Government levies explained
Your Tower policy may include one or more government levies. Here's what they are and how they work.
What's a levy?
A levy is a fee that all insurance companies are required by the government to collect and pass onto other organisations. There are two key levies that you may see included in your insurance premiums.
Your Natural Hazards Insurance (NHI) levy helps fund insurance for houses and land in the event of certain natural hazards.
The Natural Hazards Commission Toka Tū Ake (NHC) provides cover for your home or holiday home against damage caused by a natural hazard including earthquakes, landslides, volcanic activity, hydrothermal activity, tsunamis, and natural hazard fires that occur because of any of these hazards. Generally, the first $300,000 plus GST towards repairing or replacing your home is provided by the NHC.
Private insurers, like Tower, pay the rest of any claim for any damage to your home up to the amount agreed in your insurance policy. It's a good idea to regularly check your house insurance cover, and ensure it is enough to rebuild your home.
The NHC also provides cover for your land, covering the costs to repair damage caused by the natural hazards listed above as well as by storms and floods. The land cover is capped, so it's important to understand the limits of this cover. These can be found in more detail here.
How much does it cost?
The NHI levy is currently set at 16c per $100 insured, up to $300,000 plus GST. So, the maximum you'll pay is $480 plus GST per year.
Read more about the Natural Hazards Commission Toka Tū Ake.
Your FENZ levy helps to fund Fire and Emergency New Zealand. All insurance policies that include cover for fire damage will include this levy.
There are different amounts we're required to levy for different things, such as house, contents, or car insurance. You'll find your specific levy clearly outlined in your invoice.
How much does it cost?
The exact amount depends on the value of what you have insured. But the maximum annual levy is $119.50 plus GST for residential property, $23.90 for residential contents, and $9.53 plus GST for vehicles up to 3.5 tonnes.
Levy FAQs
No, these levies are set by the government and are part of the law. All insurance companies are required to collect them - and everyone with applicable insurance policies needs to make their contribution.
Yes, from time to time, the government may make changes to the levies they collect. For example, the EQC levies (now known as the NHI levies) changed in 2022 and the Fire and Emergency New Zealand levy increased by just over 10% on 1 July 2024.
No. Your levies (and the GST on them) are passed directly onto the NHC and FENZ.