The levy, collected by insurers on behalf of the Government, helps ensure the NHC is funded to provide basic cover for natural disasters such as earthquakes, landslides and flooding.

"Keeping the levy unchanged for now is good news for households facing ongoing cost-of-living pressures," ICNZ Chief Executive Kris Faafoi said.

"We welcome the Government’s decision and the importance of keeping insurance accessible. Taxes and levies already account for around 40% of a home premium."

A recent survey found that 50% of respondents were unwilling to pay $200 more a year to ensure the NHC was properly funded, with 30% willing to pay more.

Mr Faafoi said the NHC continues to play a vital role in supporting recovery when disasters strike.

"New Zealand is one of the most natural hazard-prone countries in the world, and climate change is making these events more severe and intense. The NHC remains a critical component in our ability to recover," he said.

"We acknowledge the Government is balancing the ongoing sustainability of the NHC Scheme alongside the equally important goal of keeping costs manageable for households today.

"ICNZ has continually emphasised that the best way to manage long-term accessibility is to reduce risk across communities before disaster strikes.

"The Government’s National Adaptation Framework provides much-needed direction on how government, councils, the private sector and communities will work together to reduce and manage climate-related risks. However, we need clear rules, funding arrangements and responsibilities locked in quickly so that adaptation can move from paper to real projects on the ground.

"By reducing risk, we protect our communities and ensure insurance remains accessible."