The Natural Hazards Cover Cap in NZ (2026): What's Covered and Where Private Insurance Takes Over

Natural Hazards Cover (formerly EQC) in NZ: what the $300k dwelling cap pays, the land and levy rules, which hazards are covered, and where your private house insurer takes over.

If your home is damaged by an earthquake or another natural hazard, two insurers sit behind your claim, not one. The first is the public scheme that used to be called EQC. The second is your own private house insurer. They cover different things, in a set order, with a hard limit in between. This article explains what Natural Hazards Cover pays, where the cap sits, and how your private policy is meant to take over above it.

It is general information, not advice about your situation, but it should help you check your own cover before you ever need it.

What is Natural Hazards Cover and how did it replace EQC?

TL;DR: Natural Hazards Cover (formerly EQCover) is the public scheme that pays the first layer of a natural-hazard claim on your home. For each event it covers building damage up to $300,000 plus GST per dwelling ². Your private house insurer covers everything above that, up to your sum insured. If your sum insured is too low, you carry the shortfall.

On 1 July 2024 the Natural Hazards Insurance Act 2023 came into force. It replaced the Earthquake Commission (EQC) with the Natural Hazards Commission Toka Tū Ake (NHC), and renamed EQCover as Natural Hazards Cover (NHCover) ¹. Claims for damage that happens on or after 1 July 2024 are managed under the new Act ¹.

For homeowners, the day-to-day experience is much the same as it was under EQC. You hold private house insurance, a portion of your premium funds the public scheme, and if a natural hazard damages your home the first slice of the claim is met by NHCover. The name and the governing legislation changed; the basic two-layer structure did not.

What does Natural Hazards Cover actually pay for?

NHCover has two distinct parts: cover for your building, and limited cover for your land. They work very differently, so it helps to keep them apart.

Building cover applies to the home itself and certain related structures. For each natural hazard event, NHCover can pay up to $300,000 plus GST per dwelling towards repairing or rebuilding ². Above that figure, cover comes from your private house insurance policy ².

Land cover is narrower and works on a different basis. It covers a limited area of residential land around your home and access way, and it is a contribution toward the loss rather than a full rebuild of the land ⁵⁶. Crucially, your private insurer generally cannot top up land cover ⁶, so the NHCover land settlement is often all you receive for land damage.

What is the cap, and what happens above it?

The building cover cap is the headline number most people want. It is $300,000 plus GST per dwelling, per natural hazard event ². Including GST, that is around $345,000.

This cap level has been in place since 1 October 2022, when it doubled from the previous $150,000 plus GST ³. Claims for events before that date may sit under the older, lower cap ³, which matters mainly for historic damage rather than anything happening now.

The cap is per event, not per year. If two separate qualifying events damage your home, each can attract its own cover up to the cap, subject to the scheme's rules and assessment.

Above the cap, your private house insurer takes over, up to the sum insured on your policy ². The risk to watch is the gap that opens when the rebuild cost is higher than your sum insured. NHCover pays its capped share, the private insurer pays up to your sum insured, and any rebuild cost beyond that falls on you. That is the underinsurance shortfall, and it is the single most important thing within your control. Setting the right rebuild figure is covered in [how to set your house sum insured](how-to-set-house-sum-insured-rebuild-cost-nz).

Figure: How a major rebuild claim is split

Source: Natural Hazards Commission Toka Tū Ake; Insurance Council of New Zealand (ICNZ). Illustrative of how the layers stack for a building claim ².

The takeaway from the figure is that the public scheme and your insurer are designed to stack, not to overlap. The only layer with no insurer behind it is the third one, and that layer exists only if your sum insured is set too low for today's rebuild cost.

How does your private house insurer sit on top of Natural Hazards Cover?

Almost all standard house insurance in New Zealand is "sum insured" cover, meaning you nominate a dollar figure for the cost to rebuild your home. For a natural-hazard building claim, the layers work like this:

1. NHCover pays first, up to $300,000 plus GST ².

2. Your private insurer pays the balance, up to your sum insured ².

3. You meet anything above your sum insured.

In practice your private insurer usually manages the whole claim on your behalf, including the NHCover portion, so you generally lodge one claim rather than two. The split still happens behind the scenes, but you are not chasing two organisations yourself.

This is why your sum insured does so much work. NHCover's contribution is fixed at the cap; the variable part is whether your private sum insured is enough to cover the full modern rebuild cost, including demolition, professional fees, and compliance with current building rules. General principles of house cover are set out in [our guide to house insurance](blog-post-house-insurance).

Which natural hazards are covered, and which aren't?

NHCover applies to a defined list of perils. The list is specific, and storm and flood are treated differently from the rest, which trips a lot of people up.

NHCover building and land cover applies to: earthquake, natural landslip, volcanic eruption, hydrothermal activity, tsunami, and fire resulting from any of these ⁸. For storm and flood, NHCover covers only residential land, not the dwelling, so storm or flood damage to the building itself is met by your private house insurer ⁸.

Source: Natural Hazards Commission Toka Tū Ake; Natural Hazards Portal terms ⁵⁸. Cover depends on the terms of the Act and your private policy.

The practical point is that "natural disaster" is not one single cover. Earthquake damage to your house runs through NHCover first; storm damage to your house runs through your private insurer first. Both still rely on your private policy being in force, because the levy that funds NHCover is collected through it.

What about land, retaining walls and driveways?

Land cover is the part that most often disappoints people, because it is deliberately limited.

NHCover covers a defined area of residential land: the land under your home and related buildings, land within 8 metres of the home and related buildings, and the land under or supporting your main access way (such as the driveway) up to 60 metres from the home ⁵. Land outside those areas, and bare land with no insured home on it, is not covered ⁵.

Land cover is also a contribution, not full cover. The land cover cap is based on the market value of the insured damaged land, plus the value of insured retaining walls, bridges and culverts up to a limit ⁶. Settlement is the lesser of the repair cost or the market value of the damaged land ⁶. And, unlike building cover, your private insurer generally cannot top up land cover ⁶. So if it costs far more to stabilise a slipped site than the damaged land is worth, the gap is often not insured by anyone.

Excesses also differ between building and land claims:

Source: Natural Hazards Commission Toka Tū Ake, per insured home ⁷.

If you own a hillside or coastal property where land stability is the real exposure, this is worth understanding before an event, not after. Retaining walls and access ways carry their own limits, and they are a common source of surprise shortfalls.

How is Natural Hazards Cover paid for?

You do not buy NHCover separately. It is funded by the Natural Hazards Insurance Levy, collected through private home insurance policies that include fire cover ⁴. If you hold standard house insurance, you are almost certainly already paying it.

The maximum levy is $480 plus GST per year (about $552 including GST), set at a rate of 16 cents per $100 of the building cover cap, effective 1 October 2022 alongside the higher cap ⁴. The levy is a flat charge nationwide and does not vary by regional risk ⁴, so a home in a low-hazard area and a home in a high-hazard area pay the same levy for the same cap.

The link between the levy and your private policy is the part worth remembering: if you let your house insurance lapse, you generally lose the NHCover layer along with it, because the levy is collected through the policy.

What should homeowners check on their policy now?

These are things to review, not a recommendation for your situation. They are also the points an adviser would usually walk through with you.

01. Check your sum insured against today's rebuild cost. NHCover's cap is fixed, so your sum insured is what determines whether the upper layer is enough. Rebuild costs have moved a lot; an old figure may no longer be sufficient. See [setting your house sum insured](how-to-set-house-sum-insured-rebuild-cost-nz).

02. Confirm your policy is current and includes fire cover. That is what carries the NHCover levy and the public-scheme layer.

03. Understand your land exposure. If you are on a slope, near a waterway, or have long retaining walls or driveways, read how land cover and its caps work before an event.

04. Know which hazard runs through which insurer. Earthquake-type perils start with NHCover; storm and flood damage to the building start with your private insurer.

05. Read the policy wording, not just the summary. Whether a claim is paid depends on the terms, conditions and exclusions of your specific policy, and on your disclosure.

Smiths Financial does not provide advice on mortgages or property law. This is general information only — for property-specific or legal questions, please consult an appropriately authorised professional. For broader cover principles, see [domestic insurance basics](blog-post-title-domestic-insurance).

Frequently asked questions

What is the Natural Hazards Cover cap in New Zealand? For each natural hazard event, NHCover can pay up to $300,000 plus GST (around $345,000 including GST) per dwelling towards repairing or rebuilding your home. Cover above that amount comes from your private house insurance, up to your sum insured ².

Is Natural Hazards Cover the same as EQC? It is the successor. On 1 July 2024 the Natural Hazards Insurance Act 2023 replaced EQC with the Natural Hazards Commission Toka Tū Ake, and renamed EQCover as Natural Hazards Cover. The two-layer structure with your private insurer is broadly the same ¹.

What happens if my rebuild costs more than the cap and my sum insured? NHCover pays up to its cap, your private insurer pays up to your sum insured, and any cost above your sum insured falls on you. That underinsurance shortfall is the main risk you can control, by setting your sum insured to the full modern rebuild cost ².

Does Natural Hazards Cover include storm and flood? For storm and flood, NHCover covers only residential land, not the building. Storm or flood damage to the dwelling itself is covered by your private house insurer. Earthquake, landslip, volcanic, hydrothermal and tsunami damage to the building start with NHCover ⁸.

How much is the Natural Hazards levy and who pays it? The levy is collected through home insurance policies that include fire cover, with a maximum of $480 plus GST per year (about $552 including GST). It is a flat, nationwide charge that does not vary by regional risk ⁴.

Can my private insurer top up the land cover? Generally no. Land cover is a contribution based on the market value of the damaged land plus limited retaining walls, bridges and culverts, settled as the lesser of repair cost or market value. Private house insurance usually cannot top it up ⁶.

This article is general information only and is not personalised financial advice. It does not take into account your particular financial situation, goals or needs. Before acting, consider whether it's right for you and seek advice tailored to your circumstances. Craig Smith Business Services Ltd (FSP712931), trading as Smiths Financial, holds a Class 2 licence issued by the Financial Markets Authority and is a member of the Financial Dispute Resolution Service (FDRS). Smiths Financial does not provide advice on mortgages or property law. Natural Hazards Cover figures are set by Government and can change; figures are correct as at 3 January 2026. Whether an insurance claim is paid depends on the policy terms, conditions, exclusions, stand-down periods, underwriting and your disclosure — always read the policy wording. Written by Henry Smith, Financial Adviser; reviewed by Craig Smith, Principal Adviser. Last reviewed 3 January 2026.