From the 1st of July the compulsory Fire Service Levy, which insurers collect on behalf of the Government via your insurance premiums, has increased.
This means after 1st July new and renewing tools, vehicle, contract works and other property insurance will incur this additional charge. Extensions to existing contract works project policies will also be charged at the new higher rate.
The government is merging the NZ Fire Service with volunteer and rural fire services to establish a single, unified organisation, Fire & Emergency New Zealand. This merger will be partially funded by an increase in the Fire Service Levy (FSL). The FSL is the main source of funding for New Zealand's firefighters and private insurers have collected the levy on behalf of the Government since 1975.
The FSL shows as an additional charge on the premium invoices of all home and contents, motor vehicle and commercial property insurance policies, including contract works insurance.
From the 1st of July the FSL component of the insurance premiums for these policies will increase by 40%.
How much extra will you pay?
Residential homes: FSL increases from $76 to $106 per dwelling
Residential contents: FSL increases from $15.20 to $21.20 per policy
Motor vehicles less than 3.5T: FSL up from $6.08 to $8.45 per vehicle
Commercial property (including tools & contract works): FSL rates increase from 7.60 cents to 10.60 cents per $100 insured