New law doubles top EQC claim for insured homeowners

Source: Radio New Zealand

A new law - coming into force today - doubles the amount of EQC cover that insured homeowners whose houses are damaged by a natural hazard can claim.

A seisomograph shows an earthquake (file picture).

Toka Tu Ake EQC chief executive Tina Mitchell said the cap - previously $150,000 - was now $300,000.

"We all know that house materials have gone up and building costs have gone up, so the cap has been adjusted up to reflect that change."

Mitchell said the change, which was announced a year ago, would automatically be applied when people renewed their insurance policy or took out a new one.

The rate of levies has been reduced by four cents per $100 of EQC cover, from 20 cents to 16, but because of the increase in cover, most homeowners will be paying higher levies overall.

Owners automatically have EQC cover for their home and some residential land if they have a current private insurance policy that includes fire insurance, which most do.