What is an EQC claim and does it cover builder repairs?
Short answer
EQC (the Earthquake Commission, now branded NHC Toka Tū Ake) covers the first portion of damage to residential property caused by natural hazards — earthquakes, landslips, volcanic activity, tsunami, hydrothermal activity. Coverage is currently capped at $300,000 + GST per event per home for buildings. Above the cap, your private insurer takes over. After an event, EQC settles directly with you or your insurer; the builder gets paid via the settlement, not by EQC directly.
Source: Earthquake Commission Act 1993. Updated May 2026.
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Check a builderKey facts
- EQC covers earthquake + other natural hazards listed
- Building cap: $300,000 + GST per event per home
- Funded by Natural Hazards levy on your home insurance
- Excess applies (currently $400-2,000 depending on cover)
- Your private insurer handles claims above the cap
How it works
You pay the NH levy automatically through your home insurance premium. If a natural hazard event damages your home, you lodge a claim with EQC (or your insurer, who notifies EQC). EQC assesses and settles up to the cap; your private insurer covers anything above.
Settlement can be cash to the homeowner or 'managed repair' where EQC/insurer arranges the build. The Canterbury 2010-2011 earthquakes ran for a decade with mixed outcomes — cash settlement gave homeowners more control; managed repair sometimes left ongoing defects.
If you're hiring a builder for EQC work
Make sure the scope of repair matches the EQC scope. If you want to upgrade beyond like-for-like, that's a 'betterment' and you pay the difference.
Get separate signoffs on the EQC scope and any upgrades. If something goes wrong later, the distinction matters for warranty and contribution claims.
Knowing the rules is half the job. The other half is knowing who you're hiring. Check any NZ builder against the public record: company status, licensing and insolvency notices, from the official NZ sources.
Related questions
Sources: Earthquake Commission Act 1993; Natural Hazards Insurance Act 2023. General information for NZ homeowners, not legal advice. Building rules change and vary by council, so confirm critical details on the official source before acting. Last updated 2026-05.