Your Trade Me Insurance policy premium includes levies we collect on behalf of the government. We break these down and explain the most recent rate increases.

The Earthquake Commission (EQC) levy

What is the EQC levy?

The EQC levy contributes to earthquake and other natural disaster insurance provided by the EQC.

This levy is included in the premium you pay to insurance providers, like Trade Me Insurance, who collect this levy on the government’s behalf and pay it directly to the EQC.

Holders of house insurance policies pay the EQC levy, no matter which insurance provider they’re with.

The EQC is changing

The EQC has made two key changes to the way it handles claims for natural disasters. From 1 July 2019:

The cover now focuses on Kiwis' single most important asset - their home. To do this the EQC has increased the cap on cover for houses damaged in natural disasters.
EQC no longer covers contents.

For more details see EQC.govt.nz

How your insurance is affected

House

The amount covered by the EQC is increasing from $115,000 to $172,500 (including GST).

What this means for you

The EQC levy you pay on your house insurance premium may go up as much as $115 per year (including GST). You can find out exactly how much your EQC levy is in your renewal certificate.

The time you have to lodge a claim has also increased. You now have up to two years after an event to lodge a claim with EQC, up from three months previously.

Contents

The EQC no longer covers contents.

What this means for you

Trade Me Insurance will now fully cover the total amount of any contents claim resulting from a natural disaster (subject to applicable policy terms and conditions). You may see EQCover in the premium breakdown of your policy, but it will have a charge of $0.

There is no change in your overall level of contents cover, though your Trade Me insurance premium may change to reflect the extra cover we provide you in the event of a natural disaster.

Fire and Emergency New Zealand

From 1 July 2017, The New Zealand Fire Service, National Rural Fire Authority and 38 rural fire authorities will merge to become one organisation – Fire and Emergency New Zealand (FENZ). The creation of FENZ will allow for a more coordinated fire and emergency service across New Zealand.

What is the Fire Levy?

The Fire Levy is paid on insurance for vehicles, contents and property – with the exception of Third Party car insurance. Fire Service Levies cover everything that a Fire Service does in addition to putting out fires; including educating the public, attending vehicle incidents and animal rescue among other things.

Why is the Fire Levy increasing?

To maintain the current level of services provided, and to establish FENZ over the next four years, the Fire Levy will be increasing from 1 July 2017. The Levy is the main source of funding for the new organisation.

How much is my Fire Levy increasing?

The table below will help you understand how much your levy has increased. If your Trade Me Insurance policy provides cover for fire damage, you’ll see a Fire Service Levy amount listed on your invoice. This is available to download online by logging into your My Insurance.

2017/2018 levy increase

What does this mean for me

Motor vehicle policies such as:

Car Insurance Comprehensive or Third Party Fire & Theft

$8.45 flat rate

An increase of $2.37 per vehicle per annum

Residential policies such as:

House Insurance and

Contents Insurance

10.60c per $100 insured

(insured amounts capped at $100,000 for residential buildings and $20,000 for contents)

Maximum levy payable per house is $106 and $21.20 for personal property

An increase of 3.0c per $100 insured

(a maximum increase of $30 per annum for residential buildings and $6 per annum for contents)