How much do you pay

Currently, the Fire Service Levy is charged at 7.6c per $100 of cover. This is set to increase to 10.6c per $100 from 01 July 2017. Both these figures are GST exclusive.   For domestic properties, the levies are currently capped at $15.20 plus GST ($17.48 including GST) for Contents and $76.00 plus GST ($87.40 inclusive) for dwellings. These caps will increase to $21.20 ($24.38) and $106.00 ($121.90) respectively. This means that virtually every household in New Zealand will need to pay an additional $41.40 each year to fund these increases and this is before the increase in Earthquake Commission levy set to come into force from 01 November which will add a further $69.00 to the household insurance bill.   For commercial properties, the Fire Service levy is currently calculated on indemnity value. The new legislation will move this to the full sum insured which will have an even larger effect on the owners of commercial properties. The full sum insured is generally higher than the indemnity value and often significantly higher. Not only will the insured have to fund a 40% increase in the Fire Service levy rate, but also the increase resulting from a higher base.   For motor vehicle under 3.5 tonne, a flat levy of $6.08 per vehicle is currently charged where cover includes the peril of fire (ie., Comprehensive Policies and those covering Third Party, Fire and Theft or Theft only). This will increase to $8.45. and will be extended to include vehicles insured for third party property damage only. Again, these amounts are GST exclusive.