New Mexico lawmaker questions industry group leaders over homeowners’ insurance non-renewals

A New Mexico state lawmaker whose district continues reeling from the largest wildfire in state history questioned industry leaders Tuesday about the increasing rate at which insurers refuse to renew homeowners’ policies, particularly in fire-prone areas. 

State Rep. Anita Gonzales (D-Las Vegas), whose House District 70 includes much of the 2022 Hermits Peak-Calf Canyon Fire burn scar, asked a panel of insurance industry leaders speaking before the interim legislative Economic and Rural Development and Policy Committee about recent insurance trends in the state, including the highest-ever rate of insurance companies opting not to renew policies. 

National insurers opted not to renew more than 6,200 homeowners’ insurance policies in New Mexico in 2025, according to recent figures the state’s Office of the Superintendent of Insurance provided. That marks the highest annual number of non-renewals in state history, and represents a near-tripling of non-renewals since 2021. 

“If you have a total exodus of the industry in some of these communities, how are we able to then rebuild?” Gonzales asked.

Julie A. Rochman, a former CEO of an insurance industry research organization, told Gonzales national insurance companies may “back away” from high-risk properties as they grapple with global economic forces, including increasing construction costs for fire-damaged properties and rising premiums insurance companies themselves face from global reinsurance companies. 

Federal regulations on property and casualty insurers also limit how companies can invest premium dollars, Rochman noted, which reduces the funds insurers have to cover widespread losses. And the insurance companies could run afoul of state regulations if they irresponsibly underwrite insurance policies in areas that are on the cusp of a natural disaster. 

“Carriers will back away because they may have so much risk already on their books in New Mexico that they cannot take more and still support the ability to pay any and all claims as needed,” Rochman said. “I think the industry is constantly looking for that balancing act, but we can’t overextend ourselves to write property that we shouldn’t be writing.”

New Mexico insurers refused to renew policies for record number of homes in 2025, official says

In response, Gonzales urged insurance companies to “find some middle ground to work towards” due to the “very troubling” increase in non-renewals. 

Rochman also chairs the state’s Fair Access to Insurance Requirement Plan board, which offers insurance to those who cannot find insurance on the private market. 

In 2025, the Legislature gave $10 million to the OSI to help homeowners with FAIR Plan coverage mitigate their homes against wildfire risk, including measures like clearing trees from near structures, installing screens on vents and making roofs more flame resistant.

Rochman said Tuesday that homeowners’ “sweat equity” in mitigating against wildfire risk, particularly creating a 5-foot buffer around homes of flammable materials, remains the single most important step they can take to improve the insurance market statewide and also protect their homes.