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FAIR plan · New Mexico

New Mexico FAIR Plan

Checked against official sources · Last reviewed October 13, 2026

What the New Mexico FAIR Plan is

FAIR stands for Fair Access to Insurance Requirements. New Mexico's FAIR Plan Act (Chapter 59A, Article 29 of the state Insurance Code) set up the underwriting association that "shall be known as the 'New Mexico Property Insurance Program.'" Every insurer "authorized to write and writing essential property insurance" in New Mexico must be a member, and members are assessed to cover the plan's shortfalls. The plan's rates, forms and guidelines need approval from the Superintendent of Insurance.

The plan says it is "a property market of last resort" and "operates like a small insurance company underwriting our applications, issuing our policies, and adjusting our claims." It writes only property insurance for dwellings and commercial property. It was first established in 1969; the current law took effect April 1, 1985.

We are not the New Mexico FAIR Plan and are not affiliated with it. We explain its published rules; the plan and your agent make the decisions. [1][11][12][13][14]

Who is eligible

- Denied first. "The applicant must have been denied coverage in the voluntary insurance market." Your agent must keep the evidence of that denial. - Affidavit (since November 4, 2025). You and your licensed insurance producer must sign an affidavit, "with the original application for insurance, and again at renewal," that the producer "has received a declination of binding insurance" from the regular market. The plan says affidavits must be e-signed, and the producer's e-signature is required "to avoid cancellation." - Fixed location in New Mexico, used for something other than farming or large manufacturing, and you (or your lender) must have an insurable interest. - No arson convictions. "The applicant must not have any record of conviction involving arson laws." - No vacant property. A building "having no tenant for more than sixty days," or under renovation with no tenant, counts as vacant. - No new applications near an active fire. The plan "will not accept an application for new business for a property that is within 50 miles of an active fire." Once the fire is at least 90% contained, the application may be resubmitted. - Hazards fixed first. The property must be free of hazardous conditions such as faulty wiring or heating, a deteriorating roof, debris, or "brush exposure." If an inspection finds hazards, you must fix them before a policy is issued.

The plan's standards say "No risk shall be declined for neighborhood or area location or any other environmental hazard beyond the control of the property owner." [1][2][3][4][15]

What it covers and what it doesn't

Homes are written on the DP-0001 dwelling fire form and businesses on the CP 0099 commercial form; both are actual cash value forms. OSI's FAIR Plan rule defines actual cash value as "replacement cost minus depreciation."

Covered perils: fire (including lightning and internal explosion); extended coverage (windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles, smoke, volcanic eruption); and vandalism or malicious mischief.

Not covered: the plan's July 2025 presentation to lawmakers lists water damage, theft, liability, ordinance or law, and earth movement as coverage not provided. The plan's FAQ adds that it does not offer premises liability, "nor can an additional fee be paid to add liability on to the policy." Flood is a separate policy; see our sister site FloodHawk.

No replacement cost. "No replacement cost insurance will be provided," and "No property shall be insured for more than its actual cash value." New Mexico law generally requires homeowners policies to pay repair or replacement cost without depreciation, but OSI's FAIR Plan rule says that requirement "does not apply to the New Mexico property insurance program."

Limits per fire division:

Commercial policies have a $5 million total limit per policy. The plan's basic deductible is $250 on dwelling policies (minimum premium $75) and $500 on commercial policies (minimum premium $150).

After a governor's emergency order declaring a catastrophe, the plan can write builder's risk policies by ZIP code for one-year terms, renewable up to five years from the first order. The plan's requirements page shows a $750,000 dwelling limit in both protection classes under such an order, while OSI Bulletin 2025-004 shows $750,000 and $500,000. Confirm the limit for your property with the plan. [2][3][4][8][9][13][14][16]

How to apply

1. Shop first. You need a declination from the regular market. 2. Work with a licensed producer. "All new business applications must be submitted by a licensed Producer." The plan has no agents of its own and no contracts with agents, and says all licensed agents "should be willing to assist any property owner." The plan posts a list of active NMPIP producers. If you can't find a helpful producer, the plan's FAQ says "we can assist you at NMPIP." 3. Application, photos, affidavit and premium. Your producer submits the completed application, photos of all sides of the building, the signed affidavit and the quoted premium through the plan's online Producer Portal. 4. Underwriting. Agents have no binding authority. Coverage starts when "the completed application, photo's and first installment passes underwriting approval" (or on the date requested, if later). If the plan declines you, it must tell you and your agent the reasons within 10 business days, and if the property can be improved to qualify, what improvements to make.

OSI's homeowners page says you "may apply directly to the program" or use an agent. The plan's own pages and OSI's January 2026 FAIR Plan Consumer Guide say a licensed producer must submit the application. Ask the plan if you have no agent. [2][4][5][8][17][18]

Paying, claims and policy changes

- No policyholder login. The plan's online system is the Beyontec Producer Portal, used by agents. Policy changes and cancellations you request go through your producer and that portal. - Billing questions: call (505) 878-9563, extension 4 (policy billing). Mail: 7601 Jefferson St. NE, Ste. 380, Albuquerque, NM 87109 (the plan's new address). - Claims: the plan's FAQ says to "immediately notify your insurance Producer," who forwards the claim. First notice of loss "must be submitted online through the Beyontec Producer Portal." If you can't reach your producer, contact the plan (claims supervisor, extension 5). Protect the property from further damage until the claim is filed and inspected. The plan uses a third-party administrator and independent adjusters. - Premium: if your payment was less than the plan's quoted premium, it may issue the policy and bill you the difference; "If the additional premium is not paid within the time designated in the billing, the policy will be cancelled." [1][3][4][6][7][17]

Rates, assessments and recent changes

- Rates are filed by the plan and "subject to the superintendents prior approval." The plan "retains the ability to charge an adequate rate in all situations," and when an applicant has a history of frequent claims, higher deductibles may be applied with its Underwriting Committee's approval. - Mitigation discounts: applicants "may be eligible for premium discounts, as approved by the Superintendent, for mitigation completed in accordance with the standards" of the Insurance Institute for Business & Home Safety (IBHS). See the Wildfire Prepared Home program. - Assessments: the plan told lawmakers in July 2025 that it "has had three assessments in the past two years to address significant losses due to hail damage and wildfires." Under its assessment policy, assessments are made on member insurers in proportion to their premiums. - Higher limits (2025): the Superintendent provisionally raised the dwelling limit from $350,000 to $750,000 in March 2025, and Bulletin 2025-004 (July 7, 2025) approved the current limits. OSI announced on October 15, 2025 that commercial coverage rose from $1 million to $2 million. - Affidavit rule: effective November 4, 2025 (see "Who is eligible"). - Legislation: a 2025 bill to put a new board in charge of the plan (SB 81) died. In 2025 the Legislature gave OSI $10 million for the FAIR program "for mitigation, property insurance needs, programs and initiatives statewide," extended through fiscal year 2027; as of July 2026, $65,000 had been encumbered. [1][3][9][12][13][14][19][20][21][22][23]

How many people use it

These are the plan's annual reports to the Property Insurance Plans Service Office (PIPSO), counting policies issued during each year. OSI said in October 2025 that "more than 7,200 residents and 280 business" were enrolled.

OSI told lawmakers in July 2026 that the most FAIR Plan policies are in the southeast, in wind-and-hail-prone Chaves and Curry counties, followed by wildfire-prone Lincoln and Otero, and that the fastest growth is in wildfire-prone Lincoln, Los Alamos, Santa Fe, Mora and Otero counties. The plan had written 577 policies over $350,000 since raising its limits. In 2025 most claims were wind and hail (469 claims, $3,572,162 paid), with 22 fire claims ($860,895), according to plan figures in a Legislative Finance Committee brief. [10][21][23][24][25]

Getting back to a regular insurer

The plan's FAQ says it "is a market of last resort with minimal coverage and if you can obtain coverage in a standard market, that is where you should go." Because the affidavit is required again at every renewal, your agent has to confirm a regular-market declination again at each renewal. OSI says a Wildfire Prepared Home certificate can be shown to insurers "to ask if any discounts, credits, or other benefits may be available." [2][4][18]

Appeals and help

- Appeals. Under the FAIR Plan Act, a person "aggrieved by an action or decision" of the plan may appeal to the Superintendent of Insurance "within thirty days from the date of the action or the decision." The Superintendent decides after a hearing held on 30 days' written notice. - The plan: (505) 878-9563, fax (505) 878-9566; underwriting supervisor extension 2. - Complaints about an insurer or agent: New Mexico Office of Superintendent of Insurance, Consumer Assistance Bureau, (855) 427-5674, or OSI's complaint page. - More on New Mexico's rules if you were dropped: Homeowners Insurance in New Mexico. [6][11][18][26]

Questions people ask