Vero Voice

The Fire Services Levy on your insurance is changing

18 May, 2017

The New Zealand Fire Service is mainly funded by a levy on home, contents, vehicle and commercial insurance policies.

Insurance companies like Vero collect the levy on behalf of the Fire Service Commission. It’s included in the cost of your insurance.

From 1 July 2017, the New Zealand Government is increasing the Fire Services Levy on insurance policies, to fund a more coordinated fire and emergency service.


How will this affect you?

If you insure property, residential contents, vehicles or boats with any insurer in New Zealand, you’ll notice an increase in the amount of the Fire Service levy charged on your premiums from 1 July 2017.

Events like the Kaikoura earthquake and the severe weather we have experienced recently show the importance of having sufficient insurance cover. But if you find these levies make it difficult to afford your insurance, there are a few things you could do to help.

For example, you could:

  • Add a voluntary excess
  • Check that your home is insured for the right value using the Cordell Calculator
  • Ask about discounts for monitored security and fire alarms, or for having two or more policies with us
  • Explore our range of flexible payment options

For personalised advice speak to your broker, or find a broker or adviser.

For more information on how the levy will be used, visit

How the Fire Service Levy will affect your policies

Home and contents insurance

For residential property and contents the levy has increased from 7.60c to 10.60c per $100 of cover, capped at $100,000 of cover for homes and $20,000 of cover for contents.

The maximum levy you could be charged is $106 for home policies, or $21.20 for contents, per year.

Motor vehicle insurance

For vehicles under 3.5 tonnes, the levy has increased per vehicle from a flat $6.08 per year to $8.45 per year. 

For heavier vehicles (over 3.5 tonnes) the levy is increasing from 0.076% of the vehicle’s sum insured value, to 0.106%.

Boat and trailer insurance

For boat trailers under 3.5 tonnes, the levy has increased from a flat $6.08 per year to $8.45 per year.

For boats, and boat trailers over 3.5 tonnes, the levy is increasing from 0.076% of sum insured to 0.106%.

Rural and commercial insurance

The levy has increased from 7.60c to 10.60c per $100 of insured indemnity value for all non-residential property and is uncapped.


Share icon

Share this page 

Keep reading

Vero Voice • 28 July 2016

These days many New Zealanders are turning to accommodation websites like Airbnb, hosting guests in their homes to gain a bit of extra income or assist with their mortgage repayments. 

Adam Heath

By Adam Heath
Executive General Manager, Insurance Solutions

The information in this article has been compiled from various sources and is intended to be factual information only. Full details of policy terms and conditions are available from Vero Insurance New Zealand Limited or your financial adviser. For advice on product suitability, please contact your financial adviser. While we take reasonable steps to ensure that the information contained in this article is accurate and up-to-date, it is subject to change without notice. Vero Insurance New Zealand and its related companies does/do not accept any responsibility or liability in connection with your use of or reliance on this article.