Are you considering living in a tiny home? These compact dwellings, typically ranging from 100 to 400 square feet, are designed to maximize space and minimize environmental impact. But before you make the leap into tiny living, you might be wondering if you can insure a tiny home. Let’s explore the ins and outs of tiny home insurance to help you make an informed decision.
What is a Tiny Home?
A tiny home is a small dwelling that is ingeniously designed to save space. These homes can be built on mobile foundations similar to RVs or on a solid foundation. According to the 2018 International Residential Code, a tiny home is a dwelling unit with 400 square feet of floor space or less, not including lofts. They come in various shapes and forms, offering a unique and minimalist lifestyle.
Is Insurance for a Tiny House Required?
If you own your tiny house outright, insurance coverage isn’t required by law. However, if you finance the purchase of your tiny home, your bank or lender may require you to insure it, just like you would for a traditional home or vehicle. If you’re taking out a loan or mortgage to fund your tiny home, insurance is a necessary step to protect your investment and comply with your lender’s requirements.
Does Standard Homeowners Insurance Cover Tiny Homes?
Unfortunately, standard homeowners insurance policies do not typically cover tiny homes. If your tiny home is stationary, you’ll need a mobile/manufactured home insurance policy. This specialized coverage provides protection for your tiny home and its contents.
Insurance for a Stationary Tiny House
When it comes to insuring a stationary tiny house, there are some specific requirements you should be aware of. Progressive, for example, requires the tiny home to be factory-constructed and prefers certification from NOAH (National Organization of Alternative Housing). Self-constructed units may not be eligible for coverage.
Mobile/manufactured home insurance policies usually offer coverage similar to traditional homeowners insurance policies for stationary tiny homes. These policies typically include:
- Dwelling Coverage: If your mobile home, in this case, a tiny home, is damaged, dwelling coverage may pay to repair or replace the physical structure.
- Personal Property Coverage: Anything you own inside your tiny home may be covered up to a set limited amount if lost or damaged in a covered incident.
- Liability Coverage: If you’re responsible for someone else’s injuries or damages, personal liability coverage may provide protection up to the policy’s limits.
- Loss of Use Coverage: If your home is damaged in a covered loss, making it uninhabitable until repairs are complete, loss of use coverage may pay for living expenses, such as meals and lodging, above your normal spending.
Insurance for a Tiny House on Wheels
If your tiny home is on wheels and you plan to travel with it, there are additional insurance considerations. A tiny house on wheels carries a higher risk of damage compared to a stationary tiny home. However, it’s important to note that Progressive, for example, does not provide coverage if you frequently move your tiny home.
What to Do If You’re Moving Your Tiny House
If you’re planning to move your tiny house on a regular basis, you’ll need to take extra steps to protect your property and belongings. Some insurance companies offer a transit endorsement option that extends coverage to your tiny home while it’s in transit between locations. Progressive, for instance, offers Trip Collision coverage for a specific 30-day period while you’re moving your home. This coverage protects the structure of your property within the policy limits but does not cover the contents inside.
Before you hit the road, it’s essential to check with your insurance provider to ensure that your policy’s coverages are in effect at your destination. Some insurance companies may not provide coverage in specific geographic regions due to risks such as flooding or wildfires. It’s crucial to have a comprehensive understanding of your insurance policy and its coverage limitations before embarking on your tiny house journey.
FAQs
Q: Do I need insurance for my tiny home if I own it outright?
A: While insurance coverage is not required by law if you own your tiny home outright, it’s still highly recommended to protect your investment and ensure financial security.
Q: Can I insure a self-constructed tiny house?
A: Some insurance companies may not provide coverage for self-constructed tiny houses. It’s important to check with your insurance provider to determine their specific requirements and eligibility criteria.
Q: Does mobile/manufactured home insurance cover the contents of my tiny home?
A: Yes, mobile/manufactured home insurance policies typically include personal property coverage, which covers the contents of your tiny home up to a set limit if they are lost or damaged in a covered incident.
Conclusion
Insuring a tiny home presents unique challenges and considerations. Whether your tiny home is stationary or on wheels, it’s crucial to have the right insurance coverage to protect your investment and provide peace of mind. While traditional homeowners insurance policies may not cover tiny homes, mobile/manufactured home insurance can provide the necessary protection. Consult with your insurance provider to understand your options and find the coverage that suits your needs.
