New Mexico doubles FAIR Plan business cap
New Mexico insurance regulators doubled the commercial property coverage caps to 2 million through the state FAIR Plan for businesses unable to secure private-market policies. The increase from 1 million dollars addresses rising wildfire risks and reconstruction expenses affecting companies in affected regions. Superintendent Alice Kane said the adjustment helps more than 280 enrolled businesses and 7,200 residents while preparing for future applicants facing market constraints.
The decision follows a July action that permanently raised residential limits to 750,000 dollars from 350,000 dollars as part of broader safety net improvements. Senate Bill 81, proposed similar expansions earlier this year, remains stalled in the House Judiciary Committee despite passing the upper chamber in March. Industry groups warned that expanding the last resort program might discourage private carriers from reentering markets and increase state underwriting exposure. Travelers Group led commercial multiple peril insurers with a 13.65 percent market share in 2024, followed by Farmers Insurance Group at 6.65 percent.
