The Earthquake Commission (EQC) has today become the Natural Hazards Commission Toka Tū Ake, reflecting its role in
supporting New Zealanders to prepare for and recover from a range of natural hazards, not just earthquakes.
The new name is one of a raft of changes introduced by the new Natural Hazards Insurance Act that comes into force 1
July 2024 to update and modernise the scheme’s governing legislation.
The Government’s natural hazards insurance scheme has been in place for nearly 80 years, providing baseline cover for
damage to insured properties from a range of natural hazards. Cover under the scheme remains largely the same under the
new legislation, but the Act clarifies cover and entitlements, and introduces changes to improve the experience of
insured homeowners making a claim.
Natural Hazards Commission Chief Executive Tina Mitchell said, “The Natural Hazards Commission exists to reduce the
impact of natural hazards on people, property and communities across New Zealand, by providing baseline property cover
for insured homeowners, investing in research and education to build more resilient communities, and helping build New
Zealand’s readiness to natural hazards.”
“The new Act reinforces and strengthens this role, and modernises our governing legislation to ensure we are better set
up to meet the needs of homeowners now and in the future.”
The Natural Hazards Insurance Act incorporates recommendations from the Public Inquiry into EQC and reflects lessons
learned from the experience of Canterbury homeowners.
Mitchell says the Act makes claims for natural hazard damage more straightforward, for example, by creating a clearer
process for claim excesses and calculations for retaining walls, bridges and culverts. Homeowners will also have
increased cover for mixed-use buildings, such as apartments in commercial building.
“The Act also introduces improvements for homeowners making a claim. We simplified the claim experience two years ago
through a partnership with insurers that channels insurance claims through your private insurer. These improvements will
be further strengthened through a new Code of Insured Persons’ Rights and an independent dispute resolution service,”
says Mitchell.
“Improvements to the scheme are timely as we see the impacts of a changing climate and the possibility of more extreme
weather events in the years to come,” she says.
New Zealand is highly exposed to natural hazard risks, including a range of geological hazards such as earthquakes and
volcanoes. The country also faces increasing exposure to severe weather events and sea level rise due to climate change.
This makes the Commission’s research and resilience programme of work as important as ever.
“Every year, we invest millions of dollars in natural hazards research and work hard to translate that into information
that can be used to improve seismic resilience, earthquake engineering and land use planning.”
“We also work hard to support homeowners to understand their own risks, and how they can build resilience at an
individual level. Knowing what you can do to safeguard your home and what you are covered for goes a long way in
providing peace of mind,” says Mitchell.Note:
About the Natural Hazards Insurance Act 2023
The Natural Hazards Insurance Act 2023 will replace the EQC Act for all damage that occurs to residential properties
from 1 July 2024. All claims for damage with a date of loss/damage before 1 July 2024 will continue to fall under the
EQC Act.
About the Natural Hazards Commission
The Natural Hazards Commission Toka Tū Ake exists to help New Zealanders prepare for and recover from the impact of
natural hazards. One of the ways we do this is by providing natural hazards insurance for homes and residential land.