From 1 July 2026, a new insurance levy structure will come into effect to help fund Fire and Emergency New Zealand (FENZ).
The levy is charged on insurance policies that include fire cover and helps support fire and emergency services across New Zealand. Following a Government review of FENZ funding, updated levy rates were confirmed in September 2024 and are designed to better reflect the level of emergency response resources used across different types of property and assets.
For many policyholders, the changes will mean adjustments to insurance costs from mid-2026, particularly for motor vehicle insurance and commercial property owners.
Key changes from July 2026 include:
• Motor vehicles: Annual levy increases to $25 per vehicle (currently $9.53), and will now also apply to third-party cover.
• Residential homes: Maximum annual levy reduces to $107.40.
• Contents insurance: Maximum annual levy reduces to $21.48.
• Non-residential property: Levy set at 7.76 cents per $100 sum insured, with no cap.
Specific property categories:
• Aircraft: 7.76 cents per $100 sum insured, capped at $77.60 annually per aircraft.
• Forests: 1.94 cents per $100 sum insured.
• Livestock: 1.94 cents per $100 sum insured.
• Contract works policies: 3.88 cents per $100 sum insured.
The new regulations are designed to ensure ongoing funding for Fire and Emergency services across New Zealand.
Get in touch to review your cover and understand what this means for you.