Jane Dotson
Tiny houses are becoming an increasingly popular option for those seeking a more budget-conscious and sustainable lifestyle. However, insuring a tiny home can be a complex process due to the unique nature of these dwellings. Unlike traditional homes, tiny houses often do not qualify for standard homeowners insurance policies and may require specialty insurance. This guide will explore the different insurance options available for tiny house owners, including RV insurance, mobile home insurance, and specialty tiny home insurance providers. We will also discuss the factors that can impact the insurability of a tiny house, such as zoning laws and building codes, and provide tips for finding the right insurance coverage to protect your tiny home and your finances.
| Characteristics | Values |
|---|---|
| Insurance type | Specialty insurance, RV insurance, mobile/manufactured home insurance, or added to existing homeowners insurance |
| Insurance providers | Farmers, Progressive, Foremost, American Family, State Farm, American Modern, Strategic Insurance Agency |
| Requirements | May need to meet state and local building and zoning codes, foundation, dimensions, certification, and transit endorsement |
| Coverage | Dwelling, personal property, theft, personal liability, medical payments, detached structures, replacement cost protection, trip endorsement |
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What You'll Learn
- Specialty insurance, RV insurance, mobile/manufactured home insurance, or adding to existing homeowners insurance
- Understanding what insurance your tiny house qualifies for
- Transit endorsement for tiny houses that are moved
- Insurance for off-the-grid tiny houses
- Insurance requirements for tiny houses on wheels
Specialty insurance, RV insurance, mobile/manufactured home insurance, or adding to existing homeowners insurance
Tiny homes present unique challenges when it comes to insurance, as they often do not meet standard building codes and zoning laws, and may be difficult to insure through traditional means. Here are some options for tiny house homeowners insurance:
Specialty Insurance
Specialty insurance is designed for unique or non-standard dwellings, and this can include tiny houses. Some insurance providers, like Strategic Insurance, offer specialty insurance for tiny homes, providing coverage for personal liability, other structures, and contents. This type of insurance may be ideal for tiny homeowners who have built their homes themselves (DIY builds), as some insurance companies do not offer coverage for non-certified structures.
RV Insurance
If your tiny house is on wheels, it may be classified as a recreational vehicle (RV), and you may need to register it with the DMV and acquire RV insurance. Companies like Progressive offer insurance for factory-constructed tiny houses on wheels (THOW) and tiny houses on foundations (THOF). However, it's important to note that DIY builds may not be eligible for this type of coverage.
Mobile/Manufactured Home Insurance
Mobile/manufactured home insurance is another option for tiny house homeowners. Companies like Foremost offer this type of insurance, which can include coverage for dwelling, personal property, and additional living expenses if your home is damaged and you need temporary accommodation. Mobile/manufactured home insurance may be a good choice for tiny houses that are certified by organisations like the National Organization of Alternative Housing (NOAH) or the Recreational Vehicle Industry Association (RVIA).
Adding to Existing Homeowners Insurance
In some cases, tiny homes may be added to an existing homeowners insurance policy, particularly if they meet the standards of an accessory dwelling unit (ADU). ADUs are considered unattached structures, like guest houses or pool houses, and can often be covered under the "`other structures`" portion of a homeowners insurance policy. However, it's important to discuss this option with your insurance agent to understand the specific guidelines and limitations of your policy.
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Understanding what insurance your tiny house qualifies for
Standard Homeowners Insurance
Standard homeowners insurance policies typically do not cover tiny houses due to their unique characteristics and mobile nature. However, it's worth checking with your insurance provider, especially if your tiny home is on a permanent foundation and properly zoned. Some companies may offer coverage, but it's not standard.
RV or Mobile Home Insurance
If your tiny home is on wheels and you plan to transport it frequently, RV insurance is a suitable option. This type of insurance covers your tiny home while it's in transit, protecting it from risks like collision or theft. Keep in mind that RV insurance does not cover your belongings while the house is in transport, so you may need additional coverage for your possessions.
Manufactured Home Insurance
Manufactured or mobile home insurance is another option for tiny houses, especially if your home remains stationary. This type of insurance provides coverage similar to traditional homeowners insurance, including protection for the structure and your personal belongings. However, it typically applies to homes that are not moved regularly.
Specialty Insurers
Some specialty insurers offer tiny house insurance, providing tailored coverage for this unique type of dwelling. These companies often insure tiny houses that don't meet RVIA standards or lack certification. They tend to offer flexible options, so you can work with them to get the exact coverage you need.
Transit Endorsement
If you plan to move your tiny home, consider adding a transit endorsement to your policy. This ensures that your home is covered while in transit, providing peace of mind during transportation.
Location and Zoning
Location and zoning play a significant role in determining insurance for your tiny home. Each state and local jurisdiction may have different definitions, requirements, and regulations for tiny houses. Be sure to understand the specific laws and zoning codes in your area to ensure your tiny home complies with the necessary standards for insurance eligibility.
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Transit endorsement for tiny houses that are moved
If you own a tiny house, you may need to consider a transit endorsement, also known as trip endorsement, trip collision coverage, or travel endorsement, if you plan to move it to a new location. This is because a standard homeowners insurance policy does not typically cover tiny houses, and mobile home insurance does not cover the home or your belongings while in transit.
A transit endorsement will protect your tiny house and personal belongings while on the road. This is an important consideration, as tiny houses on wheels are at a higher risk of damage due to travel. Some companies, such as Progressive, offer trip collision coverage for a specific 30-day period while you're moving your home. This type of coverage protects the structure of the property up to your policy's limits, but not the contents inside.
If your tiny house is on wheels and certified by the Recreational Vehicle Industry Association (RVIA), you may want to consider RV insurance instead. RV insurance will cover your tiny house while it is parked and when it is moving. Most major insurers offer RV policies, which include protection for the structure of your RV and liability coverage. However, RV insurance tends to be more expensive than mobile home insurance.
Before purchasing a transit endorsement or RV insurance, be sure to check with your insurer to see if your policy's coverages are in effect at your destination. Some insurance companies may not provide coverage in specific geographic regions due to risks like flooding or wildfires. Additionally, insurance requirements can vary by state, so it is important to research the laws and requirements in your area.
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Insurance for off-the-grid tiny houses
Off-the-grid tiny houses are generally not covered by standard homeowners insurance policies. This is because tiny houses are considered mobile homes and are not usually code-compliant. As a result, you will need to purchase specialty insurance for your off-the-grid tiny house.
Some companies that offer off-the-grid tiny house insurance include:
- Strategic Insurance Agency LLC (in Arizona, California, Colorado, Idaho, North Carolina, New Mexico, Oregon, Tennessee, and Washington)
- Foremost Insurance Group (through a Farmer's agent)
- Kingston Specialty Group (in Ontario, Canada, and other provinces)
These companies offer coverage for off-grid cabins, micro-homes, storage container homes, and other alternative living structures. They also provide coverage for homes that are not built to RVIA standards or certified by NOAH.
When considering insurance for your off-the-grid tiny house, it is important to review your policy carefully to ensure it provides the coverage you need. For example, if your policy does not cover personal liability, you may need to purchase a separate renters insurance policy. Additionally, if you plan to transport your tiny house frequently, you will need to purchase RV insurance or a transit endorsement in addition to your standard policy.
It is also recommended to get your tiny house certified, as this can make it easier to obtain insurance coverage. Furthermore, if you are financing your tiny house through a mortgage or loan, your lender may require you to purchase insurance.
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Insurance requirements for tiny houses on wheels
Tiny houses on wheels do not qualify for standard homeowners insurance and are instead classified as mobile homes or RVs. This means that you will need to purchase a specialised insurance policy for your tiny house on wheels.
Some insurance companies will not insure tiny houses on wheels at all, while others will offer policies with certain restrictions. It is important to shop around and read the fine print carefully to ensure that your tiny house on wheels meets the insurer's requirements. For example, some companies may require that your tiny house is professionally built, while others may only insure self-builds. Additionally, some companies may require RV certification, while others will not.
If you plan to transport your tiny house on wheels frequently, you will need to purchase RV insurance, which covers your home while it is in transit. Some companies offer a transit endorsement option that extends coverage to your tiny house while it is being moved between locations. This is an important consideration, as there is a higher risk of damage when your home is on the road.
When choosing an insurance policy for your tiny house on wheels, it is important to consider your coverage needs. At a minimum, you should ensure that your policy includes dwelling coverage, personal property protection, and liability coverage. You may also want to consider add-ons such as matching siding endorsement, other structures coverage, trip collision coverage, and hidden water damage protection.
Finally, it is important to note that the requirements for insuring a tiny house on wheels can vary depending on the jurisdiction, lender, and insurance agency. Be sure to consult with an insurance agent who is experienced in insuring tiny homes to ensure that you are meeting all the necessary requirements and have the appropriate coverage.
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Frequently asked questions
Tiny houses may qualify for specialty insurance, RV insurance, mobile/manufactured home insurance, or be added to an existing homeowners insurance policy.
Some companies that offer tiny house insurance include State Farm, American Modern, Foremost, and Strategic Insurance Agency. Big-name carriers like Farmers and Progressive also have tiny house insurance options.
It is important to understand what kind of insurance your tiny house qualifies for based on factors such as zoning laws, dimensions, and whether it has a foundation or wheels. You should also consider your coverage needs, such as personal liability, personal property, and medical payments coverage.
Contact an insurance agent experienced in insuring tiny homes to learn about the guidelines and limitations of different policies. Review your policy carefully to ensure it provides the coverage you need, and don't be afraid to ask questions.
