Wildfires have been active in New Mexico recently, and four particular fires–Nogal Canyon, McBride, Hermit's Peak and Big Hole–have been declared national disasters by FEMA. In light of these declarations, the department is requesting that carriers take certain actions and reports to [email protected] concerning whether or not those measures will be taken by May 6 using the downloadable form found in the notice. A copy of the notice can be found here:
Carriers must affirmatively reach out to insureds in the affected areas to offer assistance as needed with any claims related to the wildfires.
When claims are related to smoke, soot, and ash, carriers must inspect the dwellings while the smoke, soot, and ash are visible. Carriers must also authorize repairs, cleaning, and replacement as necessary for hard surfaces, HVAC systems, attic insulation, and soft goods. If there is a question of the habitability of the residence after cleaning, carriers should offer independent testing at the carrier's expense. Additional living expenses should be covered until the testing and any subsequent necessary remediation are completed.
If the property is a total loss, carriers shall ensure that contents coverage provides options for streamlining documentation of inventory for insureds who are eligible for additional replacement cost benefits. Carriers shall also use forms that allow grouping by category, room, or itemization of large items and conduct individual interviews with insureds.
Claims from the designated disaster areas, as defined by FEMA, shall be considered one single fire loss with one deductible, even if multiple claims are filed by the same insured.
No adverse underwriting action should be taken based on a claim filed as a result of fires in the declared disaster areas.