New Zealand sits on the Pacific Ring of Fire, making natural disaster cover essential. Here is how EQC works, what it covers, and how it interacts with your private insurance.
EQC (Toka Tu Ake) is a New Zealand government entity that provides natural disaster insurance for residential property. It was established under the Earthquake Commission Act 1993 and is funded by levies on home insurance premiums.
EQC cover is automatic - if you have home or contents insurance with a private insurer, you are also covered by EQC for natural disaster damage. You do not need to buy separate EQC cover.
The EQC levy is collected by your private insurer and passed on to EQC. As of 2024, the EQC levy for house cover is 20 cents per $100 of cover, capped at the maximum cover amount. The levy for contents is a flat annual charge.
Note
EQC cover is only available to people who have private house or contents insurance. If you do not have insurance, you are not covered by EQC for natural disaster damage.
What Does EQC Cover?
EQC covers damage to residential property caused by specific natural disasters. The covered events are:
Important
EQC does not cover flood damage, storm damage, or fire - even if these events occur during or after a natural disaster. These are covered by your private insurer. This is a common misconception.
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
EQC Cover Limits
EQC cover has defined limits. If the cost of damage exceeds these limits, your private insurer covers the amount above the EQC cap (provided you have sufficient cover).
Current EQC Cover Limits (as at 2024)
Cover Type
Maximum Cover
Notes
Dwelling (building)
$300,000 + GST
Covers the home structure, fixtures, and fittings
Contents
$20,000 + GST
Personal belongings inside the home
Land
Assessed per claim
Covers the land under and immediately around the dwelling
For most homes, the dwelling cap of $300,000 + GST will not cover the full cost of major damage. Your private insurer handles any costs above this amount. This is why having adequate house insurance is essential alongside EQC cover.
Since 2022, most natural disaster claims are managed by your private insurer on behalf of EQC. This means you deal with one point of contact throughout the claims process, rather than contacting EQC separately.
Your private insurer will:
This "natural disaster response model" was introduced to streamline claims handling after the challenges experienced during the Canterbury earthquakes. Under the old system, homeowners often had to deal with both EQC and their insurer separately, which caused delays and confusion.
Tip
You no longer need to contact EQC directly for most claims. Simply contact your private insurer and they will manage the entire process.
Receive and assess your claim
Determine if it is an EQC claim (under the cap) or a private claim (above the cap)
Manage repairs and payments on behalf of EQC for claims within the EQC cap
Handle the private insurance portion for any costs above the EQC cap
Making an EQC 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 - Claims within the EQC cap are settled by your insurer on behalf of EQC. Claims above the cap are settled under your private policy.
Recent Changes to EQC
EQC has undergone significant changes in recent years:
The dwelling cap was increased from $150,000 + GST to $300,000 + GST in 2024, providing significantly more cover for homeowners.
The natural disaster response model was introduced in 2022, making private insurers the first point of contact for all natural disaster claims. This was a major shift from the previous system.
EQC also changed its name to Toka Tu Ake in 2023, reflecting its Maori heritage, though it continues to be widely known as EQC. For the latest updates, visit the EQC website.
Key Takeaways
EQC provides natural disaster cover for residential property in NZ
You are automatically covered by EQC if you have private house or contents insurance
EQC covers earthquakes, landslips, volcanic eruptions, hydrothermal activity, and tsunamis
EQC does not cover floods, storms, or fire - your private insurer covers these
The dwelling cap is $300,000 + GST; your private insurer covers amounts above this
Contact your private insurer (not EQC directly) to make a natural disaster claim
Frequently Asked Questions
No. EQC cover is automatic when you have house or contents insurance with a private insurer. The EQC levy is included in your insurance premium.
EQC covers the dwelling itself if the property owner has house insurance. Tenants need their own contents insurance to have EQC cover for their personal belongings.
Your private insurer's excess applies. There is no separate EQC excess. The excess is typically the greater of your policy excess or a percentage of the claim value, depending on your insurer.
No. EQC 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 receiving over 470,000 claims. The experience led to significant reforms including the new natural disaster response model where private insurers manage claims on EQC's behalf.
Disclaimer: This guide is for informational purposes only and does not constitute financial or insurance advice. EQC cover limits, levy rates, and processes may change. For the most current information, visit eqc.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 EQC cap.