How Much Does Tiny Home Insurance Cost?

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Tiny home (Photo: @sashapritchard via Twenty20)
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.

Are you required to have insurance for your tiny home?

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 must 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.

Does purchasing insurance for a tiny home cost less?

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.