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How upcoming changes may affect you

We wanted to give you an early heads up about an upcoming change that will affect many insurance policies across New Zealand.

From 1 July 2026, the Fire and Emergency New Zealand (FENZ) levy will change. This levy is a government-set charge applied to certain insurance policies and insurers collect it on behalf of Fire and Emergency New Zealand. The levy helps fund the emergency services that protect communities across the country. While the levy will continue to serve this purpose, the structure and pricing are changing, which may affect the cost of some policies when they start or renew on or after 1 July 2026.

Our goal is to help you understand what’s changing and what it may mean for your cover.

What’s changing?

The government is introducing a new levy structure across property and vehicle insurance.

While the levy structure is changing, the way it is calculated is also being updated. As a result, the total levy included in your premium may increase depending on the type of cover you have.

Policy Type

Current Rate (to 30 June 2026)

New Rate (from 1 July 2026)

Cap / Limit Change

Residential Home

Current Rate (to 30 June 2026): 11.95c per $100

New Rate (from 1 July 2026): 10.74c per $100

Cap / Limit Change: Max $107.40 (was $119.50)

Contents

Current Rate (to 30 June 2026): 11.95c per $100

New Rate (from 1 July 2026): 10.74c per $100

Cap / Limit Change: Max $21.48 (was$23.90)

Light Vehicles
(< 3.5T)

Current Rate (to 30 June 2026): $9.53 flat fee

New Rate (from 1 July 2026): $25.00 Flat Fee

Cap / Limit Change: $15.47 increase

Heavy Vehicles
(> 3.5T)

Current Rate (to 30 June 2026): 0.1195% of Sum Insured

New Rate (from 1 July 2026): $25.00 Flat Fee

Cap / Limit Change: Significant saving for heavy fleets

Commercial Property

Current Rate (to 30 June 2026): 11.95c per $100

New Rate (from 1 July 2026): 7.76c per $100

Cap / Limit Change: No Maximum Cap

Important changes for commercial property owners

The new 7.76c rate for commercial property is lower than the current rate, but it is now applied to the full replacement value reinstatement cost) of the building rather than the depreciated value. This has 2 key impacts:

  • Higher base rate: Because rebuilding costs are significantly higher than depreciated market values, the total levy payable will likely increase for many commercial properties.
  • No maximum cap: There is no maximum cap on the levy for commercial property. The levy is charged at 7.76c for every $100 of the building’s full replacement value, so higher-value buildings will pay more levy.

Important details

Timing

The changes apply to all policies starting or renewing on or after 1 July 2026.

Motor Vehicles

All vehicles, including third party only policies, will move to a flat $25 levy per vehicle.

Mandatory charge

The FENZ levy is set by the government. Insurers collect it and pass it on to Fire and Emergency New Zealand in full.

We’re here to help

Changes like this can be a good opportunity to review your insurance and make sure your cover still fits your needs.

At Blanket, we can help with a full range of cover including:

  • Home and contents insurance
  • Landlord insurance
  • Vehicle and fleet insurance
  • Commercial property and business insurance
  • Management liability, cyber, and professional indemnity insurance

If you’d like to review your cover or talk through how these changes could apply to you, please contact your broker or call our main line on 0508 252 653.