ALBUQUERQUE, New Mexico—Thousands of people in New Mexico are losing their property insurance as the risk of wildfires and floods rises across the state. In 2022, there were about 1,900 insurance nonrenewals. By 2025, that number had grown to more than 6,200, leaving families and businesses looking for coverage.
The largest jumps occurred in Rio Arriba County, where nonrenewals increased by 167% from 2024 to 2025. There was also an 18% rise in Lincoln County. State officials say that drought and wildfire scars are making it too risky for insurers to cover homes and businesses.
Alice Kane, the Superintendent of Insurance, said that flooding after a fire is becoming increasingly common. “There’s nothing to hold the water, nothing,” she said, explaining how land that has been burned by wildfires can cause dangerous runoff.
In 2025, New Mexico added to its FAIR Plan because of the disaster. The program now covers up to $750,000 for homes and $2 million for businesses, but only for people who were turned down for coverage in the open market. Lawmakers also approved $10 million in grants to help FAIR Plan policyholders build “Wildfire Prepared Homes.” These homes must have fire-resistant roofs, at least 5 feet of defensible space around them, and no wooden fences.
But there aren’t many legislative initiatives yet. Bills to give flood insurance near burn scars failed twice, putting communities like Ruidoso at risk. Many people in the area can’t afford insurance at a fair price, and they remain at risk from floods and wildfires.
The rising number of nonrenewals shows that we really need long-term solutions. If families don’t have reliable insurance, they could lose their homes and businesses in disasters that are more frequent and severe.
