INSURANCE PAYMENT OF DEPRECIATION

SB 55 would require New Mexico residential property insurance policies to cover the full cost to repair or replace damaged property without reducing payments for depreciation. This directly affects homeowners, ensuring they receive 100% of the replacement cost (not the depreciated value) after a claim, with reasonable overhead allowed if they self-repair. The bill mandates insurers pay the full replacement cost upon completion of repairs, rather than a reduced amount based on the property's age or wear.