Earthquake Commission Legislation changes

Effective 1 July 2019, the New Zealand government has made changes to the Earthquake Commission Act to better meet the needs of New Zealanders in the case of a major event.

Visit the Earthquake Commission website

What does this mean?

EQC no longer involved in contents claims

Previously, the Earthquake Commission provided cover of up to $20,000 towards natural disaster claims for your contents. The Earthquake Commission will no longer offer contents cover and won’t be involved in contents claims. Instead, you’ll simply claim directly through your own contents insurance policy.

An increase from $100k to $150k on the EQC cap for building claims

The Earthquake Commission is increasing the cover it provides for natural disaster claims on your home from $100,000 to $150,000 (+ GST). You can still call your insurer in the first instance to confirm when and how to involve the Earthquake Commission.

You’ll have longer to notify the EQC regarding a claim

The Earthquake Commission is increasing the timeframe for lodging a natural disaster claim, from three months to two years. If an event does occur, it is always best if you notify your insurer or the EQC of damage as soon as possible, as in some cases delays could adversely impact your cover. The sooner we know, the sooner we can help.

EQC can share information collected about residential property claims

The EQC has advised it may now share information about your property claims with other parties who may require it, such as private insurers when they are acting on behalf of EQC to settle claims, or prospective buyers of the property. The Earthquake Commission will not be sharing your personal or financial information as they are still bound by the Privacy Act.

These are industry wide changes, applying to all insurance companies in New Zealand.

Frequently asked questions

You’ll find answers for many of your questions here. If you have a more specific question or want more detail, please contact us.

These changes build on lessons of recent event responses, including the Canterbury and Kaikoura earthquakes, and will assist the Earthquake Commission in the management of risk and recovery in New Zealand.

The Earthquake Commission legislation changes will take effect 1 July 2019, applying to new insurance policies as well as policies renewing on or after this date.

There are many factors that can influence your insurance premium each year, and you may notice some variation as a result of these changes. The EQC collects levies in relation to the amount of cover it provides, so when cover and levies change, this can affect the cost of your insurance, no matter which company you’re with.

While the EQC will no longer charge a levy on contents policies, your insurer will make up the $20,000 cover in the case of a natural disaster (previously covered by EQC). This will be reflected in your premium meaning it remains stable, rather than decreasing.

If you’re concerned about the cost of your insurance, there are things you can do – for example, removing optional benefits and/or opting for a higher excess will reduce your total premium. You’ll also pay less if you choose to pay annually.

The NZ Government has made these changes and they will apply to all insurance companies in New Zealand.

‘EQCover’ only applies to your Home and Contents insurance (including Landlord policies). Your Car policy, for example, will not be affected by these changes.

We have an obligation to protect our customers. Therefore, while we do offer flexibility and optional benefits surrounding accidental damage, we will not remove earthquake cover from your Home and Contents policies due to the extent of loss this can cause. Find out more about our policies.

Any existing claims will not be impacted by these changes and will continue to be managed under the Act in place at the time the event occurred. However, the improved information-sharing provisions will apply to all existing and future claims-related information held by EQC.

The official Government announcement for this change can be found on the Earthquake Commission website, along with some questions and answers.

When levies change, this can affect the cost of your insurance, no matter which provider you’re with. The good news is, because you’re with us, we do everything we can to make sure you’re only paying what you need to.

Concerned about the cost of your insurance?

Here are some ways to save on your premium

Consider how you pay – you can choose to pay your premium annually or spread the cost by fortnightly or monthly direct debit. You’ll pay less if you pay one annual lump sum.

Get a Multi Policy Discount – by having two or more policies with us. The more policies you have, the more discounts you’ll get.

Choose a higher excess – depending on what you think is manageable for your budget. There are different excess options available, should you need to make a claim, and generally the larger the excess, the smaller the premium.

Review your benefits – and remove those you don’t need anymore. For example;

If you have access to another vehicle, you may wish to remove the rental car option from your comprehensive car policy.
You may decide you don’t want the excess-free glass option for your home policy.
Excess-free hearing aid cover on your contents policy may no longer be necessary.

Check your home sum insured – use our online calculator to make sure you have the right level of cover to rebuild your property should you need to. If you have insured more than it would cost, you may be paying more than necessary.

Check your contents sum insured – use our online calculator to make sure you have the right level of cover to replace your contents should you need to. If you have downsized since setting up your policy, you may be paying more than necessary. It’s also important your sum insured is updated when you accumulate more items, so you’re not caught short in the event you need to claim.

Ensure your property is secure – For your contents, a security alarm will help you save on your premium.

Use your AA Membership – AA Members get a discount on insurance premiums with AA Insurance. The discount increases the longer you’ve been a Member.

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Thats what we're here for. Here are just some of the ways we're looking to offer you more and make your life easier.

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