INSURANCE COVERAGE FOR WILDFIRE & FLOODS

SB 154 requires New Mexico property insurance policies that cover wildfire damage to also include coverage for related flood damage, landslides, debris flows, mudflows, or similar events for five years after a wildfire is controlled. This directly affects homeowners and property owners in New Mexico whose insurance policies cover wildfire risks. The bill mandates that insurers automatically include these related flood events in coverage for policies issued on or after July 1, 2026. It does not change existing coverage for standalone flood events but extends wildfire policy protection to linked post-wildfire hazards. The law applies only to new policies after the effective date, not existing coverage.