The 2026 Building Consent Exemption: What It Means for Tiny Home Insurance

Under building regulations that came into effect in January 2026, certain new homes under 70 square metres no longer require building consent in New Zealand. This is significant news for the tiny home industry — but it also raises important questions about insurance. Can you insure a home built without a Code of Compliance certificate?

What the Exemption Covers

The building consent exemption for small dwellings applies when all of the following conditions are met: the home is under 70m² gross floor area, it's single-storey and detached (not attached to another building), it's designed and built by Licensed Building Practitioners (LBPs), the council is notified before construction begins (a notification process, not a consent), and the design complies with the Building Code.

Crucially, this is not a free-for-all for owner-builders. The LBP involvement requirement means that professional builders must be responsible for or involved in restricted building work, and their involvement must be documented.

What It Doesn't Cover

The exemption does not apply to: homes on wheels (which are not "buildings" in the Building Act sense and are subject to different regulations), homes being built entirely by owner-builders without LBP involvement, homes that will be used for commercial purposes (short-stay rental may complicate this), and homes with unusual structural configurations that fall outside standard Building Code compliance pathways.

Insurance Implications

The key question for tiny home owners is: will insurers accept a home built under the consent exemption — without a Code of Compliance certificate?

The answer, encouragingly, is yes — for some insurers. Initio, for example, has confirmed publicly that it can consider cover for homes built under the consent exemption, provided all conditions are met and the LBP documentation is in order. Other specialist insurers are taking a similarly pragmatic approach.

The critical requirements for insurability under the exemption are: proof that LBPs were responsible for restricted building work, council notification documentation, a design that demonstrably meets the Building Code, and thorough documentation of materials and construction process.

What You Should Keep

If your home was built under the consent exemption, keep the following documentation for insurance purposes: the council notification acknowledgement, the LBP certificates of work (these are issued by LBPs at completion), any engineering assessments obtained, photographs of the construction process (particularly framing, insulation, and weatherproofing), and material specifications and receipts.

Getting Insurance Under the Exemption

Our advisers know which insurers will accept homes built under the 2026 consent exemption and what documentation is required. Submit a quote request and a NZ-licensed adviser will assess your situation and reach out within one business day.