Key changes to the Earthquake Commission Act
What do recent updates to the Earthquake Commission Act mean for your insurance?
24 June 2019
The Earthquake Commission (EQC) has passed a series of changes to the natural disaster insurance scheme to increase coverage and improve making claims.
Including earthquakes, landslips, volcanic eruptions and more, EQCover is automatically available to homeowners with a home and contents insurance policy that includes fire.
When you renew your policy after 1 July 2019, the changes will give you:
Previously, you had three months to lodge a claim and now you have up to two years.
This extension allows you to more accurately assess the damage on your home, including any delayed effects of a natural disaster.
The extension will also make it easier to collect all evidence needed to support your claim.
Another feature of the latest changes is that the $100,000 cap on residential building cover claims has been raised to $150,000.
The updates also remove the $20,000 contents cover formerly provided. You may need to increase cover at your next renewal.
If your claim exceeds $150,000, your insurer may cover the extra costs depending on your policy. It is worth checking this with your insurer.
Improved access to relevant EQC information, including past claims and settlement amounts will also now be available. This will help you to confirm what EQCover includes.
These changes come in response to recent natural disasters experienced across the country and will take full effect from July 2020.
If you are having trouble obtaining insurance, you may be able to apply directly to EQC for cover.
Contact a Mike Pero Adviser to find out more about all your insurance options for your home and contents needs.