The New Mexico FAIR Plan, explained
What New Mexico's insurer of last resort covers, who qualifies, and how to use it as a bridge instead of a destination.
By the TMRW Team · Published September 13, 2026
The short answer
- The New Mexico Property Insurance Program (NM FAIR Plan) is New Mexico's insurer of last resort — basic property coverage for homes the regular market won't take.
- Like most FAIR plans, it covers fewer kinds of damage than a normal policy and usually costs more — treat it as a bridge while you work back to a regular insurer.
- Check the alternatives below before settling in; many homeowners qualify for the regular market again sooner than they expect.
Quick facts
| Official name | New Mexico Property Insurance Program (NM FAIR Plan) |
| Website | nmpropertyinsurance.com |
| Consumer phone | (505) 878-9563 |
| Established | 1969 |
| Maximum home coverage | $750,000 ($500,000 in areas with limited fire protection — Protection Class 8–10, typically far from a fire station and hydrants) |
| Covers | Fire, including lightning and explosion that starts inside the home, Windstorm and hail, Riot and civil commotion, Damage from aircraft or vehicles hitting the home, Smoke damage, Volcanic eruption, Vandalism (someone deliberately damaging your property), NOT covered: theft, water leaks, floods, or lawsuits if someone is hurt on your property (no liability coverage), Policies pay actual cash value — the depreciated value of what was damaged, not the full cost to rebuild it new |
Verified against the official plan site and state insurance department — see Sources.
Who qualifies
Your property is located in New Mexico and you (or your lender) have a financial stake in it You were denied coverage in the voluntary (regular) insurance market — the plan requires a declination, confirmed by a sworn affidavit signed by you and your licensed insurance agent, at application and again at each renewal (requirement effective 2025-11-04) The property is not vacant — buildings with no occupant or tenant for more than 60 days do not qualify You meet the plan's underwriting standards; if an inspection finds hazardous conditions, they must be fixed before a policy is issued The plan will not take a new application for a property within 50 miles of an active wildfire; you can re-submit once the fire is at least 90% contained
How to apply
- 1.
Try the regular market first
The FAIR Plan is a last resort. You must be turned down by the voluntary (regular) insurance market before you qualify.
- 2.
Work with a licensed insurance agent
All new applications must be submitted by a licensed insurance producer (agent) — you cannot apply on your own. The plan's FAQ links a state lookup to verify your agent's license.
- 3.
Sign the declination affidavit
Effective 2025-11-04, you and your agent both sign an affidavit confirming a regular insurer declined to cover your property. It is required at application and again at every renewal.
- 4.
Fix any hazards the inspection finds
If the plan's initial inspection identifies hazardous conditions on the property, they must be corrected before a policy is issued.
- 5.
Pay the premium
Coverage is issued after underwriting requirements are met and the premium is received. Questions: New Mexico Property Insurance Program, 7601 Jefferson St. NE, Ste. 380, Albuquerque, NM 87109, (505) 878-9563.
What it costs
The plan does not publish premium tables on the pages reviewed; the state OSI describes FAIR Plan coverage as insuring the actual cash value of the structure "at an affordable rate", but no dollar premium figures are published.
Coverage limits were raised in 2025: the Superintendent of Insurance approved increasing the maximum residential limit from $350,000 to $750,000 (source: OSI press release, 2025-07-14).
The $750,000 residential maximum applies in Protection Class 1-7 areas (better fire protection); homes in Protection Class 8-10 areas (limited fire protection, typically far from fire stations and hydrants) max out at $500,000 (source: OSI FAIR Plan Consumer Guide).
Commercial properties can be insured up to $2,000,000 per structure, with a $5 million total coverage cap per commercial policy (source: OSI FAIR Plan Consumer Guide).
Policies pay actual cash value only — the plan's published requirements state no replacement cost insurance will be provided — so a payout may be well below the cost to rebuild (source: OSI FAIR Plan Consumer Guide and plan site).
More than 7,200 residents and 280 businesses were enrolled in the FAIR Plan as of the OSI's 2025-07-14 announcement.
Alternatives in New Mexico
Keep shopping the regular market: OSI advises asking your agent whether you are in the insurer's lowest-priced company or pricing tier (source: OSI homeowners insurance page). Harden your home to get back into the regular market: OSI promotes the IBHS Wildfire Prepared Home Program, which can earn rate reductions for homes meeting its safety standards; New Mexico applicants get a discounted application fee with promo code "NM GRANT" (source: OSI homeowners insurance page). Get free state help: the OSI Consumer Assistance Bureau at 855-427-5674 helps New Mexicans with insurance problems, including trouble finding coverage.
Wherever you land, most FAIR-type policies leave gaps a second policy has to fill — see the gap (DIC) policy, explained.
Common questions
TMRW is an independent wildfire-mitigation company. We are not affiliated with, endorsed by, or connected to the California FAIR Plan Association or any state FAIR Plan, wind pool, or insurance program.
This page is educational. TMRW is not an insurance agent, broker, or producer, and nothing here is insurance advice, a coverage recommendation, or an offer of insurance. Talk to a licensed agent or broker about your coverage.
Sources
- New Mexico Property Insurance Program (official plan site) — New Mexico Property Insurance Program, accessed 2026-09-02
- New Mexico FAIR Plan Consumer Guide (PDF, updated 2026-01-27) — New Mexico Office of Superintendent of Insurance, accessed 2026-09-02
- Homeowners Insurance — consumer assistance page (FAIR Plan section) — New Mexico Office of Superintendent of Insurance, accessed 2026-09-02
- OSI press release: FAIR Plan residential limits raised to $750,000 (2025-07-14) — New Mexico Office of Superintendent of Insurance, accessed 2026-09-02
Keep reading
FAIR Plans: insurance of last resort, explained
FAIR Plans are state-organized insurers of last resort — expensive, fire-focused, and thinner than they look. What they are, what they cost, and how homeowners get back to regular insurance.
The gap policy: Difference in Conditions (DIC) insurance, explained
A DIC policy is the gap-filler that turns bare-bones FAIR Plan coverage back into something like normal home insurance. What it covers, what it costs, and how to buy one.
The California FAIR Plan, explained
What the California FAIR Plan is, what it really costs with the second policy you'll need, what happens if it runs out of money — and how homeowners get back to real insurance.