The Essential Guide to Tiny Home Insurance

Tiny homes need insurance protection just like any significant investment. After all, there are many reasons to get tiny home insurance and safeguard your structure so you can enjoy their advantages worry-free.

Not only are tiny homes typically cheaper to purchase, their smaller size can also make them easier to maintain and more energy-efficient, making them an appealing choice to those that don’t require a lot of space.

However, because of their smaller size, you might be wondering whether homeowners insurance works the same way for tiny homes as it would for a traditional home.

Can you get insurance on a tiny house? Fortunately, the answer to that is yes, though insuring tiny homes can work a bit differently than a traditional homeowners insurance policy. Read on to find out everything you need to know about tiny home insurance.

Unpacking Tiny Home Insurance

Before we get into the specifics of homeowners insurance for tiny homes, we need to define what a tiny home is.

While they come in a variety of forms, tiny houses are typically dwellings falling between 100 and 400 square feet. They can be stationary, built on permanent foundations like a traditional home, or they can be mobile, built onto trailers similar to an RV. This distinction will be a determining factor when shopping for insurance for your tiny home.

The Necessity of Tiny Home Insurance

Just like any home, tiny houses aren’t indestructible. Whether due to unexpected acts of nature such as floods or storms, or accidents on the part of you or others in the home, they could suffer costly damages that you’re unprepared for.

While tiny homes may not cost as much to repair as a traditional home, this can still put you in a bind financially if you’re having to pay for the repairs out-of-pocket.

Who Needs Tiny Home Insurance?

If you finance your tiny home through a lender, you will likely be required to maintain homeowners insurance through the duration of the loan. However, even if the home is completely paid for, it’s still a good idea to keep an active homeowners insurance policy for a tiny home to cover you in the event of a catastrophic event.

Types of Coverage for Tiny Home Insurance

As stated before, there are two types of tiny homes: stationary tiny homes and mobile tiny homes. The type of tiny home you own will determine what type of insurance you’ll need to shop for, as well as coverage options you’ll want to consider.

Insuring Stationary Tiny Homes

Stationary tiny homes could be written under a manufactured home insurance policy, though there are some conditions to keep in mind. Many insurance companies may not offer homeowners insurance for your tiny home if it’s a self-constructed or converted structure.

Additionally, most (if not all) companies may require the dwelling to be certified by the National Organization of Alternative Housing (NOAH) in order to be eligible for homeowners insurance.

Like with most homeowners insurance policies, you’ll want to make sure the policy contains adequate dwelling coverage to cover any damages your tiny home may sustain due to a covered loss, or even replace it entirely if needed.

You’ll need to make sure your tiny home insurance policy covers your personal property. You’ll also want to obtain liability coverage to cover others that might be injured in your home and loss of use coverage in the event that the tiny home becomes uninhabitable due to a covered loss.

Protecting Tiny Homes on Wheels

If you have a mobile tiny home, a RV insurance policy could be the answer. Not only will this offer coverage for the structure when stationary, it could also protect it from damages sustained while moving.

As with stationary tiny homes, though, it’s important to note that self-constructed or converted structures could be ineligible for insurance coverage, and your tiny home may need to be certified by the Recreational Vehicle Industry Association (RIVA).

Special Insurance Coverage Options

In addition to the insurance policy types listed above, there are some other factors you may want to keep in mind when shopping for tiny home insurance.

If you plan on moving your tiny home, you may want to look into obtaining trip collision coverage to protect the structure of the home while it’s in transit. You may also want to take into consideration whether you’re living off the grid and need coverage for things such as solar power or other unconventional power sources.

Additionally, if you’re planning on renting out your tiny home, you would need to look into obtaining a landlord insurance policy rather than a homeowners or RV insurance policy. Traditional homeowners and RV insurance policies may not cover tenants, or claims that arise while the home is being rented.

Cost Factors of Tiny Home Insurance

As with any type of insurance policy, there are a number of factors that affect the cost of tiny home insurance. The most obvious factors are the desired coverage and deductible options, but there are other things to keep in mind when shopping for tiny home insurance.

How Location and Risk Influence Your Insurance Premium

One big factor that can play a role in how much you could spend on tiny home insurance is the location of the home.

If your tiny home is located in an area that experiences frequent flooding or fires, the insurance premium will likely be higher than it would be in a region where such catastrophic events are infrequent. Insurance companies have to plan according to what the expected average risk would be for a specific area, and so regions that frequently experience catastrophic events may be priced higher to account for the expected risk.

The Impact of Size and Customization on Insurance Costs

It should come as no surprise that a tiny home with a larger square footage would cost more to insure than one with less. The larger a home is, the more it would cost to replace it in the event of a total loss from a covered peril.

Likewise, customizing the tiny home to your specific wants and needs may also increase the price, as such features could cost more to replace than those that come standard in the home.

Material Matters: How Your Tiny Home’s Build Affects Your Premium

Finally, what your tiny home is made of will play a role in determining the cost of your insurance policy. Because tiny homes are often constructed from lightweight or eco-friendly materials, they may be at greater risk than materials used on traditional houses.

In addition to the increased risk of fire damage and wind damage, these less-traditional materials may be harder to obtain for contractors, adding an unknown quantity for the insurance company to consider when determining the cost of insuring your tiny home.

Choosing the Right Insurance Provider for Your Tiny Home

A tiny home can be a great investment, and should be protected to ensure you can enjoy it for years to come. If you’re looking for quality insurance for your tiny home at a good price, 21st Insurance helps with that. You can insure your tiny home with the help of our skilled team.

Our insurance agents are committed to helping you find the right insurance coverage for your tiny home at a price that fits your budget. Call one of our agents at 844-343-9408 to get started on a quote today!