A growing insurance gap is leaving thousands of New Mexico homeowners dangerously exposed. In a state increasingly threatened by climate-fueled disasters, nearly 1 in 4 lack insurance — a rate that's raising alarms among experts.
What's happening?
A report from LendingTree, summarized by Newsweek, revealed that 23.3% of New Mexico homeowners — more than 133,000 households — are uninsured, nearly double the national average.
The problem is especially severe in wildfire-prone areas, where rising premiums and policy cancellations are becoming more common. In Albuquerque, 15.2% of homes are uninsured — one of the highest rates among major U.S. cities.
Insurance industry experts point to rising premiums, worsening climate disasters, and poverty as key drivers of this growing gap in coverage.
"Some people can't get insurance because their homes are considered too risky to insure," said Rob Bhatt, a licensed insurance agent with LendingTree, per Newsweek. And unlike car insurance, home insurance is not required by law.
Why is this lack of coverage concerning?
As the climate crisis accelerates, so does the severity of extreme weather. In New Mexico, that means more frequent, longer, and more intense wildfires, hailstorms, and flash floods — all of which can cause serious damage to homes and infrastructure.
According to the National Weather Service, all 33 counties in the state are at risk of damaging storms that bring high winds, hail, lightning, and flash floods. The capital of Santa Fe has a nearly 56% natural disaster risk score.
Yet many residents are completely unprotected. Should a major disaster strike, uninsured homeowners could face catastrophic losses with no financial safety net.
"If you don't have insurance, the cost of rebuilding after a major disaster falls on you," Bhatt said.
The burden is disproportionately higher on some communities, according to J. Tim Query, a professor emeritus at New Mexico State University.
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Definitely 👍 "Studies found that homeowners of color are disproportionately at risk [of being uninsured], with an estimated 22 percent of Native American, 14 percent of Hispanic, and 11 percent of Black homeowners having no homeowners insurance," Query told Newsweek.
With average premiums of around $2,205 per year in New Mexico, according to Bankrate — which is already above the national average — some families are forced to cancel coverage or rely on limited federal aid and unaffordable loans.
"Sadly, some people can't afford homeowners insurance and have to make the difficult decision to cancel their policy," Bhatt added.
What's being done about it?
This problem isn't unique to New Mexico. Across the U.S., insurers are retreating from high-risk markets such as California and Florida, leaving more homeowners vulnerable.
State lawmakers are exploring solutions, including a proposal from New Mexico Gov. Michelle Lujan Grisham to create a public fire insurance program that would operate outside the existing Fair Access to Insurance Requirements plan.
Regulators have also temporarily increased the maximum coverage limit on FAIR plan policies from $350,000 to $750,000 to help wildfire victims rebuild.
Nationally, organizations such as the Institute for Catastrophic Loss Reduction are advocating for stronger resilience planning and home retrofitting programs.
Longer term, real progress will require tackling the root cause: the burning of dirty energy sources. The more we rely on dirty energy, the more climate disasters we'll face — and the harder it will be to insure our homes.
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