Natural hazard insurance payout cap doubled

WELLINGTON: A new law — which came into force on Saturday — doubles the amount of EQCover that insured homeowners whose houses are damaged by a natural hazard can claim.

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.’’

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

The rate of levies has been reduced by 4c per $100 of EQCover, from 20c to 16c, but because of the increase in cover most homeowners will end up paying higher levies overall.

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