@Sacha LaCoss
This is what the Uniform Owner Resident Relations Act (UORRA) of New Mexico states to explain what actions to take in this situation.
47-8-31 Resident rights following fire or casualty
A. If the dwelling unit or premises are damaged or destroyed by fire or casualty to an extent that enjoyment of the dwelling unit is substantially impaired, the resident may:
(1) Vacate the premises and notify the owner in writing within seven days thereafter of his intention to terminate the rental agreement, in which case the rental agreement terminates as of the date of vacating; or
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(2) If continued occupancy is lawful, vacate any part of the dwelling unit rendered unusable by the fire or casualty, in which case the resident’s liability for rent is reduced in proportion to the diminution in the fair rental value of the dwelling unit.
B. If the rental agreement is terminated, the owner shall return the balance, if any, [of] prepaid rent and deposits recoverable under Section 18 [47- 8-18 NMSA 1978] of the Uniform Owner-Resident Relations Act. Account- ing for rent, in the event of termination or apportionment, is to occur as of the date of the vacation. Notwithstanding the provisions of this section, the resident is responsible for damage caused by his negligence.