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Understanding your House insurance premium

Important information about our pricing changes

What has changed

We’ve recently changed our pricing to more fairly reflect and distribute our earthquake insurance costs. To do this we’ve introduced address-based pricing, using some of the most sophisticated and up-to-date earthquake data available. This allows us to more accurately assess the level of risk each insured property faces. This new approach means you may see either an increase (ranging from minimal to significant), or a decrease in your premium, depending on where you live.

Why we’ve made the change

Insurance premium, (the amount you pay us for your insurance cover), is determined by taking a range of factors into consideration. These factors include the impact of significant catastrophic losses caused by events like cyclones, floods, earthquakes and fires. New Zealand in particular faces all of these risks. The Kaikoura earthquake and the Edgecumbe flood are just two examples in recent memory that highlight the reality of the risks we face.

Insurance plays a vital role in helping communities recover from these types of events - we understand this and we have a long-term commitment to help set things right for our customers’ when they do occur.

To support this commitment and to be in a position to meet our customers and communities’ needs in the event of a disaster, we changed the way we price insurance to more fairly reflect and distribute our earthquake insurance costs. This approach means the price you’ll pay for your insurance now takes into consideration the specific risks to your property. Properties at greater risk from earthquakes or other events will have higher insurance premiums than properties considered less at risk.

Understanding your insurance premium

Your insurance premium (the amount you pay us) is made up of several different components: the company premium, levies we collect on behalf of the Government, and GST.

Company premium

This is the money we use to run our business which includes paying claims. We also need to pay our insurance – this is called reinsurance. Insurance premiums are calculated on a variety of factors including the type of cover, likelihood of claims and value and location of the property/item being insured. The frequency and nature of significant catastrophic events like cyclones, floods, earthquakes and fires also impact company premium.

Earthquake Commission (EQC) Levy

This contributes to EQC’s earthquake and natural disaster cover. We collect this on behalf of the
Government and pay it directly to the EQC. This levy increased on 1 November 2017 for all house and contents policies.

Fire Service Levy

This levy covers most of the work that Fire and Emergency New Zealand does, including putting
out fires, educating the public and attending vehicle incidents. We collect this levy on behalf of the
Government and pay it directly to Fire and Emergency New Zealand. This levy increased on 1 July 2017.

Tax (GST)

Your premium includes a 15% Goods and Services Tax on the total amount owing.


For more information

If you have any questions about this change or would like to discuss your insurance premium, please call us on 0800 800 444 or email 



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