Nearly two years ago, Albuquerque was struck by one of the largest hailstorms in its recent history. With the two-year anniversary of the July 2018 hailstorm quickly approaching, policyholders in New Mexico should be mindful to review their insurance policies for time limit considerations that could prevent them from pursuing delayed or denied insurance benefits for damages from the hailstorm.
While New Mexico requires that legal proceedings against an insurance company for failure to pay covered benefits must be brought within six years, New Mexico does allow an insurance company to contractually reduce this time within the insurance policy.1 This period typically begins after the date on which the direct physical loss or damage occurred. Even when a policy provision reduces a six-year statute of limitation to just one year, New Mexico courts will enforce the one-year contractual period.2
It is critical that policyholders review their insurance policy to determine the deadline to file a lawsuit. Failing to bring an action within this prescribed period can ultimately lead to the inability to seek legal recourse where an insurance company is failing to pay covered benefits.
If your New Mexico property damage claim has been improperly denied or you are unsure as to the limitation period to bring suit for your property damage claim, consider reaching out to Merlin Law Group to discuss the details of your claim and options available under the law.
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1 Electric Gin Co. v. Firemen’s Fund Ins. Co., 39 P.2d 1024 (1935); Turner v. New Brunswick Fire Ins. Co., 45 N.M. 126 (1941); Nez v. Forney, 109 N.M. 161, 163 (1989).
2 Turner v. New Brunswick Fire Ins. Co., 45 N.M. 126 (1941).