Continuing my state-by-state review of mandatory condominium insurance requirements, this post will look at New Mexico—The Land of Enchantment.

Laws governing condominium association insurance requirements in New Mexico can be found in the New Mexico Statutes §47-7C-13.

The statute states, in part:

A. Commencing not later than the time of the first conveyance of a unit to a person other than a declarant, the association shall maintain, to the extent reasonably available:

1. Property insurance on the common elements insuring against all risks of direct physical loss commonly insured against or, in the case of a conversion building, against fire and extended coverage perils. The total amount of insurance after application of any deductibles shall be not less than eighty percent of the actual cash value of the insured property at the time the insurance is purchased and at each renewal date, exclusive of land, excavations, foundations and other items normally excluded from property policies; and

2. Liability insurance, including medical payments insurance, in an amount determined by the executive board but not less than any amount specified in the declaration, covering all occurrences commonly insured against for death, bodily injury and property damage arising out of or in connection with the use, ownership or maintenance of the common elements.

B. In the case of a building containing horizontal boundaries described in the declaration, the insurance maintained under Paragraph (1) of subsection A of this section, to the extent reasonably available, shall include the units, but need not include improvements and betterments install by unit owners.

New Mexico’s condominium association insurance requirements are similar to those of many other states. It is important for unit owners to note that while associations of buildings containing horizontal boundaries must maintain insurance on the units, they are not required to cover improvements and betterments installed by the unit owners. Unit owners should consider purchasing additional insurance to provide coverage for any improvements and betterments and the unit owners’ personal property.