The New Mexico Office of the Superintendent of Insurance (OSI) has announced that the coverage limit for commercial properties under the New Mexico Fair Access to Insurance Requirements (FAIR) Plan will increase from $1 million to $2 million. The FAIR Plan serves as an insurance option of last resort for property owners in high-risk areas, especially those rebuilding after wildfires.
Earlier this year, the OSI raised the maximum residential property insurance limit available through the FAIR Plan from $350,000 to $750,000. The latest change aims to support more than 7,200 residents and 280 businesses currently enrolled in the FAIR Plan, as well as future applicants.
“This summer I was glad to approve, and have the Governing Committee adopt, the increase to residential rates under the FAIR Plan. Now, we are taking another positive step forward by increasing FAIR Plan coverages for commercial properties by $1 million,” said Superintendent Alice Kane. “This move will help better serve the more than 7,200 residents and 280 business enrolled in the FAIR Plan, as well as future enrollees. I look forward to the benefits this will provide to business owners who have been impacted by wildfires, especially as many commercial property owners continue to face non-renewals and cancellations.”
The OSI encourages residents in high-risk wildfire zones to reduce fire hazards near their homes. Homeowners, particularly those near wildland urban interfaces or with dense trees on their property, are advised to follow standards set by the Insurance Institute for Business & Home Safety (IBHS) for home hardening and fire prevention.
“This increase to limits for commercial property insurance coverage will undoubtedly aid small businesses who’ve faced wildfire damage,” said Superintendent Kane. “We will continue to work towards solutions to aid New Mexicans still recovering from wildfire devastation and to help residents and property owners prepare for future, potential wildfires.”
The OSI is working with the New Mexico Energy, Minerals and Natural Resources Department (EMNRD) Forestry Division and other agencies to provide updated mitigation resources and best practices for wildfire preparation.
The Office of the Superintendent of Insurance regulates a broad range of insurance products in New Mexico, including health, life, auto, home, business, and title insurance. The agency reviews premium rates, oversees insurance company conduct, and licenses producers.
New Mexicans with private health insurance can file complaints online or contact the Managed Health Care Bureau directly. More information is available at www.osi.state.nm.us.
