Can a Tiny House Be Insured? Tips for Your Tiny House Insurance

Although tiny homes are comparatively cheaper than traditional houses, the need for insurance is essential. The risks of owning a tiny home are huge, and to protect the home and personal belongings from perils like theft, fire, and falling objects, the need for tiny home insurance is non-negotiable. Many tiny home insurances come with liability coverages which comes to use during the event of a lawsuit and for medical expense coverage in case anyone gets injured while inside the house. When you buy tiny home kits for sale, a standard home insurance policy won’t be able to cover the house. The tiny home insurance depends on the state, the insurer, and many other factors.

While the tiny house kits for sale are live in the market and you can now easily connect with the builders via TinyHouseMe, home insurance can be challenging for first-time tiny home buyers. The tiny home insurance policies aren’t one-size-fits-all. A good insurance company should offer endorsements for customization, flexible policy options, and great customer service. In addition, you should choose an insurance agency with excellent financial strength so that they can reimburse policyholders for a covered loss.


How does tiny home insurance work?

Firstly, you must determine whether the tiny dwelling is movable or stationary. Some insurance agencies will demand you to get the home certified; the certification type is determined by whether you have a mobile home or a stationary one. For a stationary tiny home, you need certification from NOAH (National Organisation of Alternative Housing). For moveable houses, the certificate should come from Recreational Vehicle Industry Association. The tiny home will be inspected in both cases to ensure the house meets safety standards. Once the tiny home gets certification, you can choose the insurance provider. Many insurance companies like Strategic Insurance Agency, American Family Insurance, and Foremost Insurance Group offer customized insurance policies for your tiny house. It’s important to compare the agencies and their rates to find the most competitive insurance provider and not blindly go with the lowest bidder.

Secondly, it’s important to choose an insurance policy that will cover the replacement fee of the tiny house along with all the contents and other structures on the property. Liability coverage is important as it helps you recover the house, its contents that get stolen or damaged, or even if anyone is injured on the property. Trip endorsement policies are essential if you have plans to move the tiny home. As per Treehugger, the average tiny home insurance cost is $600 per year, but it can vary depending on the valuation of the tiny home, location, movability, deductibles, and other factors.

Why do you need specialized insurance for tiny homes?

The tiny homes on wheels are mobile and insured as RVs or travel trailers. A typical RV insurance policy will offer coverage for collisions, damages out of your control (including theft and weather events), and your belongings inside the house. However, tiny homes aren’t as aerodynamic as RVs and do not meet the codes needed to qualify for RV insurance coverage. That’s why you need to opt for tiny home-specific insurance policies where the approach will differ. The insurance will be similar to a home and offer replacement cost coverage, broad-form peril coverage, and loss settlement.

Many people buy tiny home kits for sale as they are affordable, allowing them to forego mortgages. However, without the mortgage, insuring the house isn’t legally necessary, but it’s important if you want to protect your investment. Tiny houses are more vulnerable to damage than traditional houses and need specialized coverage. Tiny homes are more likely to suffer from damages from wind and improper towing rather than getting stolen. Improper towing is very destructive, and if the unit topples over, it’s a total loss. The tiny homes can sometimes be salvaged, but such damages are irreparable. The need for insurance is paramount to cover your tiny home from such irreparable damages.

Insurance for movable tiny homes

Here we are talking about RV insurance. If your tiny house is movable, then this insurance is ideal. RV insurance plans cover the tiny house while it’s parked and even while you move the house from one place to another. The insurance policy covers the tiny house and all the property inside. However, this insurance has certain drawbacks. Firstly, the tiny home needs to be professionally constructed and certified by the RVIA, which means if you build a DIY home, you will not qualify for RV coverage. Another challenge is that RV insurance is designed for vacation homes and spaces that aren’t your primary residence. Therefore, if you plan to live in a tiny house full-time, you either get an endorsement or find a policy that will allow you to use the house as a primary residence.

Insurance for stationary homes

If you get tiny house kits for sale permanently installed on a particular location or assembled on-site, then manufactured/mobile home insurance is ideal. If you have a tiny home on wheels, you can take this route as long as you understand how this will affect your insurance coverage. Mobile home insurance for the tiny house covers the structure from most perils, and the property inside is also covered. Liability coverage also comes with insurance and protects you financially if anyone gets injured while inside the home. However, some insurances have limited fire coverage.

Moreover, the coverage for a manufactured home won’t protect you if your house is connected with a trailer hitch or is on the road. If you intend to move the tiny home, you should consider a travel endorsement or get separate temporary coverage; especially when you are not covered with auto insurance – and generally, tiny homes don’t have it. Every time you move the tiny home to a new place, you need to update the insurance company for a change in the policy.


Insurance for DIY homes

Finding an insurance policy for a DIY tiny home is a real challenge. Insurers are hesitant to give coverage to DIY homes built by amateurs. However, some insurers will inspect the tiny home and might ask for pictures of wiring and plumbing to ensure the house meets all safety requirements. If you want to save yourself from all the legwork, find tiny house kits for sale and make an affordable purchase. TinyHouseMe can connect you with builders offering tiny home kits for sale across US and Canada. This online platform can also help you with the financing of the tiny home project and guide you to get your home insured.

How much is the cost of tiny home insurance?

The insurance cost varies dramatically depending on the size and value of the tiny home. The kind of insurance you choose also affects the cost. As per ValuePeguin, the price difference between RV insurance and manufactured home insurance is huge as RV insurance costs 59% more on an average.

You might have reasons to have a tiny home, but it’s also important to protect the structure – which is why you should get it insured. For more valuable tips like these, join TinyHouseMe and connect with the experts. You can also directly talk with established tiny home builders via TinyHouseMe and get started with your tiny home project.