Natural Hazards Insurance Act (NHI) and The Fire Emergency NZ (FENZ) Levy update

New Zealand’s new Natural Hazards Insurance Act comes into effect from 1 July, 2024. It will replace the existing Earthquake Commission Act 1993 (EQC Act), that currently provides cover caused by natural disasters, such as earthquakes, floods, volcanic eruptions, and landslides to damaged land and buildings. Natural hazard is a new defined term under the new Act which replaces the old definition of natural disaster. The new Act defines the following as ‘natural hazards,’ earthquakes, hydrothermal activity, landslides, tsunami, volcanic activity, floods, storms, natural hazard fires. However, the normal action of the wind or water causing gradual erosion (including, for example, coastal erosion, bank erosion, and sheet erosion) is not a natural hazard. The new law will affect all natural hazard claims with a date of loss on or after 1 July 2024.

What policies will be affected by the NHI law change?

  • Fire
  • House
  • Contents
  • Material Damage

  • House
  • Contents
  • Farm Assets
  • Business Interruption

To find out more information about this law change, please visit the following website.

In conjunction with the new Act the Fire Emergency NZ (FENZ) Levy for natural disaster/ natural hazard claims will also increase. The change will impact new business policies with an inception on or after 1 July 2024 and, existing policies from the renewal date on or after 1 July 2024.

For further information, please consult the FENZ website.

Leave a Reply

Your email address will not be published. Required fields are marked *