The new levy rules apply to policies that start (are entered into) or renew on or after 1 July 2026. Policies already in place before this date continue under current levy rules until renewal.
This information outlines the main levy changes affecting households and businesses. Actual levy amounts depend on the policies held. All levy amounts and rates shown are exclusive of GST.
Motor vehicles under 3.5t - Current levy is $9.53 per vehicle per year. New Levy from 1 July $25.00. Applies to all insured motor vehicles, including trailers specified on your policy and vehicles insured for third party only cover.
Home (residential building) - Current levy maximum of $119.50 per year. New Levy from July 1st Maximum of $107.40 per year.
Contents (household property) - Current levy maximum of $23.90 per year. New Levy from 1 July Maximum of $21.48 per year.
Motor vehicles - Levy moves to a flat $25.00 per insured motor vehicle per year. (Including trailers specified on your policy and vehicles insured for third party only cover). This may increase costs for light vehicles and reduce costs for heavier fleets.
Commercial/non residential property - Levy is now calculated using the sum insured shown on the policy, rather than indemnity or depreciated values. Impact will vary, costs can increase or decrease depending on insured values.
Contract works - Levy is now calculated using the sum insured shown on the policy with a lower levy rate applicable. Levy will vary dependent on the project stage and policy structure.
Aircraft - Levy now applies to insured aircraft used domestically that are not scheduled for international routes. This is a new cost.
Forests and livestock - Levy now applies to insured forests and livestock. This is a new cost.
Motor Vehicles - Currently vehicles under 3.5t have a flat rate of $9.53 applied per vehicle with heavy vehicles over 3.5t levied at a rate of $11.95c per $100 applied to the sum insured.
From 1 July 2026 all vehicles have a flat rate of $25 applied per vehicle.
This will result in the levy cost on light vehicles increasing and a significant reduction in the levy charged on heavy fleet vehicles.
Commercial property - Currently 11.95c per $100 of indemnity value (no maximum).
The levy changes from being calculated on the indemnity value (the depreciated replacement value) of a property to being calculated on the sum insured shown on the policy schedule.
To support this rule change FENZ have reduced the applicable rate down to 7.76c per $100 sum insured which is 65% of the previous rate.
Contract works - Currently the levy is charged on the build up of the sum insured required under the contract, after deductions relating to any allowable exemptions at a rate of 11.95c per $100 sum insured (no maximum).
The levy rate reduces to 3.88c per $100 sum insured and will be charged on the sum insured where it represents the completed value of works. The actual levy charged will be dependent on how the policy is structured, any exemptions that may apply and the duration of the contract works.
Residential contract works - If a home is being built and insured under a contract works policy, the levy is applied under the contract works levy rules, rather than standard home insurance rules, regardless of whether the completed building will be residential.
Aircraft - New levy of 7.76c per $100 of sum insured (maximum of $77.60 applies per aircraft on domestic routes).
Forests and livestock - 1.94c per $100 of sum insured (no maximum). The actual outcomes depend on policy structure, and insured values.
This scenario is affected by the levy changes and depends on how a property is classified, rather than applying a standard rate.
Insurance type: Mixed use buildings (residential and commercial).
What to know: The levy is based on how the building is mainly used (residential or commercial), determined by the majority of the occupied floor area.
If 50% or more of the building is residential, the residential levy rate of 10.74c for every $100 sum insured and per dwelling cap of $107.40 will apply.
If less than 50% is residential, the full commercial levy rate of 7.76c for every $100 sum insured applies with no cap.
Owners can now provide a registered valuation to accurately split residential and commercial sums insured, supporting a split calculation to reduce the impact of the levy.
For more information visit: https://www.fireandemergency.nz
