A bill aimed at enhancing protection for residents in high-risk wildfire areas has successfully passed the New Mexico Senate. The legislation, known as Senate Bill 81, proposes changes to the New Mexico FAIR Plan, a program established in 1969. This initiative assists New Mexicans who struggle to obtain property insurance from traditional providers due to their location in disaster-prone areas.

Administered by the New Mexico Property Insurance Program (NMPIP), the FAIR Plan allows homeowners and businesses to secure insurance based on Actual Cash Value for their properties. The proposed updates under Senate Bill 81 address the need for higher coverage limits amid inflation, increased natural disasters, and rising rebuilding costs.

The changes include raising the coverage limit for occupied residential structures from $250,000–$350,000 to $750,000 and increasing commercial structure coverage from $250,000–$1 million to $2 million. These adjustments are intended to help New Mexicans rebuild after severe wildfires and ensure that the program remains a reliable resource.

Additionally, the bill mandates mitigation efforts to prevent future wildfire damage. As wildfires pose an escalating threat, these updates are viewed as crucial for securing the future of thousands of residents in New Mexico.

Senate Bill 81 will now proceed to the House of Representatives for further consideration.