NZ earthquake commission raises cap limit
The New Zealand government is set to increase the cap limit on residential building earthquake cover (EQC) to $150,000 from previously $100,000.
EQCover guaranteed by the New Zealand government and provides natural disaster insurance for residential homes, land and contents in the country. EQCover insures against loss or damage from earthquake, natural landslip, a volcanic eruption, hydrothermal activity, or a tsunami.
New Zealanders automatically have EQCover (EQC) protection for home and land if their current private home insurance policy includes fire insurance, which most do. As a result of the measure, the cover will be increased by 50 percent.
Other changes to the cover include enabling EQC to accept claim notifications for up to two years after a natural disaster, rather than the current three-month time limit for such notifications. The measures remove EQC insurance cover for contents.
“Removing cover for contents will increase EQC’s ability to allocate more resources when responding to a natural disaster and help reduce any delays in resolving residential building and land damage claims,” said earthquake commission Megan Woods.
“Government has talked to the insurers and indication is that private insurance cover for contents will continue to be available at a reasonable cost,” Woods said.
The new rules also clarify EQC’s authority to share information to support the implementation of the EQC Act and settlement of insurance claims and where this is in the public interest and safety.
It is expected that the changes and the increase to the cap limit for EQC residential building cover will come into effect on July 1, 2019.
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