The concept of tiny house dwellings has been gaining massive popularity in the US, especially in North America, for all the good reasons. These miniature houses are perfect since they offer customizable and budget-friendly living. According to a survey in the late 2020s, Americans agreed to live in tiny houses. They believe the market will escalate by $5.80 billion between 2020 and 2024.
Besides popular television shows like Tiny House Nation and Tiny House, Big Living promoted scaling down your lifestyle. Smaller homes mean financial freedom from mortgages and rent.
However, if you are investing in them, it is compulsory to insure your tiny house on wheels. After all, it is impossible to anticipate what might happen. Hurricanes, break-ins, or physical damages can damage your house, and insurance can cover the damage.
Looking for tiny house on wheels insurance is similar to finding regular home insurance. However, it is imperative to know the differences. Below are a few vital things to know about tiny house insurance.
Cost of tiny house insurance
Tiny house insurance doesn’t have any set price. However, certain aspects need to be considered.
- The size, value, and construction of your tiny house on wheels
- Zoning regulations, as well as the building codes of the area where your tiny house is located
- The purpose of your tiny house purchase also decides the insurance cost
- Credit and claims history is also important
Is it compulsory to get tiny house insurance?
The up-front cost of tiny houses depends on the size, amenities, and finishes. Whether you build on your own or buy a readymade house, you have to pay around a few thousand to $70,000.
Like you insure your car, tiny homes need insurance to cover the physical damages. Moreover, if you transport your tiny house on wheels, you will need liability insurance like RVs.
Tiny houses on wheels are bought to move freely. If your house has permanent wheels and doesn’t need trailers for moving, you might not get any home insurance. For that, you will need to buy RV insurance. The average annual rate of the tiny house on wheels’ insurance costs around $390. However, you might face certain rules, like maintaining the current RVIA seal from any certified builder. If you buy an RVIA certified tiny house, you will easily get financing from a wide list of lenders and credit unions. Thus, you pay less for your mobile house.
Also, your house should be not more than 400 square feet. If you want to travel to America’s National Park with your mobile house in the US, you will need an RVIA Seal to enter.
Purchasing this insurance will protect your mobile house while it is on the move. However, you need to ensure that your tiny house meets the legal requirements to tow. Insurers, at times, cover those houses coming from a particular manufacturer.
Named Peril Policy
You can also avail of this option for your tiny house on wheels insurance policy. It is inexpensive compared to other policies as it covers only specific policies mentioned in the policy.
It means if your house incurs any damage due to any peril, which is unlisted, the insurance provider won’t cover the damage. So although you might save money getting this policy, it might not give you peace. Hence, it is better to speak with a broker regarding this policy.
If you shift to a tiny house on wheels full-time, you will need a policy that serves this purpose. Work with an insurance provider who provides coverage for alternative living structures.
Also, contact an insurance provider before buying or building a tiny house. Then, with expert assistance, you will get an idea of when to buy or build these houses so that you don’t end up living in uninsurable properties.
Tiny house insurance is quite abundant nowadays. Depending on your zones, you will get insurance coverage for tiny houses in the US.