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The Toka Tū Ake – Natural Hazards Commission (NHC) is a government organisation that provides natural disaster insurance for residential property and residential land and also manages the Natural Disaster Fund. It was previously known as the Earthquake Commission (EQC).

NHC operates under the Natural Hazards Insurance Act 2023, which sets out the level of cover available in a natural disaster event.

The insurance provided by NHC is called “NHCover”. If you own residential land or property and have private insurance that includes cover for fire, you automatically have NHCover. You don’t have to pay extra for it.

If you are unable to get fire insurance through your private insurer, you may be able to get NHCover by applying directly to NHC.

NHCover covers loss or damage caused by any natural disaster or extreme weather event. It also insures you for fire that results from any of these events.

You’ll be covered by both your private insurance policy and NHCover in the case of a natural disaster or extreme weather event. NHCover covers specific things up to a maximum value; your private insurance covers damage over and above what is covered by NHCover (so long as it is written in your policy).

In the case of a natural disaster, NHCover pays for:

• Damage to land within the NHC Act limiyts
• Damage to certain land structures, such as bridges or retaining walls
• Damage to your home and land caused by landslides, earthquakes, tsunamis, hydrothermal activity and volcanic activity
• Damage to your land caused by debris and silt from flooding or loosened soil from flooding

NHCover doesn’t cover these things, but, depending on your policy, your private insurance may cover them:

• Damage to your home or building caused by flooding
• Damage to the things in your home – this is called “contents insurance”
• Damage to your vehicles – this is called “car insurance” or “vehicle insurance”
• Damage to plants and growing crops
• Loss of animals and livestock
• Damage to paths that aren’t the main accessway
• Theft that happens after the natural disaster
• The cost of staying somewhere else temporarily

Your private insurance might also pay out extra on top of the maximum pay-outs from NHCover.

NHCover doesn’t cover a building or land that wasn’t insured against fire at the time of the natural disaster. This includes when the insurance policy has lapsed or been cancelled.

In the case of flooding, NHCover can cover some areas of damage to your land. This includes damage to your land caused by debris and silt from flooding or loosened soil from flooding.

NHCover doesn’t cover flood damage to buildings, but this should be included in your private insurance.

In the case of a landslide, you can use NHCover for damage to your land and building caused by the landslide.

For damage to land, NHCover claims are usually cash settled. NHCover will pay the lesser of either:

• the actual loss suffered (minus the excess), or
• the NHCover land cap (minus the excess).

The maximum amount of NHCover you can claim for residential land is capped at the value of the damaged land. The land that is covered includes:

• Any land within 8m of a house
• Any main driveway or access way, up to 60m from the main house
• Any bridges, culverts, or retaining walls that directly support the land or access way.

For damage to buildings caused by landslide, NHC will pay up to a maximum of $300,000 plus GST (unless you’re insured for less). If the damage is more than $300,000 plus GST, your private insurance might pay for the rest.

Within this amount, NHCover will pay the lesser of either:

• The amount your building is insured for in cases of fire by your private insurer, or
• The amount your building is insured for under the Natural Hazard Insurance Act in your private insurance policy.

If there is more than one home specified in your policy, the NHCover building cap amount is multiplied by the number of homes there are.

You may be eligible for a payout if your property hasn’t been damaged by the natural disaster, but damage is likely to happen within one year as a direct result of the natural disaster. This is referred to as ‘imminent damage’. This is usually the case where there has been a landslide, where the land has become unstable.  Imminent damage must be likely to happen under ordinary circumstances, not just if there is another natural disaster.

NHC may not have to pay you if you bought or built on land known to be at risk of a natural disaster event.

 You won’t be eligible for NHCover if: 

• The property you bought or built on has a section 36 or section 72 notice under the Building Act on its certificate of title, and
• The natural disaster which caused the current damage is the same natural disaster as stated in the section 36 or section 72 notice or the council property records which led to the notice.

You are still eligible for NHCover if your home or land has been impacted by a natural disaster before, but there isn’t a section 36 or section 72 notice on the certificate of title. You can find more about section 36 and section 72 notices on the NHC website.

You should get independent legal advice if NHC or your insurer tells you a section 36 or section 72 notice affects your insurance.

If you have reason to believe you were insured but your insurer has advised differently, you may wish to seek independent legal advice.

Otherwise, try approaching these organisations for help, advice or assistance, if your property is uninsured:

• Red Cross
• Your local council (including to talk to community navigators)
• Healthline (for wellbeing support)
• Ministry of Social Development
• Habitat for Humanity

You may also be able to seek assistance from other community organisations operating in your area. These organisations often play an important role following a natural disaster, although the nature of their responses and ability to help you will vary from case to case.

Most claims are processed by your private insurance company. They make the NHCover claim for you. However, it may be best to also check directly with NHC that your claim has been lodged.

NHC or your insurer will need to assess your claim by checking the following:

• What was damaged
• What caused the damage
• If the damage can be repaired
• If it can be repaired, what the cost of repairing the damage is
• If it can’t be repaired, what the value of your loss is

To work all this out, your property and land might need to be assessed by engineers, valuers and other specialists.

Once this has been worked out, NHC will make you an offer. This is usually called a “settlement”. You should get independent legal advice before accepting the offer to make sure you’re being offered the correct amount.

The Natural Hazards Insurance Act 2023 introduces a new, independent dispute resolution scheme to assist homeowners in resolving disagreements with the NHC regarding natural hazard insurance claims. This scheme, known as the NHCover Dispute Resolution Service, is operated by Fair Way Resolution and became available for claims where damage occurred on or after 1 July 2024.

The new Code of Insured Persons’ Rights under the Natural Hazards Insurance Act is designed to ensure homeowners’ claims are managed and settled in a fair and timely manner. The new code defines homeowners’ rights and provides for a formal complaints process.