Park Home & Relocatable Home Insurance NZ

Park homes and relocatable dwellings occupy a fascinating and often misunderstood corner of the New Zealand housing market. For thousands of Kiwis — retirees, downsizers, first-home workarounds, and rural lifestyle seekers — a park home represents an affordable and practical housing solution. But when it comes to insurance, park homes come with a unique set of challenges that mainstream insurers are often poorly equipped to handle.

What Is a Park Home?

A park home (also known by various names including **relocatable home**, **manufactured home**, or historically "mobile home") is a factory-built dwelling constructed on a steel chassis. Unlike a tiny home on wheels, which is typically owner-built or custom-built to order, park homes are manufactured in a factory setting to a standardised design and then transported to a site.

Key characteristics of NZ park homes:

- **Built in a factory** on a steel chassis, transported to the site as a complete unit (or in sections for larger models)

- **Typically 50–100m²** in size — larger than most tiny homes on wheels, closer to a standard residential unit in floor area

- **Designed for permanent siting** — not intended for regular road travel like a caravan or THOW

- **Skirted and connected** — most park homes have skirting around the base (concealing the chassis), and permanent connections to mains power, water, and (usually) sewerage

- **Steel chassis retained** — unlike a house with a concrete foundation, the chassis remains under the home and is the primary structural element

New Zealand has an estimated **10,000+ park homes** in use, ranging from basic 1970s and 80s units in established holiday park communities through to high-specification modern relocatable homes that rival conventional construction in quality and finish.

Park Homes vs Caravans vs Tiny Homes

The insurance market treats these three categories differently, and understanding why helps you frame conversations with your adviser:

Caravans are designed for road travel and temporary accommodation. They're insured as vehicles/recreational assets and typically have lower sum-insured limits, coverage for a wide range of campsites and locations, and specific provisions for seasonal storage.

Tiny homes on wheels (THOWs) are custom-built dwellings on trailer chassis — primarily designed for permanent or semi-permanent residential use. They sit between caravan and dwelling in the insurance market and require specialist treatment.

Park homes are intended to be permanently sited. They rarely move once installed. They're larger than THOWs, have more permanent connections, and are designed for continuous year-round residential occupation. Despite the chassis underneath them, park homes are much closer to a conventional house in their intended use — and should (ideally) be insured closer to how a house is insured.

The challenge: mainstream house insurers see the steel chassis and the non-fixed-foundation status and treat the home as a non-standard construction risk they'd rather decline.

Why Mainstream Insurers Often Pass

Several features of park homes trigger mainstream insurer declines or restrictions:

The steel chassis construction is the first hurdle. Mainstream home insurers categorise construction types as timber frame, masonry, or "non-standard" — a park home on a steel chassis falls into the latter category, which may trigger either a decline or a significant premium loading.

Being manufactured off-site raises concerns with some insurers about build quality. New park homes from established manufacturers are typically built to a high standard and comply with the relevant New Zealand standards (NZS 3604 and others), but older or imported homes may have uncertain construction quality.

The leasehold land arrangement compounds the problem. In holiday park communities and lifestyle villages, residents typically own their home but **lease the land** from the park operator under a site licence. Some insurers are only comfortable insuring improvements to land where the owner has freehold title. The home can't be mortgaged (banks need security over land as well as improvements), which also affects how insurers view the property.

The age of the dwelling is another factor. Park homes built in the 1970s, 80s, and 90s may have older insulation materials (some now known to be problematic), ageing plumbing, and outdated electrical systems. Many mainstream insurers apply age-based restrictions — homes over 20 or 25 years old may be difficult to insure with mainstream providers.

What Happens If the Park Closes?

One of the most important insurance considerations for park home owners in site-lease arrangements is what happens if the park or lifestyle village closes or redevelops.

Park home residents are protected under the **Residential Tenancies Amendment Act 2019**, which brought relocatable dwelling residents within the RTA's protections. Key rights include:

- Written site licence agreements

- Notice periods before eviction (up to 90 days in some circumstances)

- Compensation entitlements for forced relocation

The RTA protections help, but they don't fully compensate for the cost and disruption of moving. This is where transit insurance becomes critical — if a park closure forces you to relocate your home, the insurance question is whether the transit move is covered.

If your home is uninhabitable or you've been forced to vacate your site during a relocation process, some specialist policies include cover for alternative accommodation costs or site fee equivalents during the displacement period.

The Core Components of Park Home Insurance

Genuine comprehensive park home insurance should address:

Building and structure cover

The home itself at full reinstatement cost — shell, cladding, roof, windows, doors, plumbing, electrical, and permanently installed fittings. This should include the steel chassis as a structural element.

Contents insurance

Personal belongings inside the home. Standard contents cover is similar to that available for conventional homes, but check for any restrictions related to the dwelling type.

Public liability

Protection if a visitor is injured at your property or if your home causes damage to neighbouring properties (for example, fire spreading, or a structure collapse). When you're in a park with neighbours in close proximity, public liability is particularly important.

Transit cover

Essential for relocations — whether planned moves to better sites, forced moves due to park closure, or emergency relocations. Transit cover should include damage during loading, towing, and unloading, as well as recovery costs if something goes wrong mid-move.

Loss of use

If your home is uninhabitable due to an insured event, temporary accommodation costs. This is especially important for residents with no alternative accommodation options.

How Age Affects Park Home Insurance

Age is one of the most significant factors affecting park home insurability. The insurance market's approach:

Homes under 15 years old are generally the most insurable with specialist providers. Modern manufactured homes meet current standards, have warranties from manufacturers, and have relatively recent electrical and plumbing systems.

Homes between 15 and 25 years old are increasingly complex. Some insurers decline; others will underwrite with conditions (e.g., requiring an electrical inspection within the last three years). Replacement cost cover may give way to agreed value or market value cover.

Homes over 25 years old are the most challenging to insure. Some specialist insurers will still write these risks, but with significant conditions around inspection requirements, exclusions for pre-existing conditions, and market value (rather than replacement cost) settlement terms.

Replacement cost vs agreed value vs market value:

- **Replacement cost** — insurer pays the cost of rebuilding/replacing with a new equivalent. Best outcome for the insured.

- **Agreed value** — you and the insurer agree on a fixed value at policy inception. This is often the best achievable outcome for older park homes where replacement cost is difficult to determine.

- **Market value** — insurer pays what the home would have sold for on the open market at the time of loss. For an older park home in a leasehold park, this can be significantly less than what it would cost to replace.

Getting a written valuation from a specialist who understands park home values is advisable for older homes.

Park Home Communities Around the Country

Park homes exist across a spectrum of communities in New Zealand:

Lifestyle villages are purpose-built, retirement-oriented communities with modern facilities (swimming pools, community centres, bowling greens). Often operated by national operators like Summerset, Ryman, or smaller regional operators, they generally have professional park management and well-maintained infrastructure.

Many holiday parks have a proportion of permanent residents in park homes or long-term caravans. These residents are regulated under the RTA and face some of the same insurance challenges as lifestyle village residents.

Smaller rural parks are often older, with less formal management. These communities can be more challenging for insurance purposes due to the age of homes and infrastructure.

Park homes sited on private freehold land — the owner's own property or a family member's — exist outside the holiday park framework and are generally more insurable because the leasehold complication doesn't apply.

The Regulatory Context

Understanding the regulatory framework helps with insurance conversations:

The Residential Tenancies Amendment Act 2019 extended RTA protections to park home residents in site-lease arrangements. This is a significant legal protection that every park home resident should understand.

Under the Building Act 2004, new park homes placed on a permanent site typically require a building consent. The manufactured home itself may be built to factory specifications that meet NZS standards, but site preparation, connections, and skirting usually require consent. Park homes placed without consent face the same challenges as other non-consented dwellings.

The Manufactured Home Industry Association NZ (MHIANZ) represents park home manufacturers and retailers. Membership includes commitment to build quality standards, and MHIANZ membership from a manufacturer can be a positive signal to insurers.

Frequently Asked Questions

Q: The park I live in owns the land and I own the home. Can I insure my home like a house?

A: You can obtain insurance for the home itself (structure, contents, liability), but the arrangement is different from owning freehold land. The key factors that affect insurability are the age of the home, its construction, and the formal status of your site agreement. A specialist broker who works with park home residents is the right starting point.

Q: My park home is over 30 years old. Is it insurable?

A: Older park homes are more challenging to insure but not necessarily uninsurable. A specialist insurer who underwrites older non-standard dwellings may offer cover — possibly on agreed value terms and with requirements for electrical and structural inspections. Don't assume an older home is uninsurable; consult a specialist first.

Q: Does the park operator's insurance cover my home?

A: No. The park operator typically has insurance for the land, common facilities, and their liability as a business operator. Your home and its contents are your responsibility to insure separately. This is a common misunderstanding among park home residents.

Q: If I need to relocate my park home, does my current insurance cover the transit?

A: Only if your policy specifically includes transit cover. Many home policies don't automatically cover transit — it's an endorsement or separate policy. If your park is threatening closure or you're planning a relocation, check your transit cover position before the move date.