New Zealand’s Earthquake Commission (EQC) will not appeal against a High Court decision that its cover applies to boarding houses – a ruling that will cost the state-owned insurer about $NZ10 million ($7.95 million).

The EQC estimates another 30 properties will now be covered by the Earthquake Commission Act.

Last month, after two property-owners took the EQC to court over their six buildings, the court ruled boarding houses are residential sites and should be covered.

The commission had argued boarding houses are not residential properties under the Act, and it had published this in its guides on coverage.

EQC cover applies to the first $NZ100,000 ($794,500) of earthquake damage, before claims are passed to private insurers.