N.M. Admin. Code § 13.13.2.8

Current through Register Vol. 36, No. 1, January 14, 2025

Section 13.13.2.8 - RESIDENTIAL PROPERTY INSURANCE COVERAGE REQUIREMENTS

A. Residential property insurance policies shall be provided on a replacement cost basis.

B. Residential property insurance policy provisions may limit an authorized insurer's liability for loss due to a single occurrence to less than replacement cost of a residence, provided the authorized insurer's liability shall not be reduced pursuant to a coinsurance requirement. A residential property insurance policy that limits an authorized insurer's liability for loss due to a single occurrence to less than replacement cost of a residence, but does not reduce the authorized insurer's liability pursuant to a coinsurance requirement does not violate the provisions of Section 59A-18-17C NMSA 1978, and shall not be construed to require that losses be paid in excess of stated policy limits.

C. An insured may elect to effectuate repairs to a residence himself or herself under a residential property insurance policy. In such a case, claims settlement shall provide for replacement cost.

D. This rule does not supersede other loss settlement limitations, conditions, exclusions or other provisions contained in the residential property insurance policy.

N.M. Admin. Code § 13.13.2.8

9/15/93; Recompiled 11/30/01