Have any questions?
Call 0800 80 24 24

Earthquake Commission (EQC) levy to rise from 1 February 2012

What is an EQC levy?

Under the personal home and contents insurance cover provided, all general insurers collect a levy on behalf of the Earthquake Commission (EQC). This levy enables the EQC to provide cover in the event of certain natural disasters.

The EQC, a Crown entity, provides natural disaster cover for purchasers of residential insurance. Through its Natural Disaster Fund, cover is provided for certain land damage, homes (to a maximum of $100,000 excluding GST) and contents (to a maximum of $20,000 excluding GST).

What's happening?

If you have home and/or contents insurance with us, please be aware that the Government has announced an increase to this levy from 1 February 2012.

The increase is intended to help rebuild the EQC’s Natural Disaster Fund following the Canterbury earthquakes and to ensure that the EQC has the capacity to meet its obligations, now and in the future.

How much is the increase?

From 1 February 2012, the EQC levy on personal home and/or contents insurance will increase from 5c to 15c per $100 of insurance cover.

The maximum total levy that a policy holder will pay per residence is $150 for home policies and $30 for contents policies, (excluding GST).

The increase will apply if you:

take out new personal home and/or contents policies on or after 1 February 2012 or
have an existing annual policy with a renewal date within the 12-month period from 1 February 2012.

What do I need to do?

The levy is applied automatically to your insurance premium and you’ll see this itemised on your policy renewal documents. If you have a direct debit set up it will be adjusted to take into account this increase. If you have an automatic payment set up, you will have to contact your bank and change your payment amount. Please read your policy renewal documents carefully so you understand what has changed.

For full details on the EQC and the cover it provides in the event of a natural disaster, go to www.eqc.govt.nz.

We understand the pressure that premium and levy increases can lead to. At the same time, the importance of being adequately insured has never been more apparent. If you have any questions or you wish to review your cover, please give us a call on 0800 80 24 24. We are here to help.