How the loss is split
The commercial weight of the trend comes from where the loss lands. Under the Natural Hazards Insurance Act 2023, which took effect on July 1, 2024, and replaced the Earthquake Commission Act 1993, the scheme provides first-loss residential building cover of up to $300,000 plus GST, with any damage above that met by the homeowner’s private policy. For storm and flood events the commission covers residential land only, leaving building damage to the private insurer. Land cover generally applies to the area within eight metres of the home, retaining walls are covered to a maximum of $50,000 plus GST per dwelling, and bridges and culverts to $25,000 plus GST. ICNZ has said rising construction costs mean more claims breach the cap, transferring a larger share of each loss to private insurers.