The Earthquake Commission (EQC), now operating as Toka Tū Ake, is New Zealand’s government-backed natural disaster insurer. It provides the first layer of cover for your home and land when a natural disaster strikes — but only if you also have private home insurance.
What Is EQC?
EQC (Toka Tū Ake — “to stand tall and be resilient”) is a Crown entity established under the Earthquake Commission Act 1993. It was set up to provide New Zealanders with affordable natural disaster cover for residential property — recognising that private insurers alone couldn’t sustain the risk in one of the world’s most earthquake-prone countries.
EQC cover is automatic — if you have a private home insurance policy, you also have EQC cover. The EQC levy is collected by your home insurer as part of your premium and forwarded to EQC.
What EQC Covers
EQC covers damage to residential buildings and residential land caused by a natural disaster:
Natural disasters covered:
- Earthquake
- Tsunami
- Volcanic eruption
- Hydrothermal activity (geothermal — relevant in Rotorua/Taupō area)
- Natural landslip
- Storm and flood (for land damage — see below)
- Fire caused by any of the above
What EQC covers:
- Residential buildings — up to $300,000 (plus GST) per event
- Residential land — up to $300,000 (plus GST) per event (introduced after Canterbury earthquakes; covers retaining walls, access paths, land slippage)
- Contents — up to $20,000 (plus GST) — only if you have private contents insurance
What EQC Does NOT Cover
- Properties with no private insurance — you must have private home or contents insurance for EQC to apply
- Commercial properties
- Gradual damage (not caused by a sudden event)
- Flood damage to buildings — flood damage to the land may be covered, but not to the building structure itself (your private insurer covers this)
- Damage above EQC limits — this is covered by your private insurer
How EQC Limits Work in Practice
When a natural disaster damages your home:
- EQC covers up to $300,000 (plus GST) for the building
- Your private insurer covers the excess above $300,000 — so if it costs $800,000 to rebuild, EQC pays $300,000 + GST, and your insurer pays the remaining $430,000 (+ GST amount)
- Your insurer is your single point of contact — since 2019, your private insurer manages your EQC claim on EQC’s behalf (you don’t lodge separate claims)
Since 2019 reforms, the EQC cap increased from $150,000 to $300,000, and your insurer became the single point of contact for claims (previously you had to lodge separately with EQC, which caused confusion in Canterbury).
How EQC Is Funded
EQC is funded by:
- The EQC levy — collected by private insurers as part of your home insurance premium
- The Natural Disaster Fund — built up from levies over decades
- Government guarantee — if the fund is exhausted (as happened after Canterbury), the government underwrites EQC
The EQC levy rate changes over time. From 2024, it is $345 per year per insured property (capped — regardless of sum insured above a threshold).
Canterbury Earthquakes — Lessons Learned
The 2010–2011 Canterbury earthquake sequence was the largest insurance event in NZ history and one of the largest in the world. It revealed significant issues with the EQC model:
- Many claimants found EQC’s repair assessments were inadequate — homes were “repaired” that should have been rebuilt
- Communication between EQC and private insurers was confusing — claimants dealt with two separate systems
- Land damage (TC3 “liquefaction” zones) created complex land-value situations
The 2019 reforms (single point of contact, higher cap) directly addressed these issues.
Making an EQC Claim
Since 2019, you lodge your claim with your private insurer — they manage the EQC portion on EQC’s behalf.
- Contact your private insurer immediately after a natural disaster event
- Document damage with photos and video
- Keep records of emergency repairs (you can claim for reasonable emergency repairs)
- Your insurer will assess the damage and determine what falls under EQC and what falls under your private policy
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