As a result of some of New Zealand’s recent natural disasters, the Earthquake Commission (EQC), the Insurance Council of NZ – Te Kāhui Inihua o Aotearoa (ICNZ) and several NZ insurers have worked together to create a new model for managing natural disaster claims.
The National Disaster Response Model (NDRM) was first piloted after the 2016 Kaikōura earthquake. The partnership and agreement between EQC and private insurers was created to simplify the claim making process, making natural disaster claims easier by providing a single point of contact for customers.
Whilst large events such as earthquakes are the first thing that springs to mind when we think of EQC cover, many other claims are received throughout the year outside of major earthquakes. Examples include isolated landslips and flood damage to land.
What does this mean for AA Insurance customers?
This new change means that AA Insurance will act as an agent of EQC. Anyone with an AA Insurance Home or Landlord Insurance policy, whose home or land is damaged in a natural disaster will have one point of contact at AA Insurance and we will manage the entire claim. We will now assess, manage and pay EQC claims for our customers. Once the claim has been settled and all claim-related payments have been made to our customers, AA Insurance will then recover any applicable costs from EQC.
There is no change to the cost of the EQCover levy. The maximum EQC levy per Home or Landlord Insurance Policy is $300 (+ GST) per annum. By paying your Home or Landlord Insurance premium, you automatically pay the EQC levy and gain EQCover. This provides a maximum cover for residential buildings of $172,500 (incl GST).
What does EQC Cover?
EQC and their EQCover covers damage to your home caused by natural disasters like earthquakes, volcanos, tsunamis, landslips and geothermal events, as well as fire resulting from any of these. It also covers damage to your land caused by a natural disaster, storm or flood.
The maximum cover through the EQC for your building is $172,500 (incl GST). If you need more cover than this, your Home or Landlord Insurance Policy will top up this amount, up to your Sum Insured. For multi-unit buildings that may be insured individually with more than one insurer, a lead insurer will be appointed for customers to liaise with.
Now’s a great time to review your insurance - we’re happy to help to ensure your cover is right for you. We recommend checking your details are all up to date, such as your sum insured, the size and materials of your home.
If you have any questions about your insurance or would like to find out more about natural disaster cover, don’t hesitate to contact us. We’re open from 8am to 8pm weekdays and from 8am to 6pm weekends and public holidays.