The NZ Fire Service levy can trap people and organisations who live overseas, according to that country’s largest broker organisation. Malcolm Congdon, CEO of the Corporation of Insurance Brokers of NZ, said the levy is payable on fire insurance policies that cover property in NZ, no matter where the ownership of that property lies. A residential and personal property levy is charged at a rate of 7.3 cents per $100 on the replacement value of the property to a limit of $100,000 for residential and $20,000 for personal property. A flat rate of $5.84 is charged for each vehicle weighing less than 3.5 tonnes. 

In the case of other property – for example, commercial property – the levy is payable at a rate of 7.3 cents per $100 of the sum insured. Where the contract provides for settlement of any claim on a basis more favourable than its indemnity value, or where there is no sum insured, the insured value will be regarded as the indemnity value if it is supported by a declaration or a valuation.