An analysis of damage costs to domestic property in the Mw 7.2 Inangahua, New Zealand, earthquake of 23 May 1968 (U.T.) has allowed the evaluation of the vulnerability of domestic property for six intensity zones, from MM5 - MM10 inclusive. For no other earthquake worldwide has the vulnerability of any class of property been examined in so many intensity zones, and the effect of brittle chimneys on damage levels has been fully evaluated for the first time. The relative vulnerability of one and two storey houses has also been evaluated. The costs of damage were derived from about 8,000 insurance claims to the Earthquake and War Damage Commission. Damage ratios were evaluated for houses and their contents as functions of Modified Mercalli intensity. The indicators of vulnerability that were determined were the statistical distributions and mean values of damage ratios and the percentage of property items damaged for the six intensity zones. Comparisons have also been made with results from studies of other earthquakes.