EQC premium increase kicks in
02 Nov 2017
The Earthquake Commission (EQC) premium has risen by one-third, in line with an increase announced in this year’s budget to help rebuild funds depleted by the Canterbury and Kaikoura catastrophes.
The total EQC premium increases to a maximum $276 including GST annually, up from a maximum $207. The EQC premium is calculated at 20 cents per $100 of cover on the first $100,000 of home cover and on the first $20,000 of contents cover.
The EQC premium increase will help rebuild the Natural Disaster Fund, depleted as EQC settles its liabilities arising from the Canterbury and Kaikoura earthquakes. The Natural Disaster Fund, along with EQC's current $4.8 billion reinsurance programme supported by the underlying Crown guarantee, are in place primarily to meet the potential costs of large-scale natural hazard events such as the Canterbury and Kaikoura earthquakes.
The increase also ensures EQC continues to provide cover for smaller scale natural disasters, such as the recent Edgecumbe floods, and invests in research into natural hazard risks and potential mitigation.
EQC provides natural disaster insurance for residential buildings, contents and land. Called EQCover, it is available up to certain limits for each damage-causing natural disaster event, as long as you have a valid private insurance policy that includes fire cover at the time of the event.