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Checked against official sources · Last reviewed October 13, 2026

What homeowners insurance costs in New Mexico: average premium, 2023 $1,490 a year in New Mexico vs. $1,737 countrywide · 31st highest of 51 · All states (HO-3 policies; NAIC)

The market right now

Insurers have been dropping more New Mexico homes, especially where wildfire risk is high.

- Nonrenewals rising. OSI says that from January 1, 2021, to July 1, 2024, there were "over 10,000 homeowners non-renewals in New Mexico from the top 10 insurers," with "a significant jump in 2023." In a July 21, 2026 presentation to the Legislative Finance Committee, OSI said nonrenewals "continued to increase in 2025," with the largest increases in wildfire-prone Rio Arriba, Sandoval, Santa Fe and Taos counties. OSI said it will start a quarterly data call with the top 10 carriers to track nonrenewals. - Losses. A July 2026 Legislative Finance Committee brief says that, based on 2024 NAIC data, New Mexico's homeowners market "had an average loss ratio of 118 percent" (the share of premiums paid out in claims), against a 2024 U.S. average of 61.2%, and that this "is likely influenced by wildfires, including the South Fork and Salt wildfires." - Uninsured homes. In July 2025, OSI cited a Consumer Federation of America estimate that 13% of New Mexico properties are uninsured, "the second highest rate in the country behind Mississippi." - More people in the FAIR Plan. OSI told lawmakers in July 2026 that the plan's fastest growth is in wildfire-prone areas, naming Lincoln, Los Alamos, Santa Fe, Mora and Otero counties, and that the plan had written 577 policies over $350,000 since raising its limit to $750,000. - How rates are set. Homeowners rates in New Mexico fall under a "file and use" law: insurers must submit rate filings before the rates take effect, but they don't need approval first. OSI told lawmakers the state "could consider revising the filing law" for these lines. You can look up rate filings in OSI's SERFF filing search. [5][9][10][11]

What the state did after the big wildfires

When the governor declares an emergency, state law lets the Superintendent of Insurance "take those actions necessary to ensure access to insurance and the stability of insurance markets during the emergency." OSI has used that power after major fires in 2022, 2024 and 2025:

- 2022 (Hermits Peak and other spring fires). In a May 5, 2022 letter clarifying an April 21 request, OSI asked homeowners insurers to take specific steps on claims from four fires, including Hermit's Peak. On May 11, 2022, it issued an Emergency Order that, among other things, placed "a moratorium on health and property insurance cancellations in the affected counties for 90 days." - 2024 (South Fork and Salt fires, Ruidoso area). After the governor's June 18, 2024 executive order for Lincoln County and the Mescalero Apache Reservation, OSI ordered home and property insurers to give premium grace periods, waive deductibles, "postpone cancellations and non-renewals," and, where the policy covers additional living expenses (ALE), "promptly issue advanced payment of $5000.00." The Second Amended Emergency Order (October 1, 2024) also requires ALE for up to 12 months for displaced homeowners and stays in effect until the governor's executive order "is renewed, modified, or rescinded." As of Oct. 13, 2026, OSI's website doesn't say whether that has happened; ask OSI if you live in the affected area. - 2025 (Trout Fire, Grant County). On June 18, 2025, OSI issued an Emergency Order for 90 days requiring property insurers to give grace periods, waive deductibles and "postpone cancellations and non-renewals."

These orders cover only the areas and periods named in each order. If a fire is declared an emergency where you live, check OSI's wildfire page or call (855) 427-5674.

Claims after a fire. New Mexico law says residential property insurance "shall provide coverage for the cost to repair or replace without deduction for depreciation." OSI's 2024 bulletins reminded insurers of this, and said insurers may not pay only actual cash value because repairs weren't finished within a set time. (This rule does not apply to the FAIR Plan; see below.) [5][6][12][13][14][15][16][17][18][19]

If your insurer cancels or won't renew

New Mexico's cancellation law is section 59A-18-29 of the Insurance Code, and OSI's rule 13.8.4 NMAC sets the details for property and casualty policies, including homeowners.

Nonrenewal. An insurer or agent that won't renew "shall mail to the insured, not less than thirty (30) days prior to the expiration date of the policy, a written notice of non-renewal." This doesn't apply when the policy moves at renewal to an affiliated company, but then you must get at least 30 days' written notice of the change, with the new company's name, the reason, and any premium or coverage change.

Cancellation during the policy term:

After 60 days, the only other allowed reasons in the rule are: the policy was obtained through material misrepresentation or fraud; "willful and negligent acts or omission by the insured have substantially increased the hazards insured against"; or you presented a claim "based on fraud or material misrepresentation."

OSI's homeowners page puts it more simply: companies "shall give policyholders at least ten days notice prior to the date of cancellation and 30 days notice prior to the date of non-renewal." Its list of cancellation reasons is a little longer than the rule's; the rule above is the controlling text.

Unlike cancellation, the nonrenewal rule (13.8.4.9 NMAC) sets only the notice; it lists no required reasons. Bills in 2025 (SB 81, to restructure the FAIR Plan) and 2026 (HB 204, on wildfire risk models and underwriting) died without becoming law.

Asking about damage isn't automatically a claim. Since June 20, 2025, state law makes it an unfair claims practice to treat your inquiry about damage or loss "as a claim when the facts of the inquiry are not covered in the policy, the insurer makes no payment to or on behalf of the insured and the claim does not involve deceptive practices on the part of the insured" (section 59A-16-20; OSI Bulletin 2025-010).

If you think the reason is unfair, OSI says to call the insurer's consumer affairs division first, then the Consumer Assistance Bureau at (855) 427-5674. [1][5][6][20][21][22]

Last resort: the New Mexico FAIR Plan

The New Mexico Property Insurance Program (NMPIP) runs the New Mexico FAIR Plan (Fair Access to Insurance Requirements). State law requires every insurer writing essential property insurance in New Mexico to be a member. It calls itself "a property market of last resort."

Before you apply, know what it is and isn't:

- You must be turned down first. You must have been "denied coverage in the voluntary insurance market." Since November 4, 2025, you and your licensed agent must sign an affidavit, with the application and again at each renewal, that the agent got a declination. - Basic coverage only. Fire, extended coverage (wind, hail, smoke and others) and vandalism. It does not offer liability coverage, and it doesn't write vacant property. - Actual cash value. "No replacement cost insurance will be provided." OSI's rule says the state's repair-or-replace requirement for homeowners policies "does not apply to the New Mexico property insurance program." - Limits. Up to $750,000 for a one- to four-family home with fire protection class 1-7, and $500,000 for class 8-10 (approved by OSI Bulletin 2025-004, July 7, 2025; the limit had been $350,000). - Not during an active fire. The plan won't accept a new application for a property within 50 miles of an active fire until the fire is at least 90% contained.

Details, links and how to apply are on our New Mexico FAIR Plan page. [2][3][4][6][7][23][24][25]

Wildfire discounts and the Wildfire Prepared Home program

New Mexico doesn't have a law requiring insurers to give a set wildfire mitigation discount. What exists:

- Wildfire Prepared Home certificates. OSI promotes this program from the Insurance Institute for Business & Home Safety (IBHS). You do the work on a checklist, apply, and an evaluator confirms it. The Base level includes "a 0–5-foot noncombustible zone, maintaining 30 feet of defensible space, and upgrading vulnerable building features." If more work is needed after the visit, you have 90 days to finish it and send photos. OSI says you can share the certificate with your insurer "to ask if any discounts, credits, or other benefits may be available," and that "A certificate is not guaranteed." - Fee discount. OSI's promo code NMGRANT "may reduce the IBHS application fee" (OSI says to choose "Self Service" when applying). Start at wildfireprepared.org. - State inspectors. IBHS trained a team of OSI employees to do inspections. OSI says it issued its first certificate through the program in March 2026, to a homeowner in Otero County, and is setting up more inspections around the state. - What insurers are filing. OSI told lawmakers in July 2026 that "2026 homeowner filings include discounts up to 18% for IBHS Wildfire Prepared Home Plus mitigation and 5% for Firewise communities." Ask your insurer what it offers. - FAIR Plan. The plan's requirements say applicants "may be eligible for premium discounts, as approved by the Superintendent, for mitigation completed in accordance with the standards" of IBHS. [4][5][10][26][27]

Grants and state wildfire programs

- FAIR Plan mitigation money. In the 2025 session the Legislature appropriated $10 million to OSI for the New Mexico FAIR program "for mitigation, property insurance needs, programs and initiatives statewide," and the appropriation "was extended through fiscal year 2027." A July 2026 Legislative Finance Committee brief says OSI had encumbered $65,000 of it, mostly for personnel costs. OSI's homeowners page (checked Oct. 13, 2026) lists the NMGRANT fee code; it doesn't describe a separate grant application. The State Forestry Division's wildfire page says FAIR Plan policyholders "can take advantage of grant opportunities for retrofit costs" by visiting OSI's website. Ask OSI at (855) 427-5674 what is available. - Wildfire Prepared Act (2025). Senate Bill 33, signed April 7, 2025 (Laws 2025, chapter 55), created a "wildfire prepared program" in the Energy, Minerals and Natural Resources Department. It can give grants to local governments and to "qualified entities to assist eligible property owners" in making homes wildfire prepared, and at least half the grant money must go to that homeowner help. The state Fire Planning Task Force (which now includes the Superintendent of Insurance) sets the standards and grant rules. Check with the State Forestry Division for current help. [5][11][28][29][30]

Surplus lines

If regular (admitted) insurers won't cover you, a surplus lines broker may place you with a nonadmitted insurer. New Mexico law allows that only through a licensed surplus lines broker, and only if the coverage "cannot be obtained from insurers authorized to do business in this state" after "a diligent search."

Two things to know. New Mexico's cancellation and nonrenewal rule (13.8.4 NMAC) defines "insurer" to include "any non-admitted insurance company providing property and casualty policies of insurance through a surplus line broker," so the notice rules above apply. But the state's guaranty association, which pays claims if an insurer goes broke, covers insurers "licensed to transact business in this state," and surplus lines insurers are nonadmitted. More on how this works: surplus lines insurance. [1][6]

Flood is a separate policy

OSI says flood damage "from ground-water or rain runoff and snow-melt is not" covered by a homeowners policy, and that you "must get additional coverage through The National Flood Insurance Program (NFIP) or private insurers." For flood zones and flood insurance, see our sister site FloodHawk. [5]

Where to get help

OSI says to start with your insurance company: ask for an explanation and make sure you've given it everything it asked for. If that doesn't work, file a complaint through OSI's complaint page or call the Consumer Assistance Bureau at (855) 427-5674.

What OSI can't do: it says it cannot "Order the company to pay your claim or refund premium," "Recommend an agent, company, or products," or "Determine the cause of loss, the value of a claim, the amount owed to you, or act as your adjuster." For those you may want a private attorney.

If the New Mexico FAIR Plan (or an insurer acting for it) makes a decision against you, state law lets you appeal to the Superintendent of Insurance "within thirty days from the date of the action or the decision." [5][6][8][31]

Questions people ask