The growing insurance gap leaves thousands of homeowners in New Mexico dangerously exposed. In a country increasingly at risk of climate-fed disasters, nearly 1 in 4 lack a tray insurance that raises alarms among experts.
What happens?
A Lendingtree report, summarized by Newsweek, revealed that 23.3% of housing owners in New Mexico – more than 133,000 households – are uninsured, almost double the national average.
The problem is particularly severe in areas that are prone to fire, where increasing premiums and cancellation of policies are becoming more common. In Albukerke, 15.2% of homes are uninsured – one of the highest percentages among major cities in the United States.
Experts from the insurance industry point to increasing premiums, worsening climate disasters and poverty as key engines of this increasing difference in coverage.
“Some people cannot receive insurance as their homes are considered too risky to insure themselves,” says Rob Bhat, a licensed Lendingtree insurance agent for Newsweek. And unlike car insurance, home insurance is not required by law.
Why does this lack of coverage refer to?
As the climate crisis is accelerated and the severity of extreme weather. In New Mexico, this means more frequent, longer and more intensive fires, hail and lightning floods -all of which can cause serious damage to homes and infrastructure.
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According to the National Meteorological Service, all 33 counties in the state are at risk of damage to storms that carry strong winds, hail, lightning and lightning floods. The capital of Santa Fe has almost 56% assessment of the risk of natural disasters.
Still, many inhabitants are completely unprotected. If a major disaster strike, uninsured housing owners may face catastrophic losses without a financial safety network.
“If you do not have insurance, the cost of recovery after a major disaster falls on you,” Bhatt said.
The weight is disproportionately higher for some communities, according to J. Tim Query, professor Emeritus of the State University of New Mexico.
“Studies have found that owners of color housing are disproportionately at risk [of being uninsured]With approximately 22 percent of indigenous Americans, 14 percent of Spanish eater and 11 percent of black homeowners who have no housing owners insurance, “the request told Newsweek.
With average premiums of about $ 2,05 a year in New Mexico, according to Bankrate – which is already above average for the country – some families are forced to cancel the coverage or rely on limited federal aid and inaccessible loans.
“Unfortunately, some people cannot afford housing owners’ insurance and have to make the difficult decision to cancel their policy,” Bhat added.
What is being done about it?
This problem is not unique to New Mexico. In the US, insurers withdraw from high -risk markets such as California and Florida, leaving more homeowners vulnerable.
State legislators are investigating decisions, including a proposal by New Mexico Governor Michel Lujan Grisham to set up a public fire insurance program that will work outside the existing paid plan for fair access to insurance requirements.
Regulators have also temporarily increased the maximum limit for a fair plan of $ 350,000 to $ 750,000 to help victims of the fire.
On a national scale, organizations such as the Institute for Catastrophic Loss Reduction are advocated for a stronger planning of sustainability and home modernization programs.
The longer term, the real progress will require the root cause: the burning of dirty energy sources. The more we rely on dirty energy, the more climate disasters we will encounter -and the more difficult it will be to insure our homes.
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