Government levies explained
Your Trade Me Insurance policy premium may include one or more government levies. Here's what they are and how they work.
What's a levy?
A levy is a fee that all insurance companies are required by the government to collect and pass onto other organisations. There are two key levies that you may see included in your insurance premiums.
The Natural Hazards Insurance (NHI) levy
Your Natural Hazards Insurance (NHI) levy helps fund insurance for houses and land in the event of certain natural hazards.
The Natural Hazards Commission Toka Tū Ake (NHC) provides cover for your home or holiday home against damage caused by a natural hazard including earthquakes, landslides, volcanic activity, hydrothermal activity, tsunamis, and natural hazard fires that occur because of any of these hazards. Generally, the first $300,000 plus GST towards repairing or replacing your home is provided by NHC.
Private insurers, like Trade Me Insurance, pay the rest of any claim for any damage to your home up to the amount agreed in your insurance policy. It's a good idea to regularly check your house insurance cover, and ensure it is enough to rebuild your home.
The NHC also provides cover for your land, contributing to the costs to repair damage caused by the natural hazards listed above as well as by storms and floods. The land cover is capped, so it's important to understand the limits of this cover and these can be found in more detail here.
How much does it cost?
The NHI levy is currently set at 16c per $100 insured, up to $300,000 plus GST. So, the maximum you'll pay is $480 +GST per year.
Read more about the Natural Hazards Commission Toka Tū Ake.
Fire and Emergency Levy
The Fire and Emergency Levy helps fund Fire and Emergency New Zealand’s (FENZ) services across Aotearoa. We collect this levy on their behalf as part of your insurance premium. This levy is set by the Government and is collected by all fire and general insurers in New Zealand. You’ll always see it listed clearly on your invoice, so there are no surprises.
How much does it cost?
The amount you pay depends on what you’ve insured and its value.
Important: The levy is changing for policies starting or renewing from 1 July 2026 across all New Zealand insurance providers.
Policies starting or renewing before 1 July 2026
House: A maximum annual levy of $119.50 plus GST applies per dwelling.
Contents: An annual levy of up to $23.90 plus GST applies. Additional levy may apply for policies that include specified items such as, jewellery or artwork.
Car/EV: A flat fee of $9.53 plus GST for vehicles up to 3.5 tonnes applies to all Comprehensive and Third Party, Fire and Theft covers.
Policies starting or renewing from 1 July 2026
House: The levy will be calculated at a rate of 10.74 cents per $100 sum insured, with maximum annual levy of $107.40 plus GST per dwelling.
Contents: The levy will be calculated at a rate of 10.74 cents per $100 sum insured, with maximum annual levy of $21.48 plus GST.
Car/EV: The levy will increase to $25 (plus GST) per vehicle and will apply to all car policies. This includes Third Party cover, which was previously excluded, as well as Comprehensive and Third Party, Fire & Theft.
Levy FAQs
No, these levies are set by the government and part of the law. All insurance companies are required to collect them, and everyone with applicable insurance policies needs to make their contribution.
Yes. From time to time, the government may make changes to the levies that insurance companies collect on their behalf. For example, the EQC levy (now known as the NHI levy) changed in 2022. The Fire and Emergency Levy will be changing for policies starting or renewing from 1 July 2026.
No. Your levies (and the GST on them) are passed directly onto the NHC and FENZ.
