EQC and Fire and Emergency levies explained
Your Tower policy premium includes levies we collect on behalf of the government. We break these down and explain any recent changes and rate increases.
What is a levy?
Tower collects levies (or fees) on certain insurance premiums on behalf of the government for certain natural disasters and for fire and emergency services. For more details, see below.
Earthquake Commission (Toka Tū Ake EQC) levy
The EQC levy funds a government insurance (called EQCover) and it's there to support all New Zealanders if there’s certain natural disasters. Everyone pays the levy through their house and landlord insurance, so Toka Tū Ake EQC can be ready to help if something major happens.
Fire & Emergency New Zealand (FENZ) levy
The FENZ levy is paid through Tower car (comprehensive and third party, fire and theft), contents, house and landlord insurance – with a few exceptions such as third party car insurance and business liability insurance. This levy contributes to New Zealand's fire and emergency services.
Who are the EQC?
The Earthquake Commission – Toka Tū Ake (or EQC) is government insurance set up to support New Zealanders in the event of certain natural disasters.
If your home or land is damaged due to an earthquake, landslip, volcano, tsunami, or hydrothermal activity, the EQC will pay out a certain amount to help you rebuild or repair it. Private insurers, like Tower, pay the rest of any claim for damage to your home.
The EQC is funded through a government levy that’s collected through house and landlord insurance premiums and passed on directly to the EQC.
How much is the levy?
If your Tower policy provides cover for fire damage, you’ll see a FENZ levy amount listed in your renewal invoice. This is sent to you with your renewal pack.
The levy is passed on directly to Fire and Emergency New Zealand to help fund the services they provide. How much you pay depends on the product and asset that you have. Don’t worry, we’ll work out the calculations for you ahead of your renewal.
If you’d like any more information about the FENZ levy visit the Fire and Emergency New Zealand website.