New Mexico Requires Replacement Cost on Residential Property Insurance

The New Mexico Office of Superintendent of Insurance published a Bulletin on February 20, 2024 addressed to all insurance companies that have issued property insurance policies in the state. The Bulletin reminds insurers that all residential property insurance policies must provide coverage for the cost to repair or replace damaged property without deduction for depreciation, in accordance with New Mexico Statutes. 

New Mexico Statutes Annotated 1978 59A-18-17 states, “Insurance coverage provided in residential property insurance policies shall provide coverage for the cost to repair or replace without deduction for depreciation. If the insured elects to effectuate repairs to the property by the insured’s own self, a reasonable overhead expense shall be allowed.”