2026 March 17
Last year, we advised you that Fire & Emergency NZ (FENZ) was introducing a new funding model from 01 July 2026. Now that this is only a few months away, we wanted to provide a further reminder on what you can expect.
To recap, 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‑residential property (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.
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‑residential parts 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.
Source: firelevy - dia.govt.nz
If you have any questions about the FENZ changes, please contact your broker.