NZ Seismic Risk Guide

Earthquake Insurance in New Zealand

New Zealand experiences over 15,000 earthquakes a year. Understanding how EQC's Natural Hazards Cover (NHCover) works alongside your private buildings insurance — and where the gaps are — is essential for every NZ homeowner.

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Important: EQC became NHC on 1 July 2024

The Earthquake Commission has been replaced by the Natural Hazards Commission Toka Tū Ake (NHC) under the Natural Hazards Insurance Act 2023. Your cover now works differently — the building cap doubled to $300,000 but contents cover has been removed entirely.

How NHCover Works in 2024–2025

NHCover cap (from 1 July 2024)

$300,000

Per residential building (GST inclusive), replacing old EQC $150,000 cap

Standard excess

$1,000 flat

Fixed flat excess, replacing the old 1% of sum-insured variable excess

Contents cover

Removed

NHC no longer covers home contents — private insurer only from 2024

Land cover

Yes (limited)

Residential land covered for certain natural hazard damage up to defined caps

Your private buildings insurance policy automatically includes NHCover for earthquake, volcanic eruption, tsunami, storm, flood, and landslip. The NHC levy (~$480/yr) is collected by your insurer and funds this cover. You don't need a separate EQC/NHC policy — it's bundled with your buildings insurance.

What Private Buildings Insurance Covers (Above NHC)

NHCover pays up to $300,000. If your rebuild cost is higher — and for many NZ homes it is — your private insurer covers the rest. Private cover also extends to expenses NHC doesn't touch:

Rebuild costs above the $300,000 NHCover cap

Full replacement value for modern high-spec homes

Loss of rent while your property is being repaired

Emergency accommodation costs

Temporary repairs to make the home habitable

Professional fees (architects, engineers, consents)

Demolition and debris removal costs

Retaining walls, fences, and driveways (varies by policy)

The Critical Gap: Underinsurance

With NZ rebuild costs rising 35–45% since 2019 (Rider Levett Bucknall, 2024), many homeowners who set their sum-insured years ago are now significantly underinsured. If your sum-insured is $500,000 but the true rebuild cost is $750,000, you'd face a $250,000 shortfall after a total loss — even after NHC pays its maximum.

Read our underinsurance guide

Earthquake Risk by NZ Region

Risk — and therefore premiums — vary significantly by location. Insurers use detailed seismic hazard models; properties in high-risk zones can pay substantially more for earthquake cover.

Wellington

Wellington Fault capable of Mw 7.5+ event directly under the city

Extreme

Christchurch / Canterbury

Hidden fault lines proved by the 2010–2011 sequence; ongoing liquefaction risk

High

Hawke's Bay

Napier 1931 Mw 7.8; Hikurangi subduction zone offshore

High

Auckland

Volcanic rather than tectonic; some alpine fault risk from distant events

Moderate

Nelson / Marlborough

Wairau Fault (Alpine Fault system) — capable of large magnitude events

High

Southland / Otago

Lower frequency but proximity to Alpine Fault system means major events possible

Moderate

See region-specific guides: WellingtonChristchurchHawke's BayNelson / Marlborough

Frequently Asked Questions

Do I still need private buildings insurance if I have EQC / NHC?

Yes — NHCover only pays up to $300,000 per building and doesn't cover the full cost of rebuilding most NZ homes. Private buildings insurance covers the gap between the NHC payout and your full rebuild cost, plus loss of rent and other expenses the NHC doesn't cover.

What changed with the Natural Hazards Commission in 2024?

From 1 July 2024, EQC became the Natural Hazards Commission Toka Tū Ake. Key changes: the residential building cap rose from $150,000 to $300,000 (GST inclusive); the excess moved to a flat $1,000 (from 1% of sum-insured); contents cover was removed entirely; and a new Code of Insured Persons' Rights was introduced.

How do I make a claim for earthquake damage?

Notify your private insurer first — they manage the claim and liaise with the Natural Hazards Commission on your behalf. You no longer need to contact NHC directly. Document all damage with photos before any repairs begin.

Is liquefaction damage covered?

Liquefaction is a natural hazard covered by NHC for residential buildings and land (within defined caps). Your private insurer's policy should cover damage above NHC limits. Check your policy wording carefully, as terms vary between insurers.

What is the NHC levy on my insurance premium?

The NHC levy (formerly EQC levy) is approximately $480 per year for residential buildings and is collected by your private insurer as part of your premium. It funds the NHC and provides your NHCover automatically.

Is Your Home Properly Protected Against Earthquakes?

A licensed NZ adviser will review your current sum-insured, check for coverage gaps, and source the right policy for your property and location.

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