On 1 July 2024 the Natural Hazards Insurance Act 2023 took effect. It modernises and replaces the Earthquake Commission Act 1993 for damage to residential property and land on or after 1 July 2024.
If earthquake or natural disaster property damage occurred prior to 1 July 2024, you would make an EQC Act claim.
Under the Natural Hazards Insurance Act 2023, the longstanding Earthquake Commission Toka Tū Ake has been renamed the Natural Hazards Commission Toka Tū Ake. The new legislation will commonly be referred to as ‘NHI New Zealand’ or simply ‘NHI NZ.’
What does natural hazards insurance cover?
The primary purpose of natural hazard insurance cover (or ‘NHI New Zealand’ cover) under the legislation is to ‘contribute to the replacement or reinstatement of dwellings that suffer natural hazard damage. There are legislative caps for residential buildings and land.
Under the legislation, NHI NZ cover is for damage to:
Residential buildings that’s a direct result of:
- Earthquake
- Hydrothermal activity
- Landslide
- Tsunami
- Volcanic activity
- A fire that’s a consequence of any of the above natural hazards
Residential land that’s a direct result of:
- Earthquake
- Hydrothermal activity
- Landslide
- Tsunami
- Volcanic activity
- Storm
- Flood
- A fire that’s a consequence of a storm or flood
Natural hazard cover extends beyond a dwelling to include:
- Certain other building parts, structures and infrastructure
- The land on which the dwelling is situated and certain surrounding land
Time limits for making a natural hazard claim
If your property has been damaged by a natural hazard, it’s important to act quickly because strict time limits apply to make a claim. The key date relevant to property damage caused by natural hazard is 1 July 2024:
- If the damage first occurred before 1 July 2024, you’d make an EQCover claim under the Earthquake Commission Act 1993
- If the damage to your residential property or residential land first occurred on or after 1 July 2024, your claim for natural hazard damage must be made to the Natural Hazards Commission
The NHI New Zealand claim time limits are:
- Three months after the date of the earliest damage caused by natural hazard, for a standard claim
- Two years after the date of the earliest damage caused by the natural hazard, for extended claims
Under the legislation, the Natural Hazards Commission must assess, decide and settle an NHI NZ claim as soon as practicable after it’s made. The Natural Hazards Commission may also decline an NHI New Zealand claim.
How Shine Lawyers can help
At Shine Lawyers New Zealand, we understand the unique complexity and challenges that can arise from natural hazards. Our team of experienced lawyers can:
- Investigate your claim
- Help engage experts on your behalf if you need to provide evidence of property damage
- Explain all options available to you
- Help you understand your entitlements
- Give you practical advice and help navigate the process of making a NHI NZ claim (or an EQCover claim, if the damage was caused prior to 1 July 2024)
- Review any offers you are made by the Natural Hazards Commission or your insurer, to ensure you receive your deserved entitlements
- Apply for a review of a decision made by the Natural Hazards Commission
- Represent you in the resolution of a disputed claim
We can also help negotiate the best outcome for you, outside of court proceedings.
Have you been affected by a natural hazard?
If you have been affected by a natural hazard and need help with your NHI NZ claim, contact Shine Lawyers New Zealand today. Our team is dedicated to helping you access your entitlements and right wrong.
