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EQC and NHC Natural Disaster Cover Explained
New Zealand sits on the Pacific Ring of Fire, so natural disaster cover matters. EQC is now the Natural Hazards Commission Toka TÅ« Ake (NHC). Here is what NHCover covers, what it costs, and how it works alongside your private insurance.
Natural Hazards Commission Toka TÅ« Ake (NHC, formerly EQC) is the New Zealand government entity that provides natural disaster cover for residential property. It operated as the Earthquake Commission (EQC) under the Earthquake Commission Act 1993 until 1 July 2024, when the Natural Hazards Insurance Act 2023 came into force and the organisation became the Natural Hazards Commission. The cover it provides is now called NHCover (previously EQCover).
NHCover is automatic. If you have a private home insurance policy that includes fire cover, your home is also covered by NHC for natural disaster damage. You do not buy NHCover separately, and contents insurance does not trigger it.
The NHC levy is collected by your private insurer and passed on to NHC. The levy is 16 cents per $100 of building cover, up to the $300,000 + GST cap, so the maximum levy is $480 + GST per year.
Note
NHCover applies to residential buildings and some land. It follows your private home insurance - if you do not hold a home insurance policy that includes fire cover, you do not have NHCover.
What Does NHCover Cover?
NHC covers damage to residential buildings and some surrounding land caused by specific natural hazards, plus fire caused by any of them. Storm and flood damage is covered for residential land only, not for the home itself. The natural hazards covered are:
Earthquake - Including earthquake-related damage such as shaking, liquefaction, and lateral spread
Natural landslip - Land movement caused by natural events (not human activity)
Volcanic eruption - Including lava flow, ashfall, and volcanic gases
Hydrothermal activity - Geothermal events such as hot springs or geysers
Tsunami - Sea waves caused by underwater earthquakes or volcanic activity
Important
NHCover does not cover storm or flood damage to your home itself, and it only covers fire when a natural hazard caused it. It does cover storm and flood damage to your residential land, within set limits. Your private insurer covers storm and flood damage to the building. This is a common misconception.
NHCover Limits
NHCover has defined limits. Where damage costs more than the cap, your private insurer covers the amount above it, provided your sum insured is high enough.
NHCover Limits (from 1 July 2024)
Cover Type
Maximum Cover
Notes
Dwelling (building)
$300,000 + GST
Covers the home structure, fixtures, and fittings. Cap set 1 October 2022
Land
Assessed per claim
Land under the home, within 8 metres of it, and under the main access way up to 60 metres
Contents
Not covered
EQC contents cover was removed on 1 July 2019. Contents are fully private
Excess
$500 per insured home for building claims, and $500 for land claims
Applies to damage on or after 1 July 2024. If a claim covers both the home and the land, both excesses are deducted
For most homes the $300,000 + GST cap will not meet the full cost of a major rebuild. Your private insurer handles costs above it, which is why your sum insured needs to be accurate.
Since mid-2021, your private insurer has managed natural disaster claims including the NHCover portion, and this continued under the Natural Hazards Insurance Act 2023 from 1 July 2024. You deal with one point of contact rather than lodging separately with NHC.
Your private insurer will:
Receive and assess your claim
Determine what falls under NHCover (within the cap) and what falls under your private policy (above the cap)
Manage repairs and payments on behalf of NHC for the NHCover portion
Handle the private insurance portion for any costs above the cap
This model was introduced to streamline claims handling after the difficulties experienced during the Canterbury earthquakes, when homeowners often had to deal with both EQC and their insurer separately.
Tip
You do not need to contact NHC directly for most claims. Contact your private insurer and they manage the whole process.
Making an NHCover Natural Disaster Claim
If your property is damaged by a natural disaster, follow these steps:
Ensure safety - Make sure everyone is safe. Follow Civil Defence instructions and do not enter damaged buildings until they have been assessed.
Document the damage - Take photos and videos of all damage as soon as it is safe to do so.
Contact your insurer - Call your private insurer's claims line. They will lodge the claim and manage the process. Major insurers like AA Insurance, Tower, and State all have dedicated natural disaster claims processes.
Temporary repairs - You can make urgent temporary repairs to prevent further damage (e.g. tarping a damaged roof). Keep receipts for any costs.
Assessment - Your insurer will arrange for the damage to be assessed. This may involve engineers or building assessors for significant damage.
Settlement - The NHCover portion is settled by your insurer on behalf of NHC. Costs above the cap are settled under your private policy.
Recent Changes to NHCover
Natural disaster cover in New Zealand has changed substantially in recent years:
The building cap rose from $150,000 + GST to $300,000 + GST on 1 October 2022, and the maximum levy became $480 + GST per year.
Contents cover was removed on 1 July 2019. Household contents are now covered entirely by private contents insurance.
On 1 July 2024 the Natural Hazards Insurance Act 2023 replaced the Earthquake Commission Act 1993. EQC became the Natural Hazards Commission Toka TÅ« Ake, EQCover became NHCover, and a flat excess of $500 per insured home was introduced for building claims, with a separate $500 excess for land claims. For the latest details, see the NHC website.
It covers fire caused by a natural hazard, and storm and flood damage to residential land only. Storm and flood damage to the home itself is covered by your private insurer
The building cap is $300,000 + GST, with a $500 excess on claims from 1 July 2024
Contents have not been covered since 1 July 2019
Contact your private insurer, not NHC, to make a natural disaster claim
Frequently Asked Questions
No. NHCover is automatic when you have a private home (building) insurance policy that includes fire cover. Contents insurance does not trigger NHCover. The NHC levy is included in your home insurance premium.
NHC covers the home itself if the property owner has a home insurance policy that includes fire cover. NHC does not cover contents, so tenants need their own private contents insurance to cover their belongings.
A $500 excess per insured home applies to NHCover building claims for damage occurring on or after 1 July 2024, and a separate $500 excess applies to land claims. Your insurer's own excess applies separately to any part of the claim above the NHCover cap, and natural disaster excesses on private policies are often higher than standard excesses.
No. NHC only covers residential property. Commercial property owners need to arrange their own natural disaster cover through their commercial insurer.
The 2010-2011 Canterbury earthquakes were the largest insurance event in NZ history, with EQC (as NHC was then called) receiving over 470,000 claims. The experience led to significant reforms including the new natural disaster response model where private insurers manage claims on NHC's behalf.
Disclaimer: This guide is for informational purposes only and does not constitute financial or insurance advice. NHC cover limits, levy rates, and processes may change. For the most current information, visit naturalhazards.govt.nz or contact your insurer. Information is current as at the date of publication but may change.
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Ensure your private insurance provides adequate cover above the NHCover cap.