State insurance officials, the Fair Plan governing committee and mitigation researchers described a fragile insurance market and competing proposals to restore and expand coverage for homeowners and businesses affected by recent wildfires.

Alice Kane, New Mexico superintendent of insurance, told the committee that cancellations and nonrenewals have surged in high wildfire‑risk areas and that the Fair Plan is now functioning as a market of last resort. Kane said regulators and the governing committee need “actuarially justified premium rates” and expertise on catastrophic risk when setting residual‑market rules.

Kendra Zacharias, chair of the Fair Plan governing committee, said the plan currently insures roughly 7,700 policyholders and that the committee briefly approved a temporary higher residential limit up to $750,000 (provisionally) before the approval lapsed; the committee and the superintendent were due to meet again on July 7 to consider permanent changes and other governance and mitigation measures.

Julie Rochman of the Insurance Institute for Business & Home Safety (IBHS) urged adoption of science‑based mitigation standards for existing homes. IBHS has updated its Wildfire Prepared Home standard and offers base and plus designation levels that focus on ember‑resistant vents, a five‑foot noncombustible zone around structures, roofing and other building features. “When a single family home is ignited by embers, there's a 90 percent chance of total loss,” Rochman said, stressing that retrofitting existing homes is central because new construction makes up a small share of the housing stock.

Miles Conway of the New Mexico Home Builders Association outlined retrofit cost implications for homeowners and warned of equity issues: many New Mexicans live in older housing stock that predates modern fire‑resilient construction and cannot afford upgrades that insurers might require for coverage discounts.

Superintendent Kane and governing committee members said the legislature’s appropriations — $10 million for mitigation grants and $2 million for a market study — are intended to help low‑income policyholders adopt mitigation measures and inform rate decisions. Committee members urged quick action: several lawmakers said they had constituents who remain uninsured or displaced after fires and need access to home and business insurance now.