Insuring Tiny Houses: On-Wheel Policies

Tiny houses are gaining popularity for their affordability, energy efficiency, and ease of maintenance. However, insuring a tiny house on wheels can be a complex process. The type of insurance policy you need depends on various factors, including how your house was built, whether it's on a foundation or trailer, and how often you plan to move it.

If your tiny house is on wheels and you intend to move frequently, RV insurance may be the best option. This type of insurance covers your home while parked and during transport, including collision, comprehensive, liability, and medical coverage. On the other hand, if you plan to move your tiny house only occasionally or not at all, a mobile or manufactured home insurance policy might be more suitable. These policies are similar to standard homeowners insurance and cover the home, personal property, and liability claims.

Additionally, tiny houses on wheels are particularly vulnerable to theft, so it's essential to consider security measures such as wheel locks, security cameras, and GPS tracking devices.

When choosing an insurance policy, it's important to consider your specific needs and priorities, as well as the requirements of your lender or state.

Insuring a tiny house on wheels: RV insurance

If you own a tiny house on wheels, you may need to get RV insurance. This is especially true if you plan to move your tiny house regularly, as most states require liability insurance for tiny houses on the road.

RV insurance covers your tiny home while it's parked and during transport. It includes collision coverage, which is not included in other types of insurance policies. To qualify for RV insurance, your tiny house must meet the standards of the Recreational Vehicle Industry Association (RVIA). This means that if you build your tiny home yourself, you may not qualify for RV coverage.

Basic RV insurance policies typically include the following types of coverage:

• 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 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: 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.

If you use your tiny house as your primary residence, be sure to purchase a "full-timer's" policy. Not all insurance companies offer the same coverage options, so review your policy carefully to ensure it provides the protection you need. If it doesn't, you can fill in the gaps with endorsements or a separate policy.

Insuring a stationary tiny house

If you own a tiny house, insurance coverage is usually not required by law. However, if you finance the purchase of your tiny home, your bank or lender may require you to insure it, just as you would for a traditional home or vehicle.

Even though tiny houses are small, they can still cost tens or even hundreds of thousands of dollars, so it's a good idea to protect your investment with a suitable insurance policy.

If your tiny house is stationary, you won't be able to cover it with a standard home insurance policy. Instead, you'll need to purchase a mobile or manufactured home insurance policy. Here are some things to keep in mind when insuring a stationary tiny house:

Mobile/Manufactured Home Insurance Policy

Mobile or manufactured home insurance policies are designed for tiny houses that are built on solid foundations and remain in one location. These policies typically include coverage for the structure of your tiny home, your personal belongings, and liability claims.

When choosing a mobile/manufactured home insurance policy, consider the following:

• Dwelling coverage: This covers the cost of repairing or replacing the physical structure of your tiny home if it is damaged.
• Personal property coverage: This covers your belongings inside the home up to a set limit if they are lost or damaged in a covered incident.
• Liability coverage: This protects you if you are held responsible for someone else's injuries or damages, covering you up to your policy's limits.
• Loss of use coverage: If your home is damaged and uninhabitable due to a covered loss, this coverage pays for additional living expenses, such as meals and lodging, above your normal spending.

Requirements and Availability

The requirements for coverage on a tiny home may vary by insurer and state. Some insurers, such as Progressive, require the tiny home to be factory-constructed and may prefer certification from the National Organization of Alternative Housing (NOAH). Self-constructed units may not be eligible for coverage.

Mobile/manufactured home insurance policies are widely available, with companies like Foremost offering coverage in all 50 states and Washington, D.C.

Cost of Insurance for Stationary Tiny Houses

The cost of insuring a stationary tiny house can vary depending on several factors, including the construction, size, value, and certification status of your home. The value of your personal belongings and the coverage options you choose will also impact the price.

Specialty Insurers for Stationary Tiny Houses

While most large home insurance carriers won't insure tiny homes, there are specialty insurers that offer tiny house insurance or mobile home insurance policies specifically designed for tiny houses. For example, Strategic Insurance Agency offers coverage for tiny homes in 48 states and does not require certification by NOAH or the Recreational Vehicle Industry Association (RVIA).

Preventing theft of a tiny house on wheels

• Installing a hitch lock, such as the Megahitch Coupler Vault, prevents thieves from attaching your trailer to their vehicle and driving away.
• Wheel locks, such as the Trimax TWL100 Ultra-Max Adjustable Wheel Lock, act as another simple deterrent.
• Placing your tiny house on blocks makes it harder to steal and gives it a sturdier feel.
• Motion-sensor floodlights, such as the Swiftly Done Bright Outdoor LED Light Solar Energy Powered, create the impression that someone is home and active on the property.
• A security system, such as the Simplisafe2 Wireless Home Security System, with loud alarms can deter thieves and alert the police.
• A generic alarm sticker and signs can also deter thieves.
• Using programmable lights, such as the Woods 50006 Indoor 24-Hour Mechanical Outlet Timer, to turn on and off while you're away can make it seem like someone is home.
• A GPS tracking device, such as the Accutracking Starter Kit, can help you locate your tiny house if it is stolen.
• Security cameras, such as the SANNCE 8CH 960H DVR Security Camera System, can record any attempted thefts and stream footage directly to your smartphone or laptop.
• Installing a locked gate can prevent thieves from accessing your property.
• Positioning large boulders or structures around your house can slow down thieves.
• Placing something heavy, like a truck, in front of the hitch can block other vehicles from attaching to your trailer.
• Removing the wheels and storing them safely can immobilise your tiny house.
• Installing an alarm system, such as the AAS GSM RV Security Alarm System, can alert you and the police if someone breaks into your home.
• Asking your neighbours to keep an eye on your property while you're away can help deter thieves.
• Using a plug-in mechanical timer, such as the Woods 50006 Indoor 24-Hour Mechanical Outlet Timer, to turn on lights, the TV, or radio can create the impression that someone is home.
• A fake dog, such as the Safety Technology International ED-50 Rex Plus Electronic Watchdog, can also deter thieves.

DIY tiny houses: insurance options

If you're building a tiny house yourself, you may need to buy specialised insurance from an agency that offers coverage for tiny homes. This is because many companies hesitate to provide coverage for DIY homes, especially if the home is on wheels.

The type of insurance you need depends on how you plan to use your tiny house. If you intend to keep your tiny house in one place, you will need a different type of insurance compared to a house on wheels that you plan to transport.

Insurance for a Stationary DIY Tiny House

If your tiny house is permanently installed in a single location, your best option is to cover your home with manufactured/mobile home insurance. You may be able to go with this option even if your tiny house has wheels, as long as you understand how that will affect your insurance coverage.

If you buy mobile home insurance for your tiny house, the structure of your home and property inside will be covered from most hazards. You'll usually get liability coverage, which protects you financially if someone is injured in your tiny home.

Insurance for a DIY Tiny House on Wheels

If you're regularly transporting your tiny house to new locations, an RV policy could be the right choice for you. However, RV insurance usually requires the home to be professionally constructed and certified by the RV Industry Association (RVIA). So, if you build your tiny home yourself, you may not qualify for RV coverage.

The cost to insure a tiny home varies depending on 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. RV insurance cost an average of 59% more.

The size and value don't have as much of an impact on your annual insurance premium. A tiny house that's twice as big only costs 14% more to insure.

Cost of insuring a tiny house

The cost of insuring a tiny house depends on several factors, and there is no set price. If you plan to move your tiny house often, RV insurance may be the best option. This type of insurance covers your home while parked and during transport and includes collision coverage. However, RV insurance is typically more expensive than mobile home insurance because it protects the home during transport, which puts it at greater risk.

The cost of RV insurance depends on the tiny home's construction, size, value, and RVIA/NOAH status, the value of personal belongings, how you plan to use the home, and the coverage limits and deductible chosen. Basic RV insurance covers collision, comprehensive ("other than collision"), liability, uninsured/underinsured motorist, personal property, and medical payments.

If you plan to move your tiny house only a few times a year or not at all, a mobile or manufactured home insurance policy may be a better option. This type of insurance is similar to standard homeowners insurance and covers the home, personal property, and liability claims. However, it does not cover the home or belongings during transport, so a transit endorsement is necessary if you plan to move your tiny house.

The cost of mobile home insurance depends on similar factors to RV insurance but tends to be less expensive since it does not cover the home during transport.

The average rate for tiny house insurance was $852 per year, but prices can vary widely depending on the type of insurance, the house's size and value, location, whether it is stationary or on wheels, and whether it is certified. Quotes for RV insurance ranged from $400 to over $1,500 per year, with the higher price due to the ability to move the home freely.

When insuring a tiny house, it is important to consider the coverage needed and shop around for the best option, as rates and coverage options can vary between insurance companies.

Frequently asked questions