Is land covered by insurance?
New Zealand is unique for many reasons, but one insurance related reason that stands out is all insured residential dwellings (with fire insurance as a minimum) have automatic access to land cover; something that is not available to homeowners anywhere else in the world.
Cover for land is provided by the New Zealand Government via Toka Tū Ake EQC. However, the Toka Tū Ake EQC cover comes with limitations regarding the location of the damaged land in relation to the home itself, the natural hazard that has caused the land damage, and the purpose for which the land is used. There are also limits around the amount that a claim can be settled for.
What isn’t covered by Vero?
Like all other insurers, Vero does not provide any cover for land. Land is not included in the policy definition of ‘home’ and is also specifically excluded by certain policy exclusions.
What is and isn’t covered by Toka Tū Ake EQC?
Toka Tu Ake EQC provides cover for land located at the insured property if it is impacted by a natural disaster event, specifically arising from:
Storm (Fact: Toka Tū Ake EQC doesn’t cover homes for storm damage, just the land)
Flood (Fact: Toka Tū Ake EQC doesn’t cover homes for flood damage, just the land) or,
- Fire resulting from any of the above
For there to be cover, the damaged land must be located within at least one of the following areas:
Directly under the home or any outbuildings covered by Toka Tū Ake EQC
Within eight metres of the home and those outbuildings
- Under or supporting the main accessway (up to 60 metres from the home)
Toka Tū Ake EQC will also cover the following land structures:
Bridges and culverts within the above areas
Retaining walls within 60 metres of the home that are necessary to support or protect the home, outbuildings, or land that is covered by Toka Tū Ake EQC.
Toka Tū Ake EQC’s maximum liability for land damage is the lesser of either:
The market value of the relevant area of land, or
The repair or reinstatement costs of the relevant areas of land
Toka Tū Ake EQC’s maximum liability for damaged land structures such as bridges, culverts and retaining walls is the indemnity value of that structure. Indemnity value is a valuation that considers the structure’s age and condition.
An excess of 10% of the value of the land claim applies, up to a maximum of $5,000.
You can find more information within the Householders’ Guide to EQCover for Residential Land (PDF).
Disclaimer – The information on this page is of a general nature only, intended to provide guidance about how your claim may be managed. The steps which will be taken to manage your particular claim will depend upon your individual circumstances and your policy wording. Please refer to your policy wording for full details of your insurance cover. If in doubt about what you should do, speak to your Broker or contact Vero on 0800 800 134.