STATE
Record number of NM homeowners lose insurance coverage
Nonrenewals have nearly tripled since 2021, with wildfire-prone counties hit hardest, state insurance superintendent tells lawmakers.
A record number of New Mexico homeowners, particularly in fire-prone counties, such as Mora County pictured above, were forced to find new insurance policies in 2025 due to insurance company nonrenewals, according to the state Office of the Superintendent of Insurance.
National insurers opted not to renew more than 6,200 homeowners鈥� insurance policies in New Mexico in 2025, marking the highest-ever number of nonrenewals in the state amid increasing industry fears of wildfires, floods and other disasters.
The number of nonrenewals each year has nearly tripled since 2021, when insurers opted not to renew policies for roughly 2,200 homeowners, according to figures that state Insurance Superintendent Alice Kane presented Tuesday to lawmakers on the Legislative Finance Committee.
The sharp increase has prompted the New Mexico Office of the Superintendent of Insurance, which Kane oversees, to step up its data collection from the state鈥檚 top 10 insurers to better identify why homeowners are losing their policies. So far, homeowners in Rio Arriba, Taos, Sandoval and Santa Fe counties appear to be most at risk, Kane said.
鈥淭he majority of these nonrenewals are coming in wildfire-prone areas, and we want to continue to monitor this,鈥� Kane told lawmakers.
The record number of nonrenewals stood out as one of several indicators Kane outlined that showed a mixed picture of how the private insurance market is or isn鈥檛 covering New Mexico homeowners.
The state鈥檚 top 10 providers suffered major revenue losses in 2024 and 2025 in New Mexico, due to the, she said. But in the decade before that, the carriers largely met their profitability targets in New Mexico.
And she noted that no company has pulled out of the state entirely,
As for homeowners, premiums have increased at accelerated rates since the pandemic due to supply chain issues for construction materials and recent wildfires. But average insurance premium increases were less than 5% in 2025 and 2026, far less than the 9.3% increases in 2024 and 15% in 2023, Kane noted.
Officials with the state鈥檚 biggest insurer, State Farm, did not respond to Source NM鈥檚 request for comment Wednesday about the rate increases or nonrenewals. The company holds more than one-fifth of New Mexico homeowners insurance policies, according to the OSI.
Lawmakers at the Tuesday hearing asked Kane about the impact of recent legislative efforts to buttress the Fair Access to Insurance Requirements Plan, often called the 鈥渋nsurer of last resort,鈥� which serves homeowners whose policies are not renewed, along with others who otherwise can鈥檛 to secure private market insurance.
In 2025, to the OSI to help homeowners with FAIR Plan coverage mitigate their homes against wildfire risk, including measures like clearing trees from near structures, installing screens on vents and making roofs more flame resistant.
Kane said Tuesday that the grant program is still in its early stages. Still, she said that she is hopeful insurers will see other statewide efforts at mitigating wildfire risk to homes and choose to continue covering homeowners.
She also said insurers will soon start offering discounts to homeowners who prove they鈥檝e minimized wildfire risk, she said.
鈥淲e鈥檝e seen in a number of situations where there were going to be non-renewals. If the homeowner has mitigated 鈥� sometimes the non-renewal is canceled,鈥� she said. 鈥淎nd they鈥檙e able to keep their insurance.鈥�
