New Mexico High Risk Homeowners Insurance

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High Risk Homeowners Insurance In New Mexico

New Mexico, a state in the southwestern region of the United States, is known for its diverse landscape that includes deserts, high plains, and mountain ranges. It is bordered by Colorado to the north, Oklahoma and Texas to the east, Mexico to the south, and Arizona to the west. The state has a rich cultural history, influenced by Native American, Hispanic, and Anglo traditions, and it was part of the Spanish empire before becoming a U.S. territory following the Mexican-American War in the mid-19th century.

The types of risks that are most likely to cause home insurance losses in New Mexico include:

Wildfires: Due to its arid and semi-arid climate, parts of New Mexico are highly susceptible to wildfires, especially during periods of drought and high winds. These can cause significant property damage and are a major source of insurance claims.

Floods: While New Mexico is generally dry, it experiences seasonal monsoon rains, especially in the summer months, which can lead to flash flooding, particularly in low-lying areas and near rivers and streams.

Wind and Hail: Strong winds and hailstorms are common in New Mexico, particularly in the spring and summer months. These weather events can cause considerable damage to roofs, windows, and other parts of buildings.

Earthquakes: Although not as active as California, New Mexico does have some seismic activity, particularly in the northern and western parts of the state. While rare, significant earthquakes can and do occur, leading to property damage.

Some specific examples of large events in New Mexico over the last 30 years that have led to a large volume of home insurance claims include:

Los Conchas Fire (2011): This was the largest wildfire in New Mexico's history at the time, burning over 150,000 acres of land, including parts of the Santa Fe National Forest and the Los Alamos National Laboratory. The fire led to the evacuation of thousands of residents and caused significant property damage.

2006 Flooding: In August 2006, severe flooding occurred across central and northern New Mexico, caused by heavy rainfall from a late-summer monsoon. The flooding damaged homes, infrastructure, and agricultural lands, leading to a significant number of insurance claims.

Hailstorms and Windstorms: While specific events may not always make national headlines, New Mexico experiences frequent hail and windstorms that can cause significant damage to homes and vehicles, leading to widespread insurance claims. For example, a severe hailstorm hit the Albuquerque area in 2004, causing extensive property damage.

Understanding these risks is crucial for homeowners in New Mexico to ensure they have adequate insurance coverage to protect against potential homeowners insurance losses.
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Unable to Obtain Coverage?

Many consumers opt to allow their mortgage companies to add “force placed” or “lender placed” coverage to their homes. The unfortunate issue is that many times the mortgage companies do not make it clear that typically these policies  do not cover your personal property, loss of use or even your liability. They are typically insurance policies that the consumer pays for, that mostly benefits a bank and not them. It is without a doubt that mortgage forced policies are the lease safe option in the market.

Since FAIR Plans are considered the market of last resort, consumers will be best served when they find an agent with the experience in high risk insurance as well right resources and carriers. Ultimately the end goal is to obtain the right coverage at a competitive price and with the right agent that can be accomplished in almost any situation.
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**The contents of this website are provided for informational purposes only and do not constitute legal or coverage advice or an offer or solicitation for the sale or purchase of insurance. If you submit a request for a quote you will be contacted by a licensed agent who can discuss coverage options with you. Consumers are urged to try to find coverage in the private market and we can help you find an agent that can help you find alternatives to the FAIR Plan and other high risk plans. This website is no way affiliated with or sponsored or endorsed by any federal, state or local governmental agency or state fair plan. Insurance coverage not available in all states. **
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