FENZ levy rates set to increase

1 July 2024

Fire and Emergency New Zealand (FENZ) levies increase on 1 July 2024. Fire insurance contracts entered into on or after 1 July 2024 will be subject to the increased levy rates.


The FENZ levy scheme provides nearly 100% of the funding for the operations of FENZ. Levies are payable on all contracts of insurance against the risk of fire where assets in New Zealand are covered. In 2023 the Government announced its decision to increase the transitional levy on insurance policies by 12.8%, effective from 1 July 2024.  

What the increase will mean for policyholders                                    

Policyholders who enter into contracts of fire insurance on or after 1 July 2024 will be required to pay increased levies under the Fire and Emergency New Zealand (Levy Rates and Information Requirements in Transitional Period) Amendment Regulations 2023.  

From 1 July onwards, the levy payable on contracts of fire insurance will increase:

    • From NZ10.6 cents per annum to NZ11.95 cents per annum for every NZ$100 of the amount for which the property (residential, personal and other) is insured for the period of the contract of fire insurance.
    • From NZ$8.45 per motor vehicle to NZ$9.53 per motor vehicle weighing less than 3.5 tonnes.

The maximum levy payable on residential buildings will increase from NZ$106 to NZ$119.50, and the maximum levy payable on residential contents will increase from NZ$21.20 to NZ$23.90.

The increase will not apply to contracts entered into before 1 July 2024.  For those contracts, the current levy rates will continue to apply.

If you have any questions about the matters raised in this article, please get in touch with the contacts listed or your usual Bell Gully adviser.

Disclaimer: This publication is necessarily brief and general in nature. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.