In 2022, being prepared for a wildfire is year-round in Santa Fe NM is beyond important, especially when your neighbor is the Santa Fe National Forest! This image from the spring of 2022 is of the Sangre de Cristo Mountain Range and Hermit Peak/Calf Canyon fire. This view is from my neighborhood, the Vista Encantada S/D. Although this fire was not in Santa Fe County or the City of Santa Fe, the fact it happened changed the risk factors for a wildfire in many Santa Fe neighborhoods. This has changed both the availability and cost of home hazard insurance. Unfortunately, having a conversation about the wildfire risk in a particular neighborhood was not on the minds of many buyers, sellers or their Realtors and Brokers in the past Hot Market. Why?
Until this past spring, being a fire-adapted community was not top of mind. However, it was for insurance companies! Due to the 2022 fires, New Mexico has the 13th highest home insurance rates. The top 12 are in prime hurricane or Tornado Alley areas. In New Mexico, home insurance is not regulated by the state as is health insurance. It is a very competitive market and may now come as sticker shock.
Home insurance has become not only location specific but also neighborhood specific in Santa Fe. Some people think wildfires are limited to the mountains or foothills. Not true. Often, if there is only one way in and one way out for traffic and fire engines or if the neighborhood has a high density of flammable vegetation, there is high wildland fire risk.
What can a prospective buyer do? First, do not overlook the insurance contingency in your purchase agreement. Get an insurance quote in writing before the contingency expires. Determine if there will be restrictions for second home or airbnb properties. Be proactive and learn more about Santa Fe's wildland urban community. Check the property address for any current climate risks on RiskFactor.com for flood, fire and heat factors. Ask your Realtor for local resources to make your future home fire safe.
What should homeowners do? First, stop being complacent as our community is not the same as it was even 10 years ago due to development, water resources and changes in our environment. Next, review your insurance policy with your agent and discuss ways to make your property more fire safe.
In New Mexico, a homeowner can only purchase a replacement cost policy and not a cash value one. As construction costs continue to be impacted by supply chain issues and inflation, the bottom line is insurance cost increase and many homeowners can be underinsured. Find your property's risk at RiskFactor.com and begin conversations with your neighbors to improve fire safety in your neighborhood. Learn to keep Santa Fe, New Mexico and your home and community wildfire free by getting involved in your neighborhood. It's that simple.
Now if you are sold on New Mexico and on the move, you can search for homes and find valuable real estate information, facts and news. Let's connect soon and maybe someday you live in as well as love Santa Fe.
Thank you for reading and/or commenting on this blog post by Emily Medvec.
Comments(5)