Tiny houses are popping up all around the U.S. These miniature homes are affordable, energy-efficient, and easy to maintain. They’re popular amongst those seeking a simpler lifestyle. The smaller the home, the less clutter (and we bet Marie Kondo approves). If you’re a homeowner thinking of downsizing to a tiny house, there are some differences when it comes to insurance. That’s where we come in.
Is there such thing as tiny house insurance?
Of course there is- and you’ll need it if you’re thinking of purchasing one of these bad boys. If you used a mortgage or other loan to finance your tiny house, your lender will probably require you to buy insurance (the same way lenders do for traditional homes and cars). If you transport your tiny home, most states require you to have liability coverage—just like you would for a regular RV.
While there’s no legal requirement for you to insure your tiny house, we seriously recommend it. A tiny house is a serious investment, so it makes financial sense to protect it with a great insurance policy.
How much does tiny house insurance cost?
Just like regular homes, there is no set price. Your insurance needs, and how much you’ll pay, depends largely on whether you intend to regularly move your tiny house or keep it stationary. The following factors are also taken into account:
- Your tiny home’s construction, size, value, and RVIA/NOAH status
- The value of your personal belongings
- How you plan to use the home (for example, parked in a tiny house community or on the road 365 days a year)
- The coverage you want, including any extras, such as a trip endorsement
- Your claims history
- Your credit history
RV insurance for your tiny house
If your tiny house is on a trailer frame and you intend to move it more than a few times, then RV insurance might be right for you.
RV insurance will cover your tiny home while it’s parked, as well as while you’re on the road. RV insurance policies cover your tiny house and the property inside it. And since the coverage is designed for homes that move, you’re protected whether you’re on the road or parked on-site at a campground somewhere.
However, there are some limitations to typical RV insurance policies that could make them unsuitable for some owners of tiny homes. Most crucially, it’s often required for the tiny home to be professionally constructed and certified by the RV Industry Association (RVIA). So if you’re a DIYer and built your tiny home yourself, you may not be able to qualify for RV coverage.
Mobile home insurance for your tiny house
If your tiny house was built by a NOAH-certified builder and you don’t intend to move it more than a couple of times a year, then a manufactured home insurance policy, also referred to as a mobile and manufactured home policy, would make sense for you and your tiny home.
There are a couple of considerations to keep in mind when it comes to mobile home insurance: if you ever plan on moving your home to a new location, you’ll need extra coverage to cover your home and personal belongings while on the road. Oh, and you’ll also need to inform your insurance company (A.k.a us!) whenever you switch up your location.
If you’re thinking about making the switch to a tiny home, give us a call and we’ll go over your options so that your transition is seamless.