Property Management

In New Mexico, a 'casualty clause' in a residential lease typically addresses:

ATenant's insurance requirements
BWhat happens if the property is substantially damaged or destroyed during the lease term✓ Correct
CTenant liability for guests
DLandlord's right to enter after a casualty

Explanation

A casualty clause specifies the parties' rights if the property is substantially damaged (fire, natural disaster)—typically allowing lease termination or rent abatement if the unit becomes uninhabitable.

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