New Mexico Superintendent of Insurance Takes Issue with Ruling on Living Expenses

A Santa Fe District Court ruling that State Farm and Casualty Co. does not have to comply with a provision of the New Mexico Superintendent of Insurance emergency order for insurers to pay $5,000 in living expenses to policyholders forced to evacuate due to the South Fork and Salt Fires if their policy covered additional living expenses.

A lightning strike caused the South Fork Fire, which destroyed or damaged more than 1,400 structures in New Mexico. The South Fork Fire was first reported June 17 on the Mescalero Apache Reservation and forced the evacuation of the Village of Ruidoso.

Related: Report: Over 1,000 Properties Affected by New Mexico Wildfires to Cost $370M

“The Office of Superintendent of Insurance (OSI) respectfully disagrees with today’s ruling. The circumstances on the ground in Ruidoso were and continue to be dire,” New Mexico Superintendent of Insurance Alice T. Kane said in a statement. “The New Mexico State Legislature delegated emergency powers to OSI to protect policyholders so that this office could be responsive to natural disasters. When an insurance policy covers additional living expenses (ALEs), evacuees who had paid insurance premiums for decades needed help accessing basic necessities like a place to stay and meals, which ALEs cover. Evacuees didn’t need funds to cover these kinds of expenses weeks or months later – they needed them immediately, when forced to evacuate and leave behind nearly all their belongings to escape to safety.”

The OSI said it is reviewing its legal options.

Topics Mexico New Mexico