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24 June 2024

What the EQC and FENZ changes may mean for you

In New Zealand, premiums for insurance policies may include a levy, which is a charge applied by the Government to help cover the cost of specific services.

For example, if you insure an asset that could be damaged by a fire, your premium will include the Fire and Emergency New Zealand (FENZ) levy (plus GST). Your insurer passes this levy payment onto FENZ.

If you are insuring a home, your premium will likely include an EQC levy, which gets passed on to the Earthquake Commission (EQC). This levy funds an insurance programme that provides limited natural hazards insurance for residential homes and land.

Both FENZ and EQC have announced changes from 1 July 2024.

Cyclone devastation

FENZ levy increases

From 1 July 2024, the Fire & Emergency New Zealand (FENZ) levy will increase. The new levy will apply when your insurance policy is renewed on or after 1 July 2024. If you have recently renewed your cover, the new levy will not apply until your renewal in 2025.

Here’s a summary of how the new FENZ levy applies to different policies:

Type of policy

Previous levy

New levy from 1 July 2024


10.6 cents per $100 insured

up to a maximum of $106.00

11.95 cents per $100 insured

up to a maximum of $119.50

Personal contents

10.6 cents per $100 insured

up to a maximum of $21.20

11.95 cents per $100 insured

up to a maximum of $23.90

Motor vehicles <3.5 tonne

$8.45 flat rate per vehicle

$9.53 flat rate per vehicle

All other property

10.6 cents per $100 insured

11.95 cents per $100 insured

More information about these levy rates can be found on the Fire and Emergency website

Important EQC updates

With the introduction of the Natural Hazards Act effective on 1 July 2024, the Earthquake Commission will be renamed the Natural Hazards Commission Toka Tū Ake (NH). The insurance scheme will be called NHCover, instead of EQCover.

Although the name is changing, the cover will largely remain the same, including an unchanged levy of $480 for cover up to $300,000 for a domestic dwelling.

If you have a residential building or land claim for natural hazard damage on or after 1 July 2024 the new Act will apply and an excess of $500 per dwelling is payable. You will also start to see references to the Natural Hazards Commission and Natural Hazards Insurance (NHI) levy on your insurances in future.

For the full details of changes refer to our client advisory, or the Natural Hazards Commission website.


Expert advice

If you have questions about how these changes may affect your policies or want to understand the impact on your specific situation, please contact your Gallagher broker.

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