Orlando Harmon
Tiny houses are gaining popularity, but insuring them is a little more complicated than taking out a standard home insurance policy. This is because tiny houses fall somewhere between mobile/manufactured homes and recreational vehicles (RVs). The type of insurance you'll need for your tiny house depends on how it was built and how you use it.
If your tiny house is on a trailer, it's likely to be on wheels and movable, so you'll need to look into RV insurance. This type of insurance covers your home while it's parked and during transport. However, RV insurance usually requires the tiny house to meet standards from the Recreational Vehicle Industry Association (RVIA). If your tiny house is only moved a couple of times a year, a mobile (or manufactured) home insurance policy might be a better option.
| Characteristics | Values |
|---|---|
| Type of insurance | RV insurance, mobile/manufactured home insurance, tiny house insurance |
| Insurance requirements | Not legally required, but may be required by lenders or states |
| Factors affecting insurance rates | Location, whether the house is stationary, who built it and whether it's certified, how it's used |
| Coverage | Dwelling, personal property, liability, loss of use, collision, uninsured motorist, personal property, medical payments, solar panels, matching siding endorsement, other structures, hidden water damage protection, identity restoration, earthquake protection, volcanic explosion protection |
| Insurance companies | Strategic Insurance Agency, Foremost, American Family, American Modern, State Farm, Progressive |
What You'll Learn
RV Insurance for tiny houses on wheels
If you own a tiny house on wheels, you may want to consider getting RV insurance. This type of insurance is designed for travellers and covers your home while it's parked and during transport. Basic RV policies typically include collision, comprehensive, liability, uninsured/underinsured motorist, personal property, and medical payment coverage.
When to Choose RV Insurance
RV insurance is a good option for tiny houses on wheels if you plan to move around frequently. To qualify for RV insurance, your tiny house must meet the standards of the Recreational Vehicle Industry Association (RVIA).
RV insurance covers a range of incidents, including:
- Collision: Covers damage to your tiny house in an accident with an object or another vehicle, regardless of fault.
- Comprehensive: Covers events beyond your control, such as theft, vandalism, fire, falling objects, weather-related incidents, and collisions with animals.
- Liability: Helps pay for property damage and injuries that you cause.
- Uninsured/underinsured motorist: Covers damages to your tiny home, personal injuries, and lost wages if you are hit by someone with no insurance or insufficient insurance.
- Personal property: Covers your personal belongings in the event that they are lost, damaged, or destroyed.
- Medical payments: Helps cover medical bills for you and your passengers if your tiny house is in an accident.
Full-Timer's Policy
If you use your tiny house as your primary residence, be sure to purchase a "full-timer's" policy, which is offered by major insurers.
Limitations of RV Insurance
It's important to note that RV insurance typically requires the home to be professionally constructed and certified by the RVIA. Additionally, some RV insurance policies are designed for vacation homes rather than primary residences. In this case, you may need an endorsement or a separate policy to cover your tiny house as your primary home.
Cost of RV Insurance
The cost of RV insurance can vary depending on factors such as the size and value of your tiny house, the coverage options you choose, and the deductible amount. RV insurance tends to be more expensive than mobile home insurance due to the higher risk associated with transporting your home.
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Mobile home insurance for stationary tiny houses
Mobile home insurance is a good option for insuring a stationary tiny house. This type of insurance is similar to standard homeowners insurance, covering the home, personal property, and liability claims. However, it's important to note that mobile home insurance doesn't cover the home or belongings while the tiny house is in transport. For that, you'll need additional coverage, such as a transit endorsement or separate temporary insurance.
When choosing mobile home insurance for your stationary tiny house, there are several factors to consider. Firstly, make sure your insurance provider offers coverage in your state. Some companies provide coverage in most states, while others have more limited availability. Secondly, check the requirements for coverage. Some insurers may require your tiny house to be certified by the National Organization of Alternative Housing (NOAH) or the Recreational Vehicle Industry Association (RVIA). Self-constructed units may not be eligible for coverage with certain providers.
It's also important to understand what is covered in your mobile home insurance policy. Typically, mobile home insurance covers the structure of your tiny house, your personal belongings, and liability claims. However, some policies may have limited fire coverage due to the compact size of tiny houses, which increases the risk of a fire burning down the entire home before it can be contained. Additionally, some policies may not include coverage for water leaks, especially if they are due to a lack of maintenance.
When shopping for mobile home insurance, consider comparing quotes from multiple insurance companies to find the best coverage and rates for your stationary tiny house. You can also look for insurance providers that offer additional coverage options, such as detached structures coverage, replacement cost protection for personal property, or trip endorsements if you plan to move your tiny house occasionally.
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Tiny house insurance specialists
If you're looking to insure your tiny house, you may need to turn to a specialist provider. This is especially true if your tiny house is a DIY build or doesn't meet the usual standards and certifications.
Why You May Need a Specialist
Standard home insurance policies won't cover tiny homes. And while mobile/manufactured home insurance policies or RV insurance may be an option, these aren't always a good fit either. It depends on how your tiny house is built, whether it's on wheels or a solid foundation, and how often you plan to move it.
Specialist Insurance Providers
There are a handful of small companies that offer tiny-house–specific coverage. These companies tend to offer the most options and flexibility. They generally cover any traditional or alternative living structures, including:
- DIY units
- Off-the-grid cabins
- Micro homes
- Storage container homes
- Park models
- Custom RVs
- Accessory dwelling units (ADUs)
Some companies offer tiny house construction insurance, and most will insure tiny houses that aren't built to Recreational Vehicle Industry Association (RVIA) standards or certified by the National Organization of Alternative Housing (NOAH).
What to Expect from a Specialist
A specialist insurance provider will be able to give you the exact coverage you need for your tiny home. This may include:
- Dwelling coverage: This covers the cost of repairing or replacing the structure of your tiny home if it's damaged.
- Personal property coverage: This covers your belongings inside the home if they're lost or damaged.
- Liability coverage: This protects you financially if someone is injured in your tiny home or their property is damaged and they sue you.
- Loss of use coverage: If your tiny home is damaged and uninhabitable, this covers any additional living expenses, such as meals and accommodation.
- Transit endorsement: This covers your tiny home and belongings while it's being transported between locations.
Cost of Tiny House Insurance
The cost of tiny house insurance varies depending on the type of insurance you choose, the size and value of your tiny home, and other factors. The average rate is $852 per year, but it can be as low as $400 or as high as $1,500 per year.
Insurance for a tiny house you build yourself
If you're thinking of building your own tiny house, you may need to buy specialised insurance from an agency that sells coverage for tiny homes. This is because many companies hesitate to provide coverage for DIY homes, especially if the home is on wheels.
Most specialty insurance agents will require photos of the completed tiny house, including pictures of the wiring and plumbing. Some companies also require a walk-through inspection to make sure the house meets safety requirements.
When choosing an insurance company, make sure the policy is backed by a reputable insurance company, such as Lloyd's or Chubb.
No matter what policy you buy, make sure you get coverage for the structure of the home and the property inside it. You'll also need liability insurance to protect yourself financially if someone is injured in the house.
The cost to insure a tiny home varies by the type of insurance you choose and the house's size and value. The average rate for tiny house insurance was $852 per year. The biggest price difference was between RV insurance and manufactured home insurance, with RV insurance costing 59% more on average.
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Insurance for a tiny house you plan to move
If you plan to move your tiny house more than a few times, you should look into getting RV insurance. This type of insurance is available from many national companies and covers your tiny home whether it's parked or moving.
RV insurance typically includes the following types of coverage:
- Collision coverage, which applies if your tiny house is damaged in an accident with an object or another vehicle, regardless of fault.
- Comprehensive coverage, which is also known as "other than collision" and covers events beyond your control, such as theft, vandalism, fire, falling objects, weather-related incidents, and collisions with animals.
- Liability coverage, which helps pay for property damage and injuries that you cause.
- Uninsured/underinsured motorist coverage, which covers you if your tiny home is hit by someone with no insurance or insufficient insurance. It helps pay for damages to your tiny home, personal injuries, and lost wages if you are unable to work.
- Personal property coverage, which covers your personal belongings in the event that they are lost, damaged, or destroyed.
- Medical payment coverage, which helps cover medical bills for you and your passengers if your tiny house is in an accident.
It's important to note that not all insurance companies offer the same coverage options, so be sure to review your policy carefully to ensure it provides the protection you need. If it doesn't, you may need to fill in the gaps with endorsements or a separate policy. For example, if your policy doesn't include personal liability coverage, you may want to consider purchasing a separate renter's insurance policy to protect against both personal liability and loss of personal property.
Another thing to keep in mind is that RV insurance usually requires the home to be professionally constructed and certified by the Recreational Vehicle Industry Association (RVIA). If your tiny home does not meet these standards, you may have difficulty finding an insurance company that will provide coverage. In this case, you may need to explore specialty insurance options specifically designed for tiny homes.
Frequently asked questions
If your tiny house is stationary and you own it outright, you're not legally required to have insurance. However, if you finance it with a loan, your lender may require you to insure it. If your tiny house is on wheels, you will need liability coverage as per the laws of most states.
Tiny house insurance typically covers the structure of your home, your belongings, personal liability, and additional living expenses if you need to live elsewhere while your home is being repaired.
The type of insurance you need depends on the design of your tiny house. If your tiny house is on a trailer and you plan to move it more than a few times, you should look into RV insurance. If your tiny house is stationary, you can get manufactured/mobile home insurance.
The cost of tiny house insurance varies depending on factors such as the type of insurance, the location of your home, whether it's stationary or on wheels, and who built it. It can range from $400 to over $1,500 per year.
Some insurance companies that offer tiny house insurance include Strategic Insurance Agency, Foremost, American Family, American Modern, and State Farm.
