How to Insure Your Tiny Home

How Do Tiny Houses Work?

Exactly as its name implies, a tiny house is a very compact home. Although there are no set size restrictions, tiny homes often range in size from 100 to 400 square feet. According to the U.S. Census Bureau, the median size of newly built single-family homes in 2020 was 2,333 square feet.

Either tiny dwellings are permanent or tiny homes on wheels, making them mobile. The kind of insurance you require depends on this distinction and how you use your home.

Tiny House Insurance for RVs

If you choose a tiny house on wheels and want to move around regularly, RV insurance is the best option because it protects your house while it's parked and during transport. RV insurance comes with elements that some other plans lack, such as collision coverage, because it is made specifically for travelers. The tiny house must adhere to Recreational Vehicle Industry Association requirements to be eligible for RV insurance (RVIA).

These forms of coverage are frequently included in basic RV policies:

Collision—Regardless of who is at fault, this coverage begins to apply if your small house sustains damage in an accident with a vehicle or item.

Comprehensive—Also referred to as "other than collision," this insurance covers situations out of your control, including robberies, arsons, fires, falling items, weather-related mishaps, and collisions with animals.

Liability: It aids in covering costs for injuries and property damage you cause.

Uninsured/underinsured motorist protection protects you if someone drives into your little house without insurance or with insufficient coverage. If you cannot work, it helps cover lost wages, personal injuries, and damage to your tiny house.

Personal property—As the name suggests, this insurance provides coverage for your possessions if they are stolen, damaged, or destroyed.

If your tiny house is involved in an accident, this helps pay for your and your passengers' medical expenses.

Make sure to purchase a "full-timer's" policy if you live in your tiny house full-time.

Review your policy to ensure it offers the coverage you require because not all insurance providers provide the same selection of alternatives. If not, add endorsements or a different policy to close the gaps. For instance, you might purchase an inexpensive renter's insurance policy to cover your personal property and liabilities if your policy does not cover personal liability.

Tiny House Regulations For Mobile Homes

A mobile (or manufactured) home insurance coverage can be your best option if you only want to relocate your tiny house sometimes (or not at all), and a NOAH-certified contractor constructed it.

Like regular home insurance, a complete mobile home insurance coverage protects the structure, your possessions, and liability claims. On the other hand, mobile home insurance does not protect your house or possessions while your tiny house is being transported, unlike RV insurance.

You'll need a transit endorsement for that. You must notify your insurance provider ahead of time so it can change your policy because the coverage must be in place before you travel to your tiny house.

A named-peril policy is an additional choice for mobile home insurance. These relatively cheap insurance policies cover only the precise causes of loss listed in the policy. This implies that you will be responsible for paying for any repairs if your small house is harmed by a peril not covered by the insurance. Therefore, even if a named-peril policy can save you money, the additional risks may not be worth it.

How Much Does Insurance For Tiny Homes Cost?

Tiny house insurance doesn't have a defined cost. It relies on a variety of variables, such as:

• The design, dimensions, cost, and RVIA/NOAH status of your tiny home
• The cost of your personal property
• Your intended use for the house (e.g., parked in a tiny house community or on the road 52 weeks a year)
• The protection you need, together with any add-ons like a trip endorsement
• Your history of claims
• History of your credit

RV insurance typically costs more than mobile home insurance since it covers the home. At the same time, it is being transported, which exposes it to considerably greater danger than if it were only parked. Of course, the cost also depends on the deductible and coverage limits you select.