Wildfire risk in Northern New Mexico is reshaping the housing market. The Taos News reported that insurance companies are raising premiums or pulling out entirely, leaving homeowners in Taos County scrambling for coverage. 

Rising construction costs and new risk-assessment models have triggered the issue. It marks a shift toward algorithm-based risk evaluations, especially in regions prone to fire. 

What’s happening?

New Mexico joins Colorado on a growing list of states where wildfire risk is reshaping the insurance landscape.

“Yes, rates are going up,” Melissa Robertson, chief of the Property and Casualty Bureau at the New Mexico Office of the Superintendent of Insurance, told the News. 

Insurers are using satellite tools and updated cost models to decide which homes qualify for coverage — and which don’t. Homes that qualified for $5,000 policies a few years ago may now cost as much as $18,000 to insure.

Agents said even longtime customers have lost coverage based on satellite ratings that flag heavy tree cover, single-road access, and limited fire response nearby. 

The state’s Fair Access to Insurance Requirements Plan still covers some homes, but it only applies to fire, wind, theft, hail, and vandalism coverage. 

Why is this concerning?

Pollution from human activity, namely the burning of dirty fuels, is driving hotter, drier conditions that make fire seasons longer and more destructive. 

Insurance companies are reacting by tightening thresholds, focusing on how close homes are to trees, roads, and fire stations. This shift has put millions of homes at risk of losing coverage or becoming too expensive to insure.

Buyers are now weighing insurance costs alongside mortgages and adjusting where to buy because of it. Fire risk isn’t just a critical environmental issue — it’s now a key factor in where people can afford to live. 

What’s being done about it?

New Mexico Senate Bill 33 created a wildfire preparedness fund and emphasized new standards for defensible space, including removing flammable materials within 5 feet of a home. 

Mitigation can lower insurance rates and reduce the chance of fire damage by up to 60%, the News reported. Some communities, including San Cristobal, are already applying these practices.

Local efforts — from brush cleaning to Firewise programs — are also central to keeping homes insurable. 

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