From 1 July 2024, there will be an increase in the levy rates collected by private insurers on behalf of Fire and Emergency New Zealand (FENZ).
The levy is payable on all assets insured in New Zealand where the insurance policy covers the asset for fire damage.
This change is part of a transitional period aimed at ensuring adequate coverage and support for insured assets, and these new transitional levies will apply from 1 July 2024 to 30 June 2026.
The FENZ levy rate will increase from the current 10.60c per $100 of sum insured to 11.95c per $100 of sum insured.
The new annual levies will apply to all new and renewing policies with a start date on or after 1 July 2024.
The new levy rate applies to several specific categories, each with its own upper limits and calculation methods.
- Residential Buildings: The maximum levy payable will rise from $106 + GST to $119.50 + GST.
- Domestic Contents: The maximum levy payable will increase from $21.20 + GST to $23.90 + GST.
- Motor Vehicles (under 3.5 tonne gross laden weight): The flat rate levy will increase from $8.45 + GST to $9.53 + GST per vehicle.
- Marine Cargo and Contract Works: The levy is calculated at the normal rate but can be pro-rated for short-term policies.
The levy for all non-residential and other property is not capped and will apply at the rate of 11.95c per $100 of sum insured.
For assets where the indemnity value is less than the sum insured, the levy may be calculated based on the indemnity value, subject to the completion of a statutory declaration.
The increase in levy rates ensures that coverage remains robust and capable of addressing the risks associated with fire damage to various assets. It’s important to understand how these changes may impact your insurance costs and planning.
If you have any questions about how these changes might affect your coverage, please don’t hesitate to contact your broker. We’re here to help.
