Update on FENZ levies

CandRTest
2 days ago
2 min read

Fire & Emergency NZ (FENZ) are introducing a new funding model from 01 July 2026.

FENZ levies are being restructured away from a ‘transitional’ model to a more permanent solution that is designed to align with the modern operating role of FENZ. It is doing this by better apportioning costs to reflect the services provided to different property types. For example, vehicle levies are changing to better reflect the higher rate of vehicle-related incidents that Fire & Emergency attend.

The FENZ levy is charged on residential property (eg home, contents, private cars etc) and non-residentialproperty (eg commercial buildings, mobile plant, company assets and vehicles etc) wherever these are insured against fire. A few items are exempt from the levy under the Fire and Emergency New Zealand (Levy) Regulations 2024.

New rates and caps on levies

The new rates and caps on levies are as follows –

1. Motor vehicle insurance:

• A flat fee of $25 will apply to all motor vehicle insurance policies, regardless of vehicle weight, type, or value. This will particularly benefit those with vehicles over

3.5 tonnes who typically paid a higher rate. The levy will now also apply to Third Party policy types.

2. Homeowners

• Will now pay a maximum levy of $107.40 on a residential property, with the maximum amount to pay on a contents policy being $21.48. This is a slight decrease from 2025.

3. Commercial property

• The levy for commercial buildings and other assets is currently based on the indemnity value of the premises, which may be substantially less than the sum insured. The levy will now move to being based on the full sum insured.

4. Mixed use property:

• Residential and non-residentialparts of the same property can be levied separately depending on the proportion of residential use and whether a registered valuation is provided.

• It is important that you advise your broker where any part of your premises has residential accommodation – as this could increase the complexity of the final levy calculation, potentially raising costs for landlords or businesses in mixed-use buildings.

Summary of changes

Below is a summary of the rates and cap amounts for each category of insurance-

Insurance type	Rate / Fee	Cap / Amount
Motor vehicles (all policy types)	Flat fee of $25 p.a.	Flat fee
Residential property (homes)	10.74 cents per $100 sum insured	Cap of $107.40 p.a.
Home contents (personal property)	10.74 cents per $100 sum insured	Cap of $21.48 p.a.
Non-residential property	7.76 cents per $100 sum insured	No cap
Contract works policies	3.88 cents per $100 sum insured	No cap