FEES AND GOVERNMENT LEVIES

Toka Tū Ake EQC is increasing the amount of cover they provide for natural disasters 

When you insure your home, a portion of your cover is provided by Toka Tū Ake EQC, a New Zealand Government entity. This means in the event of a natural disaster, EQC pays for your claim up to their maximum limit and we cover the damage claimed above that, up to your sum insured amount. 

You’ll still have the same insurance cover as you do now - all that’s changing is how much of your claim is covered by EQC, and how much is covered by us, in the event of a natural disaster.

From 1 October 2022:

• The maximum amount of cover EQC provides on home insurance policies increases from $150,000 to $300,000 per dwelling, plus GST. 
• The EQC levy, charged by EQC for this cover - is changing from a maximum of $300 to a new maximum of $480, plus GST.
• The EQC levy you pay on your home insurance will change, this new amount is in the premium section of your renewal notice.
• This change also applies to commercial and rural properties with residential buildings. 
• This nationwide change affects all insurers in New Zealand.

For more information on the EQC visit the Toka Tū Ake EQC website. 

If you are the owner of any separate self-contained dwelling or unit

If you have a property which includes self-contained dwellings or units, you will be charged an EQC levy on each one. However, you may not need to pay the maximum EQC levy on each one, depending on the sum insured.  

If you have Cover Option - Maxi and your separate self-contained dwelling or unit has a sum insured less than $300,000, contact your broker, adviser or contact us to ensure you’re paying the correct amount in EQC levies.

If you need help to determine your sum insured, you can use the independent Cordell Calculator tool, visit vero.co.nz/cordell.

If you have Cover Option - Flexi and any one of your separate self-contained units is less than 120m², please contact us so we can ensure you're not paying more EQC levies than you need to.

FAQs

What is EQC Cover?

The EQC covers damage to your home caused by natural disasters like earthquakes, volcanoes, 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. When you purchase your home insurance with us, you automatically acquire EQC cover.

Will I still have the same insurance cover?

You’ll still have the same insurance cover that you do currently – all that is changing is how much of the claim cost is covered by EQC and how much by us in the event of a natural disaster.

When will the changes apply to me?

The changes will apply to you from the date of your next renewal from the 1 October 2022.

What do these changes mean for my insurance cover?

Home insurance

You’ll still have the same home insurance cover that you have now. The difference is that in a natural disaster, the EQC will now cover up to the first $300,000 plus GST of your claim, and we will cover the rest up to your sum insured, subject to the policy terms and conditions. 

The EQC cover is paid for by a levy which all insurers collect on behalf of the Government. As of 1 October 2022, the EQC levy on your home insurance policy will change.

The calculation of your premium this year includes an adjustment for the changes made by the EQC, so you may find that your premium goes up or down depending on your home, location and how we calculate your property’s risk. 

For more information and a breakdown of your premium refer to your renewal notice. 

You can find  your policy wording here.

Commercial, farm or rural insurance (with a residential building)

You’ll have the same insurance cover for residential buildings that you have now, this will be treated the same way as home insurance, please refer to the home insurance FAQ above.

Why has my premium changed?

There are a number of factors that can influence your insurance premium. The calculation of your premium this year includes an adjustment for the changes made by the EQC, so you may find that your premium goes up or down depending on your home, location and how we calculate your property’s risk.