What does this mean?
These are industry wide changes, applying to all insurance companies in New Zealand.
Frequently asked questions
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.