What is EQCover?
EQCover is natural disaster insurance for residential homes and some areas of residential land. To pay for EQCover, the government sets the EQC levy, which makes up a portion of every New Zealand home insurance premium. Most people automatically have EQCover for your home and land if you have a current Home insurance policy.
EQCover insures your home and some areas of your residential land against loss or damage from earthquakes, natural landslips, volcanic eruptions, hydrothermal activity and tsunami. It also insures your residential land (within limits) against storm and flood damage. (Note, your Home insurance policy does not cover your land).
If your home is damaged by a natural disaster, the EQC (or your insurer acting on the EQC’s behalf) will pay the cost of repairs to the damage covered by EQCover, up to the maximum EQCover amount. If the cost of the damage is more than the maximum EQCover amount, your Home insurance policy will top up the cover for the repairs, up to your sum
How is EQCover changing?
From 1 October 2022, the maximum EQCover amount will increase from $150,000 (+GST) to $300,000 (+GST). The maximum EQC levy will increase from $300 (+GST) to $480 (+GST).
The levy change will be applied at your annual policy renewal that comes into effect between 1 October 2022 and 30 September 2023. It will affect home insurance* premiums from all New Zealand general insurers and will show as Earthquake Commission Levy under premium advice on your policy renewal documents.
It’s important to note, this EQC change doesn’t impact your sum insured amount, which is the maximum amount you’ll be paid if you experience a total loss, less your excess.
The maximum EQCover amount and levy applies per residential dwelling.