What is Natural Hazards Commission (NHC) cover?
The Natural Hazards Commission (NHC) was previously known as the Earthquake Commission (EQC). It changed in July 2024. NHC cover is a type of government-provided insurance that helps with the cost of repairing or replacing residential homes that are damaged by:
- Earthquake
- Tsunami
- Landslip
- Volcanic eruption
- Hydrothermal activity
The NHC is a government agency that operates under the Natural Hazards Insurance Act 2023, and you receive the NHC cover automatically when you purchase a house insurance policy. If a natural disaster damages your home, NHC will help to pay for the cost and your home insurer, such as initio, will pay the rest up to your selected sum insured.
IMPORTANT INFORMATION
It’s worth noting that all New Zealand homeowners were affected by the Government’s EQC changes on 1 October 2022. The figures below are based on those changes.
- NHC cover: The cap is $345,000 (incl gst). This cover is provided as part of your home insurance with us. We pay when the natural disaster damage exceeds this cap.
- NHC levy: The relevant levy is $552 per year (incl gst). Your home insurance spend includes an NHC levy that is collected on behalf of the NHC.
How does NHC cover work?
Part of your total home insurance cost goes to the NHC as a levy. We collect this levy and pass it on to the NHC. This money is then pooled together by the NHC to create a sort of war chest in case our fellow Kiwi’s need help following a disaster. The NHC also uses some of this money to buy additional cover (known as re-insurance) in case of a major catastrophe affecting an entire region.
What cover do I get?
You receive up to $345,000 inc gst of cover per dwelling unit.
How much does the levy cost me?
It depends on your sum insured but for the vast majority of homeowners, the annual cost is $552 incl gst ($46 per month).
If you have a home or unit with lower sum insured the levy increase will not be as much, and you may even see a reduction in NHC levy.
Does the NHC levy change by region?
No, it’s a flat charge regardless of where your home is. So Auckland homeowners pay the same as Wellington homeowners. The cover and the levy does not take account of regional natural disaster risk.
Am I covered for damage to land?
Yes, the NHC provides cover for land. There are certain conditions for coverage and a special land excess applies. See the NHC’s page on residential land cover.