Filing a homeowners or property insurance claim can be frustrating. Jumping into a claims process and dealing with insurance companies, adjusters, contractors, or attorneys immediately after your property is damaged can be a headache. Having your property damaged is already frustrating, and making an insurance claim and following it through to payment can be tedious. It’s not something you do every day, and it’s subject to nuanced and hard to understand state laws and regulations, as well as complicated policy terms. The good news, through, is that New Mexico has strong policyholder protections built into the insurance law, and the insurance regulations provide strict deadlines and requirements for the investigation and payment of property insurance claims. If policyholders are aware of these deadlines and rules, and are proactive with respect to their claims, they should have a smooth, fast, efficient, and fair insurance claim process.
These resources are built to help policyholders — and all the stakeholders who work with them, like adjusters, attorneys, contractors, and consultants. These resources will help you file your claim correctly, document your losses thoroughly, and know when and how to followup through the claim process. And, if necessary, how and when to escalate and resolve the claim.
Claim Filing Deadline
Reasonable time
The timeline by which to make a property insurance claim in New Mexico is set by the policy documents. However, it is always a good idea to make a claim as soon as reasonably possible given the circumstances.
Initial Response Time
Reasonably promptly
New Mexico requires insurance companies to acknowledge property insurance claims and act upon them reasonably promptly
Claim Decision Time
Reasonable time
New Mexico does not set out any strict deadline for the acceptance or denial of a property insurance claim, but instead requires that an insurer must affirm or deny coverage of claims by insureds within a reasonable time after proof of loss requirements under the policy have been completed and submitted by the claimant.
Lawsuit Deadline
6 years – but can be, and usually is, shortened by policy
While New Mexico statutes require that any action to recover payment under an insurance policy must be brought within 6 years of the loss, New Mexico allows property insurance policies to contain language limiting the time to file suit to no less than 1 year from the date the of loss.
State Department
New Mexico Department of Insurance
1120 Paseo De Peralta
Santa Fe, NM 87501
(855) 427-5674
New Mexico Office of the Superintendent of Insurance website
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New Mexico Insurance Claim Guide
Filing: New Mexico Insurance Claim FAQs
All insurance claims start by informing your insurance company of the loss. You want to do this as soon as possible. There are many ways to notify the insurance company. It’s most important that you keep a record of notifying them. Here are frequently asked questions about how to best “file your claim” with the insurance company in New Mexico and the state regulations that will help (or hurt) you!
In order to initiate a claim under a property insurance policy in New Mexico, the policyholder must inform their insurance carrier of the loss, some general facts surrounding the loss, and that they are making a claim. In many cases, an insurance company will call this communication a first notice of loss, or “FNOL”.
Most insurance companies provide multiple ways to contact them after a loss to begin the claims process, these usually include:
a. Phone call (a number is usually provided on the insurance company’s website);
b. Online portal – many insurance companies have an online form to notify the claims department of a loss, this may even be through a mobile app;
c. Your agent – many insurance companies even have a different section of their website or phone number for an agent to inform them of a policy-holder’s loss;
d. Online software as a virtual assistant.
While it is easy and quick to start a claim, claimants need to continue to follow-up and provide more information. In many cases, the insurer will require more information and supporting documentation, including specific forms, to actually process and adjust the claim. It is important to make sure that these forms are completed promptly, so the claim can keep moving forward.
1. Promptly inform your insurance carrier of the loss (see above);
2. As soon as possible begin to mitigate the damage – protect the property and secure it against further damage as soon as it is safe and possible to do so.
3. Cooperate with your insurance company and communicate with them (and keep copies of all correspondence).
4. Make your property available for inspection as soon as it is safe and possible to do so.
5. Prepare supporting documents for your claim including:
– Inventory list;
– Description of damages;
– Photographs and/or videos of the damage;
– Receipts; etc.
Reporting Deadline: New Mexico insurance law does not set forth any universally applicable deadline by which a property insurance claim must be made. This means that the deadline for informing the insurer of a claim is set by the policy itself. It is important to be familiar with the insurance policy so that deadlines are not missed. Most insurance policies require that a claim be made “immediately” after the loss, or “promptly” or within a “reasonable time.”
It is always best practice to inform an insurance company of the losses sustained and that a claim is being made as soon as it is reasonably possible to do so after the damage is incurred and a determination that a claim will be filed is made. While it is never a good idea to delay in providing the insurance company with information once it has been determined that a claim will be filed, the actual meaning of “immediate” or “prompt” or “reasonable” with respect to making a claim depends on the circumstances – if a home is completely destroyed by a storm and the phones, internet, and power are off, it may take a little longer to make the claim.
Be sure to check the language of the insurance policy to determine the notification or reporting deadlines. But, in any event, remember that best practice is to provide notice of the loss and claim to the insurer as soon as possible.
Followup: Document Your New Mexico Insurance Claim FAQs
Notifying the insurance company about a loss is just the first step. The most important work comes next: documenting your loss and following up with the carrier. New Mexico has enacted many regulations to guarantee that the insurance company acts moves promptly and fairly to investigate and pay your claim…but you need to understand these regulations and know the appropriate timeframes. That means communicating with the insurance company early and often and putting them on the clock. These FAQs will let you know the applicable standards.
Documentation Deadline: New Mexico does not set a specific deadline to provide support for a claim, including a proof of loss, by statute, but instead allows this timeline to be set by the policy itself. In many cases, New Mexico insurance policies require that a proof of loss document be provided within 30 or 60 days of either the date of loss itself, or when the proof of loss was requested by the insurance company – it is important to read the policy thoroughly to determine when the proof of loss should be provided, these dates can vary significantly.
While the deadline for submitting a proof of loss may be extended by agreement between the parties if circumstances make it difficult or impossible for the policyholder to comply with the deadline as set forth by the policy, note, however, that no matter the actual deadline for providing supporting documentation, it is always best practice to provide a proof of loss document and support of the claim as soon as possible (while noting that the document only presents the knowledge at the time and may be amended or updated).
Some timelines for New Mexico insurance companies’ final settlement of the claim start to run from their receipt of a sufficient proof of loss, so getting one to the insurance company quickly is a good way to get the claim process moving along, and to get your payment.
New Mexico has adopted laws governing unfair claims settlement practices to protect policyholders and to provide a streamlined timeline for claims to be handled, and these laws provide deadlines for the acknowledgment and investigation of claims. However, despite these protections, New Mexico does not set strict deadlines, and instead uses words like “promptly” and “reasonable.”
Deadlines for Acknowledgment: New Mexico requires insurance companies to acknowledge property insurance claims and act upon them reasonably promptly after receipt of communications from a claimant regarding a claim under the policy.
Deadlines for Investigation: New Mexico insurers are also required to “adopt and implement reasonable standards for the prompt investigation and processing” of a policyholder’s claim arising under their policies.
New Mexico insurers are also required to respond to any communication from the insured policyholder that reasonably indicates a response is expected in a reasonably prompt manner.
Resolving: Get Paid & Protect Your Rights On New Mexico Insurance Claim FAQs
Ultimately, the insurance claim must be approved and paid (or, unfortunately, denied). Getting to this step and getting the money has a lot of logistics…and that is if everything goes well. If all or any portion of the claim is debated (which is really common) then you need to escalate it. In either event, Alabama has regulations governing these timelines to guide the way. These FAQs show what is supposed to happen.
Deadline for Acceptance/Denial: New Mexico does not set out any strict deadline for the acceptance or denial of a property insurance claim, but instead requires that an insurer must affirm or deny coverage of claims by insureds within a reasonable time after proof of loss requirements under the policy have been completed and submitted by the claimant.
Deadline for Payment: New Mexico requires that insurance companies must attempt in good faith to effectuate prompt, fair and equitable settlements of an insured’s claims in which liability has become reasonably clear.
New Mexico insurance law sets forth many specific acts that, if undertaken by an insurance company, constitute unfair practices in settling claims. If an insurance company is determined to be in violation of the unfair claims practices requirements, the policyholder (or anyone damaged by the violation) is granted a a statutory cause of action to bring a suit in district court to recover the actual damages. Attorneys’ fees may also be awarded to the prevailing party.
A policyholder may file suit against the insurer for bad faith for an unreasonable denial of claim or payment of benefits. In order to be successful in such a suit, the policyholder must show:
(1) A frivolous or unfounded failure by the insurer to pay a claim; or
(2) A frivolous or unfounded reason by the insurer for denying the claim or delaying payment of the claim.
Deadlines to File Suit: While New Mexico statutes require that any action to recover payment under an insurance policy must be brought within 6 years of the loss, New Mexico allows property insurance policies to contain language limiting the time to file suit to no less than 1 year from the date the of loss.
Note, however, that this deadline is limited to contractual claims pursuant to the insurance contract. Claims against the insurer for bad faith or unfair claims settlement practices are not subject to a time limitation set forth by the policy.
