What is the EQC Levy?
The EQC levy is paid by all holders of house and/or contents fire insurance policies and contributes to EQC's earthquake and other natural disasters cover, which covers the first $100,000 (plus GST) of house damage, the first $20,000 (plus GST) of contents damage and damage to associated residential land, which is not covered by private insurers. The levy is paid at the time your private insurance is paid, and your insurer passes it on to EQC.
Earlier this year, the Government announced changes to the Earthquake Commission Levy as part of the 2017 budget. These changes mean that the EQC's premium will be raised to 20 cents per $100 of cover, from 15 cents per $100 of cover, from 1 November 2017.
Theses changes will assist in rebuilding the Natural Disaster Fund which has been depleted as EQC settles its liabilities following the Canterbury and Kaikoura earthquakes. It also ensures that EQC Cover continues to support high levels of insurance to you here in New Zealand and provide first loss insurance cover for residential dwelling, contents and land damage for New Zealand households.
This increase follows the Fire Services Tax increase which took effect in July 2017, these changes are industry wide, across all insurers and are set by the Government. We acknowledge the financial pressure these increases place on our clients and you can rely on us to continue to work hard to ensure you receive the best value for your insurance dollar.
If you have any questions about these changes please contact us on 07 889 4480 (Morrinsville) or 07 888 5550 (Matamata).