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Eligibility Standards

All real and tangible personal property at fixed locations in the State of New Mexico shall be eligible for placement under the procedures hereinafter established as follows:

1. No broader coverage than fire, extended coverage, and vandalism and malicious mischief will be provided, and
2. The property must be used for other than farm and manufacturing purposes.  ("Manufacturing Risks" means all properties used for the fabrication, processing, or assembly of products or components of products which (a) employ fifteen (15) persons or more, and/or (b) have an insurance value in excess of two hundred fifty thousand dollars ($250,000)).
3. The property must have characteristics of occupancy which do not violate any public policy as expressed or necessarily implied in State laws or local ordinances.  (Construction industries uniform building code, or the National Fire Protection Association Code No. 101, or both.)
4. The applicant, owner or financial institution must have an "insurable interest" in the property and that interest must be disclosed concurrent with the submission of the application to the Plan with sufficient clarity to substantiate that such a person would suffer an undetermined financial loss.
5. The applicant must not have any record of conviction involving arson laws.
6. Seasonal risks or unoccupied buildings will be considered on the basis that in consideration of the insured hazard of such lack of occupancy for short periods of time, an additional premium may be charged.
7. If an Executive Emergency Order declaring a Catastrophe is issued by the Governor, a builder’s risk policy may be issued by the Program by zip code for a one-year term and may be renewed by the Program for a maximum of five years from the date of the first declared Executive Emergency Order.
8. The applicant must have been denied coverage in the voluntary insurance market.
9. The applicant must submit an affidavit signed by the applicant and the applicant’s licensed insurance producer with the original application for insurance, and again at renewal, that the applicant’s licensed insurance producer has received a declination of binding insurance for the applicant’s property from the voluntary insurance market.
10. The applicant’s licensed insurance producer must retain evidence of a denial of an application for insurance for the applicant’s real and tangible personal property.

Vacancy as used in this paragraph shall include, but not be limited to the following:

• buildings which are devoid of most of the furniture, equipment, machinery, fixtures, or other items that are normally in a building of the same of similar use;  or
• a newly constructed building or structure which remains devoid of most of the furniture, equipment, machinery, fixtures or other items which are normally installed in a building of the same of similar use;  or
• a building or structure having no tenant for more than sixty days.  The fact that an individual occasionally inhabits or utilizes the building or the fact that maintenance, repairs, or upkeep are performed on the building, or the fact that the building is under lock and key, or the fact that the building is fenced, or patrolled by a watchman is not a consideration in determining whether the property is vacant;  or
• a building or structure under renovation devoid of a tenant is considered vacant.