Natural Hazards Insurance (NHI) and Fire and Emergency New Zealand (FENZ) levies

The Natural Hazards Commission Toka Tū Ake* (NHC) Natural Disaster Fund and Fire and Emergency New Zealand are both funded via Government levies. Insurance companies, like AA Insurance, include these levies in the premium you pay and they’re passed on to the NHC and FENZ.

The Natural Hazards Insurance levy

The NHI levy helps to fund earthquake and other natural hazard insurance cover provided by the NHC. It’s included in your Home and Landlord insurance premiums and the exact amount you pay can be found in your policy notices.

Residential buildings

16c per $100 insured up to $300,000 (+GST)

*From 1 July 2024, the Earthquake Commission (EQC) changed their name to the Natural Hazards Commission Toka Tū Ake (NHC). Please be assured that the claim process remains the same and you can lodge all earthquake and natural hazard-related home claims with us directly.

For more information about the NHI levy and recent changes, please visit the NHC website.

The Fire and Emergency New Zealand levy

The FENZ levy helps to fund the services provided by Fire and Emergency New Zealand. It’s automatically included in the insurance premium of policies which provide cover against fire, such as motor vehicles (excluding Third Party Car Insurance policies), residential contents and residential properties.

From 1 July 2024, the Fire and Emergency levy has increased. As a result of this, your premium may change. The exact amount you pay can be found in your policy notices and is calculated as follows:

Residential buildings

10.6c per $100 insured up to $100,000, maximum levy payable of $106.00

11.95c per $100 insured up to $100,000, maximum levy payable of $119.50

Residential contents

10.6c per $100 insured up to $20,000, maximum levy payable of $21.20

11.95c per $100 insured up to $20,000, maximum levy payable of $23.90

Motor vehicles (less than 3.5 tonne gross laden weight)

$8.45 (flat rate for each motor vehicle)

$9.53 (flat rate for each motor vehicle)

Other property i.e. contract works, motor vehicles more than 3.5 tonne gross laden weight

10.6c per $100 insured

11.95c per $100 insured

For more information please visit the FENZ website.

Frequently asked questions

You’ll find answers for many of your questions here. If you have a more specific question or want more detail, please contact us.

View all FAQs

Concerned about the cost of your insurance?

Here are some ways to save on your premium

Check your contents sum insured – use the online calculator on our website (provided by ‘Sum Insured Pty Ltd’) to check everything is up-to-date and that the cover you have would be enough to replace all your contents if you lost everything. For example, if you have downsized since setting up your policy, you may be paying for more cover than necessary. It’s also important your sum insured is updated when you buy new stuff or upgrade your belongings (especially expensive items like a new TV or sofa) so you’re not caught short in the event you need to claim. Often, the extra bit of cover you could need might not significantly increase your premium.

Review your excess – depending on what you think is manageable for your budget, you may want to review your excess. There are different excess options available, in case you need to make a claim, and generally the larger the excess, the smaller the premium. Remember, you’ll need to pay this amount if you make a claim so it should still be affordable. You should also take into account any additional excesses that may

Check your home sum insured – use our online calculator to check it’s up-to-date and will sufficiently cover the rebuild of your home. For more information, check out our sum insured page.

Consider how you pay – you can choose to pay your premium annually or spread the cost by fortnightly or monthly direct debit. You’ll pay less if you pay one annual lump sum.

Review your benefits – you’ll find your optional benefits listed on your policy schedule or on the Policy Summary page in your My AA Insurance account. For example;
- If you could use another vehicle while yours is being repaired and wouldn’t need us to provide a rental car, you may wish to remove the optional rental cover benefit from your Comprehensive Car Insurance Policy. Removing this benefit saves $50 (Inc. GST) per year.
- You may decide you no longer want or need the optional excess-free glass cover benefit for your Home Insurance Policy. Removing this benefit saves $69 (Inc. GST) per year.