Short answer: New Mexico's residual market is the New Mexico Property Insurance Program (the FAIR Plan). It's for owners who were denied in the regular market, provides only fire, extended coverage and vandalism at actual cash value, and includes no premises liability. It won't accept new business for a property within 50 miles of an active wildfire until the fire is at least 90% contained. Insurers must give 30 days' written notice before non-renewing.
This guide is general information for New Mexico homeowners. It isn't legal advice. Your policy wording controls.
Step 1: Plan for wildfire before fire season
The Office of Superintendent of Insurance (OSI) FAIR Plan consumer guide says the FAIR Plan won't accept new business for a property within 50 miles of an active fire; once the fire is at least 90% contained, the application may be resubmitted. Don't wait until smoke is visible to fix a coverage gap. Wildfire burn scars also raise flood risk downstream, and flood needs a separate policy (FloodSmart).
Step 2: Shop the regular market, including surplus lines
Ask your agent to check admitted insurers and surplus lines. See FAIR Plan vs. surplus lines home insurance.
Step 3: The New Mexico FAIR Plan (NMPIP)
According to OSI's guide, the FAIR Plan is for property in New Mexico where you (or your lender) have an insurable interest, you were denied coverage in the voluntary market, and the property meets the plan's underwriting rules. Key limits:
- Coverage is limited to fire (including lightning and internal explosion), extended coverage perils such as windstorm and hail, smoke and vehicles, and vandalism.
- No replacement cost. Property is insured for no more than its actual cash value.
- No premises liability, and it can't be added. You'd need separate liability coverage.
- Vacant property can't be written.
- A licensed producer submits your application; the plan doesn't appoint agents.
Step 4: Non-renewal notice
Under 13.8.4.9 NMAC, an insurer must give 30 days' written notice before the policy expires. Details: New Mexico homeowners non-renewal rules.
Step 5: Claims
New Mexico law doesn't set a fixed number of days for property claims, but insurers must act reasonably promptly, and unreasonable delay can be an unfair claim practice. You can complain to OSI. More: New Mexico insurance claim deadlines.
See our tables: non-renewal notice rules by state, insurance claim deadlines by state and home insurance claim and lawsuit deadlines by state.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in New Mexico.
Frequently asked questions
Can I buy New Mexico FAIR Plan coverage during a wildfire?
Not for a property within 50 miles of an active fire. OSI says you can resubmit once the fire is at least 90% contained.
Does the New Mexico FAIR Plan include liability?
No. It doesn't offer premises liability, and liability can't be added.
Does the New Mexico FAIR Plan pay replacement cost?
No. Property is insured for no more than its actual cash value.
How much notice before a New Mexico homeowners non-renewal?
30 days' written notice before the policy expires, under 13.8.4.9 NMAC.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.