Changes to the Earthquake Commission (EQC) Act are now in effect. If you have residential fire insurance for your home or contents, find out how you’re affected.
What: Changes to the EQC Act include the following:
From 1 February 2019:
From 1 July 2019:
Changes to contents cover and the increase in the residential building cap will be phased in over 12 months from 1 July 2019. If you have a current fire insurance policy, the changes will take effect on the anniversary date of your existing policy (which is generally the annual renewal date). If you take out a new policy, the changes will take immediate effect.
Who: Residential property owners and landlords who have a current private insurance policy for their home that includes fire insurance. Tenants that reside in residential rental properties may also be affected.
Why: EQC is incorporating lessons learned from the Canterbury earthquakes and other events. The changes are aimed to improve the EQC claim management process and customer experience.
What you need to do: Talk to your insurance provider or broker about home or contents coverage for your residential property. If you have tenants, they’ll want to check their insurance policies as well.
If you’re thinking about buying a property that you believe may have been damaged in a natural disaster, be sure to ask the vendor for any documents they have available (eg historical records, previous claims). You can also contact EQC to see what information they have on record about the property.
EQC Act changes (external link) — Earthquake Commission