How NHCover works with your AA Insurance policy
Your home and landlord insurance premium includes an amount for natural hazard cover. This amount is called the Natural Hazards Insurance levy (NHI levy), and we collect this on behalf of the Natural Hazards Commission Toka Tū Ake (NHC) (formerly the Earthquake Commission (EQC)). By paying the NHI levy, you get access to Natural Hazards Cover (NHCover) if your home or certain areas of your land are damaged by a natural hazard.
We act as an agent for the NHC, meaning that we work on their behalf to assess, manage and settle any natural hazard claims. We’ll be your point of contact, let you know what’s covered, which excesses apply and manage your entire NHCover claim.
To better understand your NHCover, you can watch the NHC video below.
What natural hazards does this cover me for?
NHCover covers damage caused to your home by a natural hazard event, and some damage to the land your home is built on. This includes:
earthquakes
landslides (excluding gradual erosion)
volcanic activity
hydrothermal activity
tsunami
storm or flood (land cover only)
fire as a result of any of the above natural hazards
NHCover may also cover your home for imminent damage, which is damage that hasn’t happened yet, but is more likely than not to happen in the 12 months following a natural hazard event and as a direct result of the natural hazard event.
How much am I covered for?
Your home
If your home is damaged by a natural hazard, NHCover generally provides up to the first $345,000 (incl. GST) towards repairing or replacing your home and insured related buildings (such as sheds or garages). If the cost to repair or rebuild your home exceeds the maximum NHCover amount, your Home or Landlord Insurance Policy with us will cover the remaining repair or rebuild costs for natural hazard damage, up to the value of your sum insured.
Your land
NHC also provides cover for natural hazard damage to your land, however that cover is limited and subject to certain conditions. You are covered for:
the land under and up to 8m around your home and related buildings and structures
the land under your main access way, for example under your driveway, up to 60m from your home, for example under your driveway
some retaining walls, bridges and culverts, to a limit.
It’s important to be aware this cover is generally a contribution to repairs only, and is based on the value of your insured, damaged land. Your Home or Landlord Insurance Policy doesn’t cover damage to land, meaning we’re unable to provide any top up cover if this is needed.
If damage to your home that has been determined under NHCover as imminent damage, this won’t be covered by your Home or Landlord Insurance Policy with us.
To find out more about land cover, please visit the ‘About natural hazards cover’ webpage on the NHC website.
How much could my excess be for a natural hazard claim?
Depending on the parts of your property that have been damaged, you may need to pay up to five excesses:
The Natural Hazards Cover (NHCover) excess:
Dwelling claim – flat rate excess of $500.00 per dwelling (incl. GST)
Land claim – flat rate excess of $500.00 per dwelling (incl. GST)
AA Insurance excesses:
Your policy excess: you’ll pay this if the cost to repair or rebuild your home exceeds the NHC cap. This is the excess you chose when you purchased your policy and can be found on your policy schedule.
Natural hazard excess: you’ll need to pay a $5,000 excess if your natural hazard claim includes repairs for property or items not covered by the NHC. For example, driveways, fences and swimming pools are not covered by the NHC but are covered under your Home Insurance policy.
An unoccupied excess: if your owner-occupied or rental home is unoccupied for more than 60 days, there may be an additional long-term unoccupied excess applied to any claim you make on, or after, day 61. This excess is $1,000 and is found on your policy schedule.
When will I have to pay a natural hazard excess?
If you have a claim for parts of your property that have been damaged in a natural hazard but aren’t covered by the NHC, you’ll need to pay a natural hazard excess. This excess is paid in addition to your usual policy excess.
Under or over NHC cap*
NHC exempt items#
Natural Hazards Commission excess
AA Insurance policy excess/es
AA Insurance natural hazard excess
Under
Yes
✓
✓
✓
Under
No
✓
x
x
Over
Yes
✓
✓
✓
Over
No
✓
✓
x
NHC exempt items only
NHC exempt items only
x
✓
✓
* NHC provides cover for damage to your home up to a cap (maximum) of $345,000 (incl GST) and AA Insurance provides top-up cover over this amount if required.
# NHC exempt items include driveways, fences and swimming pools, which are not covered by the NHC but are covered under your AA Insurance Home Insurance policy.
What if I have an open EQCover claim?
The Natural Hazards Insurance Act 2023 (the NHI Act) replaced the Earthquake Commission Act 1993 (the EQC Act) on 1 July 2024. If you’ve made a claim for damages caused by a natural hazard event that happened before 1 July 2024, we’ll continue to work with you on the NHC’s behalf. Your EQCover claim will be delivered under the EQC Act. You can find more information on the NHC website.
What can I do to prepare for a natural hazard event?
Check out the NHC’s Natural Hazards Portal. This portal makes it easy to find information about natural hazard risks in your community. You can use the claims map to search a property’s address and it will show you whether there are any settled natural hazards cover claims.
Find out more about natural hazards and weather preparedness.
Find more information on how to prepare for a natural hazard.