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EQCover building cap and premium changes

The Government announced in September 2021 the EQCover residential building cap and associated premium (levy) will change from 1 October 2022.

These changes respond to increased residential repair costs and supports continued access to natural hazard insurance for homeowners in Aotearoa New Zealand.

There are no changes to EQCover limits for residential land.

The information on this page is also available in the EQCover Building Cap and Premium (Levy) Change [PDF, 302 KB] factsheet, and some Frequently Asked Questions (FAQs) are also below.  


EQCover building cap changes and timing
The maximum amount of EQCover available for your home will increase from $150,000 + GST to $300,000 + GST after 1 October 2022. This is known as the EQCover building cap.

The EQCover building cap will change for you when either:

  • Your existing insurance policy reaches its first anniversary date after 1 October 2022.

Or

  • You enter into a new insurance policy on or after 1 October 2022.

Before then, the current EQCover building cap will remain $150,000 + GST for your home, if you have an existing policy.

EQCover premium (levy) and excess changes

Your EQCover premium (levy) will change alongside the changes to your EQCover building cap to 16c per $100 of the EQCover amount, up to a maximum of $480 ($552 incl. GST).

Prior to this, your EQCover premium remains 20c per $100 of the EQCover amount, up to a maximum of $300 ($345 incl. GST).

An excess applies to EQCover residential building claims is the maximum excess is calculated at 1% of the maximum amount payable, including GST. Your EQCover excess (per dwelling) is a minimum of $200 (incl. GST) and will be a maximum of $3,450 incl. GST after the change and remain a maximum of $1,725 incl. GST before the change.

What EQCover building cap applies?

This table outlines the EQCover building cap that will likely apply. Subject to certain conditions, EQCover claims can be lodged up to two years after the date of natural disaster damage with your private insurer.  

Date of damage

Valid insurance policy status

EQCover building cap

Maximum EQCover excess*
Before 1 October 2022
 

 
Existing $150,000 + GST $1,725 incl. GST
After 1 October 2022   Existing

$150,000 + GST

(before first anniversary date of policy)

$1,725 incl. GST

$300,000 + GST

(after first anniversary date of policy)

$3,450 incl. GST
After 1 October 2022 New $300,000 + GST $3,450 incl. GST
*Calculated at 1% of the maximum EQCover building cap (per dwelling), including GST.

Anniversary date

Your anniversary date is the anniversary of the start of the period of cover under your insurance policy.

If your insurance policy has renewed previously, your anniversary date is the anniversary of the start of the cover under your first policy in the series of renewals.

Your anniversary date and renewal date may be different. This could be because:

  • Your policy renews more frequently than yearly (e.g. monthly); or
  • Your private insurer may have allocated a renewal date that is different to the anniversary of your policy.

EQCover claims before 1 October 2022

EQCover claims for events prior to 1 October 2022 retain the relevant EQCover cap for their policy at the time of natural disaster damage.

The EQCover building cap that applies to an EQCover claim depends on when the damage it relates to occurred. This means the maximum EQCover building cap is: 

  • $100,000 + GST for claims where the damage occurred before 1 July 2019,
  • $150,000 + GST for claims where the damage occurred between 1 July 2019 and 30 September 2022.

For claims that relate to damage on or after 1 October 2022, refer to the table under What EQCover building cap applies section above.

More information

Toka Tū Ake EQC is here to support you and answer any questions around these changes, as is your private insurer, who can answer questions about your insurance policy (e.g.  anniversary date).

Here are some resources that may be helpful:

Alternatively, call us on 0800 DAMAGE (0800 326 243) or email Toka Tū Ake EQC at info@eqc.govt.nz