4 Things to Know About Insuring a Tiny House

Tiny Houses have become increasingly popular over the last decade for many reasons. The allure of living off the grid, sinking less of your hard-earned money on shelter costs, needing to take less time for cleaning/maintenance, etc. are all reasons people choose the tiny home route.

When it comes to insuring that tiny home there are some similarities and a few important differences that home buyers should be aware of before purchasing a tiny home. It is a good idea to make sure everything inside and outside your tiny home is covered and protected by the insurance you pay for.

Here are 4 Important Things to Know About Tiny Home Insurance

If You Plan to Keep the Home Mobile/Moveable You Need RV Insurance

It is not uncommon for people to build or have their tiny home built on a trailer frame. This allows the home owner to pick up and move the home whenever and wherever they wish. If you plan to do this you will need to obtain RV insurance. This helps to cover anything that would happen to the home while it is in transit.

To qualify for RV insurance the home must meet a few standards set up by the RV Industry Association or the RVIA. Some insurance companies will only cover a home on wheels if it is made by a manufacturer on their acceptable list of builders. If you do find an insurance company willing to cover your tiny movable home with RV Insurance without meeting these standards beware. These companies could leave you hanging when it is time to make a much needed claim.

Related: Are you ready to move into a tiny house?

Stationary/Permanently Placed Tiny Homes Need Manufactured Home Insurance

Manufactured Home Insurance is also sometimes referred to as mobile home insurance and is almost the same as standard home owner’s insurance. This type of insurance covers the actual structure of the home along with personal property inside of it and any injuries that someone on the property may sustain while visiting in the home. It will not cover the home if it is on wheels even if you never plan to move it. It also will not cover damage to a tiny home that happened in the process of moving it.

"Manufactured home insurance does not cover damage from natural disasters pertaining to living in an area that is at higher risk. For example, living on the beach in a high flood zone. This will require extra flood insurance." - Three Rivers Heating in Portland

If You Build/DIY the Tiny Home it Could Be Difficult to Insure

Many insurance companies will not insure tiny homes that were built by the homeowner if they are not a professional licensed contractor. They see this as a higher risk for a mishap to happen with the home. There are a few insurance companies that might insure a tiny home built by a non-professional but it will take some digging and shopping around to find one.

Related: 5 Things to Know About a Neighborhood Before Moving in

Some Companies Offer Specific Policies Just for Tiny Homes

Though not all of the big well-known insurance companies have specific tiny home policies, some companies do offer them. These policies are better for a tiny home because they specifically cover the issues a tiny home could face. These policies can be catered to the exact needs of tiny homeowners and help the claim process run much more smoothly should something happen instead of having to jump through brand new hurdles that neither you nor the person working on your claim has dealt with before. The best insurance for a tiny home is a policy made specifically to cover one.

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