How Do You Insure a Tiny House?

Tiny homes mean tiny bills, right? Not necessarily. Insurance coverage can quickly add up. Here's a guide on what you need to know about tiny home insurance coverage.
Written by Liliana Pina
Reviewed by Carrie Adkins
If you own a tiny home, you should look for homeowners insurance. Just because your home is tiny doesn't mean it shouldn't be insured to protect your finances when disaster strikes.
Alternative housing is on the rise and tiny homes have become one of the most popular options in the United States. Typically ranging from 100 to 400 square feet of space, these types of homes are coveted for their sustainability and affordability.
But just because your home is tiny doesn’t mean your home insurance coverage will be. Here's what you should know about how the cost of tiny home insurance is calculated and whether you should purchase a policy, all compiled by car insurance broker
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Tiny house insurance: The basics

Tiny home insurance is a relatively new concept, so not all insurance providers offer a coverage option for this type of home. While you are not required to purchase insurance for your tiny home, it is essential that you protect your home and personal property with a comprehensive insurance policy.
Much like traditional homes, the value of a tiny home depends on a variety of factors, but regardless of how expensive your home and/or personal belongings are, it can cost you a lot of money out-of-pocket to repair or rebuild your home in the event of an emergency or natural disaster.
If you are seeking a full-coverage policy for your tiny home, here are the coverage plans and add-ons you should select at the time of purchase:
Dwelling
: Covers the structure of your home due to damages caused by specific risks, or perils, listed in your policy.
Personal Property: Covers all of your personal belongings, including valuables like artwork and jewelry.
Personal Liability
: Covers the cost of any event in which you are held legally responsible (e.g., medical expenses for someone who hurt themselves in your home).
Endorsements/Riders: If you are seeking additional coverage or want to modify your current plan, you should purchasing an insurance add-on to ensure your home and belongings can be repaired or replaced in the event of an emergency.
If you have a lender and took a mortgage out on your home, you may be required to have specific types of coverage. Check with your lender to see what they require in terms of insurance for your tiny home.

How much does tiny home insurance cost?

A smaller home should mean less expensive bills, right? Well, not necessarily. According to MAC Insurance, a popular tiny home insurance provider that can insure in more than 35 states, the cost of coverage can range from $400 to more than $1,500 annually.
Like traditional homeowners insurance, the cost of tiny home insurance depends on a variety of factors, including:
  • Age
  • Amenities
  • Appliances
  • Claims history
  • Credit history
  • Endorsements/Riders
  • How your home was built (DIY versus hiring a contractor)
  • How your home is used (rental or live-in)
  • Location (and whether it is permanent or semi-permanent)
  • Size
  • Type of home foundation
  • Type of insurance policy (RV, mobile home, renters, homeowners, etc.)
  • Value of personal belongings
  • Whether your home is certified by the
    RV Industry Association (RVA)
    or the
    NOAH
While there is no cut-and-dry formula for determining how much you will pay for a tiny home coverage, you should reach out to multiple insurers to consider your coverage options and find a plan that meets your specific needs. Many tiny home owners actually rely on a bundle of insurance policies or build their own custom insurance policy to ensure that they are covered in all possible scenarios.
For example, if you're looking to list your tiny home on a rental website such as
Airbnb
, you will need to purchase a separate policy to cover any damages made by individuals not directly listed in your insurance agreement. Additionally, if your tiny home is also mobile, you will need to purchase an RV insurance policy to provide additional coverage during transportation.
Taking out additional policies or increasing your coverage may influence your insurance premium and/or deductible, so be sure to carefully consider your options before determining whether a tiny home is right for you and selecting a provider that covers you in every situation and circumstance.

How do you insure a tiny house?

To insure your tiny house, you need to first decide what you want and need covered. Check with your lender for any required coverage, if you have one. If not, just choose the coverage you want.
Once you've decided on what coverage you want, choose a homeowners insurance company and collect some quotes. When you've found a company you're interested in, contact them about the details of your tiny home. They may want to send an appraiser out to determine the value of your home.
After you've chosen your homeowners insurance company, it's time to choose a policy with them and buy it. Congrats! Your tiny house is insured.
MORE: The 10 best home and car insurance companies

Insuring a tiny house on wheels

If your tiny house is one wheels and you plan on transporting it around, you should consider alternative insurance options.
Thankfully, there's insurance perfect for this situation. Ask your carrier (or prospective carrier) about RV insurance.
RV insurance can offer coverage options similar to homeowners insurance, and it'll also cover you while on the road. One such additional coverage option for a tiny home on wheels is
collision coverage
.

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