What is the EQC levy?
The Earthquake Commission Levy (EQC) contributes to earthquake and other natural disaster cover. If you need to make a claim, this 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 Tower Insurance.
Why did the EQC levy increase?
The EQC has two sources of income:
- investment income from money held in the Natural Disaster Fund.
The current EQC premium rate of 15 cents is below the long-term breakeven costs of running the scheme. Increasing the levies will help rebuild the Natural Disaster Fund which has been depleted as EQC settles its claims from Canterbury and Kaikoura earthquakes.
The government decided to increase the EQC Levy from 1 November 2017. From this date there was be an increase in your levy which will apply to your premium.
How much did EQC levy increase?
The EQC levy increased from 15c to 20c per $100 of insurance cover, for all house and contents policies. The levy is capped at a maximum of $240 a year, up from the current maximum of $180. The table below will help you understand the increases. You’ll see the new EQC Levy amount listed in your renewal certificate. This was sent to you with your renewal pack.