HOUSE MEMORIAL 55

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Harlan Vincent

 

 

 

 

 

A MEMORIAL

URGING THE OFFICE OF SUPERINTENDENT OF INSURANCE TO PROMPTLY APPROVE THE PROPOSED CHANGES TO THE NEW MEXICO PROPERTY INSURANCE PROGRAM TO PROVIDE RELIEF TO HOMEOWNERS IN LINCOLN COUNTY AND OTHER COMMUNITIES THROUGHOUT THE STATE.

 

     WHEREAS, the South Fork and Salt fires of 2024 devastated Lincoln county and other areas of New Mexico, destroying hundreds of homes and businesses and leaving many residents displaced; and

     WHEREAS, the increasing risks of wildfires have made it difficult for homeowners to secure affordable insurance coverage through the private market; and

     WHEREAS, the New Mexico property insurance program, commonly referred to as the "FAIR plan", was created under the FAIR Plan Act to provide essential property insurance to responsible and qualified applicants unable to secure coverage through the normal market; and

     WHEREAS, the FAIR plan acts as the insurer of last resort and provides minimal coverage on an actual-cash-value basis, which is accepted by certain mortgage lenders, to meet mortgage requirements; and

     WHEREAS, the governing committee of the New Mexico property insurance program approved changes to the FAIR plan in February 2025, including new coverage limits that align with the needs of Lincoln county residents and other affected New Mexico residents; and

     WHEREAS, under the proposed changes, the FAIR plan would increase coverage limits for residential properties up to seven hundred fifty thousand dollars ($750,000) while maintaining coverage limitations for commercial properties; and

     WHEREAS, these changes strike a balance between providing necessary coverage for homeowners in high-risk areas and maintaining the long-term financial sustainability of the FAIR plan; and

     WHEREAS, the office of superintendent of insurance is responsible for reviewing and approving proposed changes to the FAIR plan before they can be implemented; and

     WHEREAS, delaying approval of these changes continues to prolong uncertainty for Lincoln county residents and other state residents in need of insurance coverage to rebuild and return to their homes;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the house of representatives fully support the governing committee of the New Mexico property insurance program's decision to approve increased coverage limits under the New Mexico property insurance program, recognizing that this action will provide critical relief to homeowners in Lincoln county and other communities across the state; and

     BE IT FURTHER RESOLVED that the house of representatives urge the office of superintendent of insurance to promptly approve the governing committee of the New Mexico property insurance program's proposed changes so that Lincoln county residents can secure policies as soon as possible and begin the process of rebuilding and returning to their homes; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the superintendent of insurance, the governor and the members of the governing committee of the New Mexico property insurance program.

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