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Public Liability

Protects you if a visitor is injured at your tiny home or you accidentally damage someone else's property.

Public liability insurance protects you if a visitor or member of the public is injured at your tiny home, or if your property accidentally causes damage to a neighbour's building, vehicle, or belongings. This cover is essential for every tiny home owner — whether you're living full-time in your own home or renting it out. A single accident (a guest slipping on a wet step, a fire spreading to a neighbour's property, your THOW rolling and hitting another vehicle) could expose you to a six-figure legal claim. Public liability insurance provides both the legal defence and compensation costs, ensuring a single incident doesn't devastate your finances.

About Public Liability

Public liability insurance covers two main categories: bodily injury (a visitor is injured at your property) and property damage (your property accidentally causes damage to someone else's). The policy pays for legal costs (defending a claim, court fees, lawyer's fees) and compensation payments (medical costs, lost income, ongoing care, pain and suffering for injuries; repair or replacement costs for damaged property).

For a tiny home owner, common public liability scenarios include a guest tripping on a step and fracturing an ankle, a spark from your fireplace or wood burner spreading to a neighbour's building, a fire inside your home that spreads to adjacent structures, a THOW breaking loose and hitting another vehicle, water damage from a burst pipe affecting a neighbour, or a guest being injured by a defect in the property that you should have known about and fixed.

The key protection is that the insurer covers the cost of defending the claim, even if the claim turns out to be frivolous or unfounded. This legal defence cost alone can exceed $50,000. Without insurance, you'd pay these costs yourself while waiting for the claim to be resolved.

Public liability is typically quoted on a per-incident limit (e.g., $5 million per incident, $10 million aggregate) and an annual premium. For most tiny home owners, a $5 million per-incident limit is appropriate. This seems high, but if a guest is seriously injured and requires ongoing care costing hundreds of thousands of dollars, a $5 million limit may be fully exhausted.

For THOW owners at campgrounds or parks, public liability is especially important. If your home breaks free from its moorings and hits another THOW or a vehicle, you're exposed to significant liability. Campgrounds and holiday parks often require proof of public liability cover before they'll allow you to site there — some require minimum limits of $2 million.

Who Needs This Cover

✓All tiny home owners
✓Tiny home owners hosting Airbnb or short-stay guests
✓THOW owners at campgrounds and holiday parks
✓Tiny home village residents
✓Off-grid property owners with visitors

What It Covers

✓Visitor injury on your property
✓Accidental damage to neighbours' property
✓Legal defence costs
✓Compensation payments
✓Fire or water damage to adjacent properties
✓Liability as a landlord (short-stay or long-term)

What's Typically Not Covered

Every policy is different — always read your policy wording. These are common exclusions across most standard policies:

✗Injuries to people who live in your home (family or paying tenants) — these are covered under ACC or employment law, not public liability
✗Damage to your own property (covered under building and contents insurance)
✗Claims arising from your own business (unless you have a home-business endorsement; then business liability applies)
✗Intentional injury or assault (liability for criminal acts is typically excluded)
✗Liability arising from extreme criminal negligence (e.g., knowingly allowing a dangerous condition and a visitor is injured)
✗Contractual liability (e.g., you signed a contract with a builder and they sue you for non-payment — this isn't covered)
✗Claims from a defect in something you sold (product liability — separate from public liability)
✗Professional liability (if you give advice in your professional capacity and it causes loss)
✗Fines or penalties imposed by a court or regulator

The New Zealand Context

In New Zealand, the Health and Safety at Work Act 2015 places duties on occupiers (property owners and occupiers) to ensure their property is safe for visitors. This means you have a legal responsibility to:

- Maintain safe access and egress (safe steps, handrails, non-slip surfaces) - Ensure the property is free from hazards (broken glass, exposed wiring, unstable structures) - Warn visitors of any known hazards (e.g., an uneven floor, a low-hanging beam in a tiny home) - Maintain plumbing and electrical systems in safe condition

If a visitor is injured because you failed to meet these duties, they can sue you for damages. The Health and Safety at Work Act also provides for regulator investigation; in extreme cases, a failure of duty can lead to prosecution.

The Residential Tenancies Act (if you rent out your tiny home) requires you to keep the property in good condition and safe for tenants. Public liability insurance doesn't cover intentional breach of tenancy law, but it does cover accidental injury on the property. Separate landlord insurance (which includes public liability) is more appropriate for rental tiny homes.

The Building Code sets standards for construction, but tiny homes — especially those built before 2023 under the small-dwelling exemption — may not fully comply with current Code standards. Compliance status can affect insurance underwriting. A non-compliant tiny home isn't automatically ineligible for public liability, but the insurer may require specific conditions or load the premium.

How to Choose the Right Cover

Public liability is straightforward to choose: ensure it's included in your tiny home insurance package at an appropriate limit. For most owner-occupied tiny homes, $5 million per incident is standard. For THOW owners at campgrounds, check whether the park requires a specific limit and ensure your policy meets or exceeds it.

If you're renting out your tiny home (long-term, Airbnb, or short-stay), ask your adviser whether your personal public liability cover extends to rental use, or whether you need a separate landlord liability endorsement. Rental use typically requires separate cover or an explicit endorsement.

If you have a home-based business, confirm whether your public liability extends to business-related visitors (clients, contractors) or whether you need a separate home-business endorsement.

Ask your adviser to explain what "claims-made" versus "occurrence" cover means. Occurrence-based policies (preferred) cover incidents that happen during the policy year, regardless of when you claim. Claims-made policies cover claims made during the policy year, even if the incident happened years earlier. Most tiny home public liability is occurrence-based.

Finally, understand whether your cover is provided by a single insurer or arranged through a broker network. If arranged through a network, ensure the insurer is regulated by the Financial Markets Authority (FMA).

Speak to a Specialist →

Frequently Asked Questions

A guest slipped on my THOW's wet step and injured her ankle. What do I do?

Immediately notify your insurer in writing (email is fine). Provide details of when the incident occurred, where exactly (the step), what caused the slip (wet surface), who was present, and any injury treatment that occurred. The insurer will assign a claims manager who will investigate. Don't admit fault, and don't offer to pay for medical costs directly (the insurer will manage this). The insurer will defend the claim if the guest sues. This is exactly what public liability is designed to cover.

My THOW is parked at a holiday park that requires proof of $2 million public liability cover. My policy is $5 million. Do I need to upgrade?

No. A $5 million limit exceeds the park's requirement of $2 million. When you site your THOW at the park, provide a copy of your policy schedule (or a certificate of currency from your insurer) showing the public liability limit. The park should accept this. Make sure the policy clearly states it covers THOW and camping/park site occupancy.

I rent out my tiny home on Airbnb. Does my existing public liability cover rental guests, or do I need landlord insurance?

Standard personal public liability typically excludes or restricts coverage for rental occupants. For Airbnb or short-stay rental, ask your insurer whether your current policy can be endorsed to cover rental guests, or whether you need a separate landlord liability or rental property endorsement. Some insurers treat short-stay rental (Airbnb) differently from long-term tenancy (covered under residential tenancy law). Clarify this with your adviser — rental income changes your risk profile.

What's the difference between public liability and landlord liability?

Public liability covers injury to visitors/public and accidental property damage. Landlord liability (part of landlord insurance) covers the same, plus additional protections for rental properties: loss of rental income if the home is damaged, tenant-caused damage beyond normal wear and tear, legal costs for tenancy disputes, and rent default by tenants. If you're renting out your tiny home, you need landlord cover, not just personal public liability.

Related Coverage Types

Most tiny home owners combine public liability with one or more of the following:

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