The Earthquake Commissions EQC cover changes will come into effect on 1 July 2019. These changes will affect our clients with residential home or contents insurance, residential cover as part of a rural policy, and commercial customers with residential aspects included in their policy.
A brief outline of what is changing:
- The $20,000 EQCover for domestic contents will be removed. In the event of a natural disaster, residential contents will now be covered solely by insurers. This means that the $40 EQC Levy will be removed from personal contents policies.
- EQCover for domestic buildings will increase from $100,000 to $150,000 (excluding GST). In the event of a natural disaster, insurers will cover losses above $150,000 (up to the policy sum insured), if required. This means that the levy will increase as follows (including GST):
Rental property: levy increasing from $276 to $345
Holiday home: levy increasing from $276 to $345
Multi-unit rental property: per unit levy increase from $276 to $345
Owner Occupied home: levy increasing from $230 to $345
In short, the EQC dwelling cover is increasing but so is the levy.
If you have any questions about the EQCover changes, please contact your broker on 06 349 0091.