efforts to help prevent future wildfire damage, further protecting the lives and livelihoods of New Mexico residents. As wildfires become an increasing threat, these updates to the NM FAIR Plan are seen as an important step in securing the future for thousands of New Mexicans.
Senate Bill 81 now goes to the House of Representatives for consideration.
