Fire and Emergency New Zealand (FENZ) levy changes - 2026
From 1 July 2026, changes to the Fire and Emergency New Zealand (FENZ) levy come into effect. The FENZ levy is a government charge collected through insurance policies to help fund New Zealand’s fire and emergency services.
These changes are being applied progressively as insurance policies renew, new policies are taken out, or existing cover is changed after that date. This page provides background information so you can better understand what the changes are and how they might apply to your insurance.
What’s changing?
1. Property insurance – levy calculated on sum insured
For most property policies, the levy will now be calculated based on the sum insured shown on the policy, rather than alternative valuation methods. This makes it more important than ever that sums insured accurately reflect the value of what is being covered.
2. Different treatment for residential and non‑residential property continues
Residential and non‑residential properties will continue to be levied at different rates. Residential properties will remain subject to a levy cap, while non‑residential properties will not.
Mixed‑use properties may be apportioned between residential and non‑residential portions where appropriate information is available.
3. Motor vehicles moves to a flat levy
All motor vehicles, both private and commercial, will attract a flat $25 FENZ levy per vehicle, regardless of weight or cover type. This includes vehicles insured for Third Party Only.
4. Changes to what the levy applies to
Some items that were previously exempt may now attract a levy, while others no longer do. For example:
Certain items such as livestock, forestry and growing crops may now be levied
Boats will no longer attract a FENZ levy
How and when will this affect your policy?
The updated levy rules apply from once policy renews on or after 1 July 2026 or when a new policy is taken out after that date. Because of this, the impact will be spread over a full 12‑month period as policies naturally renew.
Will my insurance cost change?
Depending on the type of insurance you hold and the sum insured, the levy applied to your policy may increase, decrease, or remain largely unchanged. The levy itself is a government charge, and any change is not an insurer or adviser decision.
Why sum insured matters more now
Because the levy is now linked more closely to sum insured for property policies, setting appropriate cover values is increasingly important. Over‑ or under‑insurance can affect:
Premiums and levies
The outcome of a claim
Confidence that your cover genuinely reflects your exposure
This is where advice and regular review can make a meaningful difference.
How we help
We’ll apply the correct FENZ levy automatically as part of your policy renewal or update. Our role is to help you; understand how the levy applies to your insurance and ensure your sums insured remain appropriate. While our team can’t change the levy and how it’s calculated a key focus of our team’s role is to help answer questions as these changes roll through over the next 12 months.