FAQ

What is EQCover?

EQCover is the natural disaster insurance available from the Earthquake Commission.

EQCover insures homes (including flats and holiday homes), personal belongings, and the land the homes are on.

It insures against earthquake, natural landslip, volcanic eruption, hydrothermal activity, tsunami; in the case of residential land, a storm or flood; or fire caused by any of these.

EQCover applies only to residential homes that are insured against fire.

Back to top

How do I get EQCover?

When you buy an insurance policy for your home or your personal belongings, your insurance company has to charge a disaster insurance premium, which it passes on to the Earthquake Commission. This gives you EQCover.

Back to top

How much cover do I get?

EQC insures your home on a replacement value basis, but there are limits to the amount you can claim (and on which you pay premiums).
These limits are the least of the following :

  • the amount for which you have insured your home on a replacement basis (i.e. the replacement sum insured); 
  • if your fire insurance policy does not have a replacement sum insured, an amount specified by you in the policy for EQCover on your home or holiday home (which cannot be less than $1,000 per square metre of floor area);
  • $100,000 (+ GST) per dwelling.

EQCover also insures your personal belongings and gives cover on the same basis as the fire insurance. So, if your personal belongings are insured against fire on a replacement basis, EQCover will also be on a replacement basis; but if they are insured on a less favourable basis than replacement value, then EQCover will be on the same basis.

The limit of EQCover for personal belongings is the lesser of: 

  • the amount for which your belongings are insured against fire; 
  • $20,000 (+ GST).

Back to top

What if I need more cover?

If you think EQCover is not enough for your property, talk to your insurance company who can give you additional cover.

Back to top

How much does EQCover cost?

The cost is worked out at 5 cents (+ GST) for every $100 insured. The most you can pay a year for one dwelling and its contents is $67.50 including GST. This will give you the maximum cover of $100,000 (+ GST) for your home and $20,000 (+ GST) for personal belongings.

Back to top

Are there excesses?

Yes. For a claim on a house the excess is 1% of the amount of the claim with a minimum of $200 per dwelling. For belongings, the excess is $200. For land, the excess is 10% of the amount of the claim, with a minimum of $500 per dwelling and a maximum of $5,000.

Back to top

Why is there an excess when the fire policy has a nil excess?

EQC is a separate entity from private sector insurers and as such has its own excess levels and other conditions which are detailed in the Earthquake Commission Act 1993.

Back to top

What about my section?

There is limited insurance cover on your section, mainly the land around the house, with some cover for the main accessway and underground services. An excess applies to claims on land.

Back to top

What about subsidence?

The definition of natural landslip excludes damage caused by, "movement of the ground due to below ground subsidence, soil expansion, soil shrinkage, soil compaction or erosion". Therefore, subsidence is not covered by the Earthquake Commission Act.

Back to top

Is all my property covered by EQCover?

Most, but not all, of it is. The property items not covered include motor vehicles, trailers, boats, swimming pools, fences, jewellery, money, works of art, securities and documents.

EQCover insures only direct damage. It does not, for example, extend to paying for temporary accommodation, as some insurance policies do.

Back to top

Does EQC cover everything my insurance company doesn't?

No. EQC covers the natural disaster perils defined within the Earthquake Commission Act. They are earthquake, natural landslip, volcanic eruption, hydrothermal activity, tsunami; in the case of residential land, a storm or flood; or fire caused by any of these.

Back to top

What about flats and apartments?

A "dwelling" is any self-contained premises being used as a home. The limit on the amount of EQCover you can have applies to each "dwelling". So a building can contain more than one dwelling, e.g. an apartment block, or a house with a self-contained granny flat. Each building is eligible for cover up to $100,000 (+GST) multiplied by the number of dwellings in the building.

Therefore buildings which include more than one dwelling can be insured for more than $100,000 (+GST). To get full EQCover, you must inform your insurance company of the number of dwellings in your building, otherwise you will only be able to claim up to $100,000 (+GST), regardless of how many different homes are in the one building.

If you live in a "dwelling" which you don't own, and you have personal belongings, you can get EQCover on those belongings.

Back to top

How are claims settled?

EQC sends a letter acknowledging the claim. We will usually appoint a representative to visit the scene of the loss and report back or, if the loss involves minor damage to home or contents, we will send the claimant a form to fill in. 

  • EQC contacts the claimant’s insurer to confirm that they have current insurance cover. This is done while the next steps are being taken. 
  • If necessary, the EQC representative will appoint a registered valuer to value the damage. EQC also obtains an estimate of repair costs. 
  • If the damage is severe or threatens the property, an engineer will be asked to report to EQC. 
  • Once EQC has received all the information about the claim, its representative will explain to the claimant the settlement for the claim. 
  • When the settlement is agreed, EQC will pay the claimant, the mortgagee or the claimant’s repairer the amount, in accordance with the terms of the agreement.

Back to top

How long will it take to settle my claim?

Home and contents claims
If it is straightforward, your home and contents claim should take up to one month to settle. It may take longer if expert advice is needed or if your claim is made at the time of a large natural disaster in New Zealand.

Land, retaining wall, bridge and culvert claims
Claims for land, retaining wall, culvert and bridge damage can be difficult to assess. The average time to settle claims is three months. However, the actual time varies according to the complexity of the damage and even weather conditions. We endeavour to have simple claims settled within two months.

Back to top

What does it mean if I have a 'Section 28' notice placed on my property title?

A “Section 28” notice is placed on a property title if EQCover has been cancelled or limited. EQC can only cancel or limit cover in specific circumstances as set out in the Third Schedule of the Earthquake Commission Act. EQC will advise, in writing, any person affected by the cancellation or limitation of EQCover and explain why it has done so. The notice continues to apply even if a property is sold.

In most circumstances EQCover can be reinstated and the property owner needs to contact EQC to find out what will have to be done, such as remedial works, in order to reinstate the Commission’s cover.

Back to top