8 May 2026
From 1 July 2026, the way the Fire and Emergency levy is calculated is changing across New Zealand.
This levy is included in most insurance policies and helps fund Fire and Emergency services.
While the change to rates may appear small, the way it’s calculated is significantly different and that’s where many clients will notice an impact
You may see a change in your total insurance premium, even if your insurer hasn’t changed their pricing.
That’s because:
– The levy is now based more consistently on sum insured (replacement value)
– Different property types are treated differently
– Some previous grey areas are now clearly defined
Previously, levies were often based on indemnity or inconsistent valuation methods.
From 1 July 2026:
– Levies are calculated using your sum insured (replacement cost)
– This creates more consistency, but can increase levies for some properties
Different types of insurance are now treated separately, including:
– Residential property
– Commercial property
– Mixed-use buildings
– Contract works
– Goods in transit
This removes ambiguity, especially for mixed-use and complex risks.
– Residential levies still have caps
– Commercial property has no maximum levy
This means larger commercial risks may see noticeable increases.
– Moving to a flat $25 per vehicle, including third party cover
– This will now be more clearly shown in premiums
Lower rates now apply to:
– Forests
– Livestock
– Contract works (in some cases)
These reflect different risk profiles but won’t apply to most standard property risks.
Type of cover | Before | From 1 July 2026 |
Commercial property | ~0.1195%, often indemnity-based | 0.0776%, no cap, sum insured |
Residential property | 0.1195%, capped at $100 | 0.1074%, capped at $107.40 |
Contents | 0.1195%, capped at $20 | 0.1074%, capped at $21.48 |
Motor vehicles | ~$9.53 | $25 per vehicle |
Mixed-use | Often unclear | Defined rules based on use |
Contract works | Often treated as property | Separate rates apply |
Depending on your situation, you may notice:
– Premium increases, even if insurer pricing hasn’t changed
– Greater impact for:
o Commercial property owners
o Mixed-use buildings
o Construction or contract works projects
– More transparency in how your levy is calculated
We recommend:
– Review your sum insured
– Make sure it reflects accurate replacement costs
– Expect changes at renewal
Your next renewal may look different.
– Ask questions
If anything is unclear, we’re here to help.
These changes are industry-wide and driven by legislation.
If you’d like help understanding how this applies to your insurance, or want to review your cover, please get in touch with your Financial Adviser.
You can view official information here: https://www.dia.govt.nz/firelevy.