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Police Home Insurance premium rates will be increasing from 1 October 2022.

Why are my premiums increasing?

Home premiums have been affected by an increase in the number and severity of weather events as well as various claims cost factors, including global supply chain constraints and an increase in cost of materials, leading to an increase on the cost of repairs. 

A summary of primary factors affecting the upcoming home insurance rate change can be found below.  



Standalone affect

EQC changes

Levies have increased due to the 1 October EQC cap change. 

The maximum EQC levy will increase from $300 (+GST) to $480 (+GST)

Indexation increases

Sums insured have increased to support increased costs of goods and services

This has increased the sum insured you are covered for


Reinsurance costs associated with the 1 October EQC change have been updated.  

This has changed premiums on homes to varying extents depending on how high the seismic risk is.

Natural perils 

The amount and severity of weather events is increasing.  

NZI increased the allowance for future events which is impacting premiums.   


The frequency of weather events and the cost to repair homes is increasing. 

This has increased premiums on home policies

Helpful resources

We have prepared a number of helpful resources to help you understand the full scope of changes.

General FAQs - Home Insurance Premiums

How premiums are calculated

Insurance premiums are reviewed and calculated each year to account for any changes to the cost of providing cover. These reviews ensure you pay a fair and sustainable price for your insurance, so we can continue protecting you when things go wrong or when disasters strike.

There are several factors which can impact the amount you pay for insurance. These include things like where you live, the construction and age of your home and the increasing number of extreme weather events due to climate change. Costs to rebuild and repair homes have also significantly increased, which impacts claims costs and premiums.

Protecting your property is important, so if you’re feeling stretched, there are ways to lower your premium while staying insured, including the amount you are prepared to cover yourself (your excess). Please talk to the Insurance Team about ways to save.

Knowing the total cost to rebuild your home is important. To help you get a more accurate sum insured, check the amount it would cost to rebuild your house with our home building calculator on our website, or seek professional advice from a registered valuer or quantity surveyor like Construction Cost Consultants, who can offer insurance-based replacement values for your property.

What makes up your insurance premium

This is what you pay to NZI for covering your house or contents. To calculate the portion of your premium NZI work out the expected cost to replace or repair belongings and houses, along with the cost of doing business, changes in demand and cost of labour, materials, and transport which can affect how much it costs to pay everyone’s claims. Plus, the number and type of claims made in previous years and what is expected to happen in the future is accounted for too. Our changing climate means we’re facing increased numbers and severity of storms and floods as we have seen across Aotearoa in the last year.

The Fire and Emergency Levy

This levy covers most of the work that Fire and Emergency New Zealand does, including putting out fires. NZI apply this levy on insurance premiums, which we then pay in full to the Government.

The Earthquake Commission (EQC) Levy

One of the major factors in your premium change this year is Earthquake Commission (EQC) changes. The EQC provides limited cover for natural disasters including earthquakes, landslips, volcanic eruptions and tsunamis. This cover is paid for by a levy NZI apply to insurance premiums, which NZI then pay in full to the Government. This year the maximum EQC levy and cover amounts are increasing, and this may impact the amount you pay. You can learn more about the EQC changes at


Insurance companies also need insurance, called ‘reinsurance’, which is often provided by specialist insurance companies. Reinsurance helps to cover the cost of all claims if there’s a major disaster such as an earthquake or large weather event like the recent Nelson floods. A portion of your premium goes towards meeting reinsurance costs.


GST is charged on all of the elements that make up your premiums. As the some of these elements are increasing this year, you will also be paying more GST.

Police Fire & General Insurance: Exclusively for PWF members and their families. Arranged by PWF General Insurances Limited and underwritten by NZI, a business division of IAG New Zealand.