New Mexico insurers refused to renew policies for over 6,200 homeowners in 2025, a record high. This sharp increase has prompted the New Mexico Office of the Superintendent of Insurance to step up its data collection to better identify why homeowners are losing their policies.

Wildfire-Prone Areas Most at Risk

Homeowners in Rio Arriba, Taos, Sandoval, and Santa Fe counties appear to be most at risk, according to state Insurance Superintendent Alice Kane. The majority of these non-renewals are coming in wildfire-prone areas, and the office wants to continue monitoring this trend.

The record number of non-renewals stood out as one of several indicators that showed a mixed picture of how the private insurance market is covering New Mexico homeowners. The state’s top 10 providers suffered major revenue losses in 2024 and 2025 due to the 2024 South Fork and Salt Fires.

However, no company has pulled out of the state entirely, unlike in California. 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.

Efforts to Mitigate Wildfire Risk

In 2025, the Legislature gave $10 million to the Office of the Superintendent of Insurance to help homeowners with FAIR Plan coverage mitigate their homes against wildfire risk. This includes measures like clearing trees from near structures, installing screens on vents, and making roofs more flame-resistant.

Insurers will soon start offering discounts to homeowners who prove they’ve minimized wildfire risk. Sometimes, if a homeowner has mitigated their risk, the non-renewal is canceled, and they’re able to keep their insurance.

Original reporting: Las Cruces Sun News (HLL/CB) — read the source article.