Tiny house insurance is an important consideration if you are into this kind of lifestyle. Over the past few years, more and more people have adopted the “tiny house movement”. This is moving to a tiny home for a period of time or permanently. Living in a tiny house, however, is a very unique situation as this kind of property does not really fall into a specific classification when it comes to home insurance coverage.
It was only in 2017 when “tiny houses” were given an official meaning and was approved by the International Code Council (ICC).
Defining A Tiny House
In general, tiny houses are dwellings that are no bigger than 400 sq. feet or 37 sq. meters in floor area space, excluding add-ons and lofts. One thing you need to understand, that this specific description of a tiny house does NOT include:
- Park models such as an RV that is designed to be a temporary accommodation for camping, recreation, or seasonal use.
- Manufactured homes with a permanent chassis
There are plenty of reasons why people are choosing to stay in a small house. Some are here to reduce their carbon footprint and for others, they want to enjoy mortgage-free homeownership. There are individuals or families who like to stay in tiny homes for short vacations and there are also those who opt to stay full-time in this type of dwelling.
While living in a tiny house can be rewarding, it can also cause problems especially if you want to get insurance coverage for this property. Many tiny house owners find it difficult to secure home insurance coverage. Unfortunately, because most tiny homes do not follow building codes and city zoning regulations, many insurance companies do not provide coverage for this type of property. Thankfully, there are several ways to still be able to get adequate coverage for your tiny house. In this article, we will provide the different options that you can pick on for insurance coverage for tiny houses.
Getting Tiny House Insurance Coverage
If your tiny home is stationary and you plan to finance the construction yourself, you are not legally required to get insurance coverage for it. This is a risky option, however, because even if you have a tiny property, it can still cause unprecedented problems for you and your finances.
Often, homeowners also add wheels to their tiny home to make it mobile and easy to bring to other areas. In this case, you are required to get insurance coverage that has the same function as that of a Recreational Vehicle (RV) or car. If you plan to take out a loan to build your home, whether stationary or moving, your lender may require you to get home insurance before your loan will be approved.
The key to getting homeowners insurance for your tiny home is to plan well ahead of time on how you will use your property. When you are sure how you will use your unique property, you can get the coverage that suits you and your tiny home.
If you are just renting out your tiny house as a vacation home or through services like Airbnb, you will need different coverage than when you are living in the tiny home full time. A renters insurance policy, for example, will provide liability and personal belongings coverage but will not provide coverage for the structure of the house itself.
For the purpose of this article, we will categorize tiny houses into certified, non-certified, and DIY tiny homes. These categories will open your property into various possibilities when getting insurance. That is why it is crucial that you have a general sense of how you will use your tiny home.
RVIA or NOAH Certified Tiny Homes
National Organization of Alternative Housing (NOAH) or Recreational Vehicle Industry Association (RVIA) are organizations that provide a seal for properties that are built by certified RV or tiny home builder. With this seal, you may be allowed to take an RV insurance which will provide you with all the necessities for a mobile home.
For most RVIA certified homes that have attached wheels, you may be allowed to take a typical RV insurance coverage. This policy will provide coverage when your tiny home is parked or while on the move. Most insurance companies will provide protection which typically includes:
- Liability
- Collision
- Structural
- Medical
- Uninsured and underinsured motorists protection
Nevertheless, if you plan to live full time in the tiny house, you may want to get a “full-timers” policy. Some major insurance companies like Foremost and Progressive provide this unique policy.
In special cases, you may be allowed to combine different types of policies. For example, RV insurance policy and manufactured mobile home policy. This will provide protection for the tiny house whether it is stationary or moving. Besides, as more and more people are joining this unique lifestyle, some companies are now providing specialty insurance made specifically for tiny homes.
Certified Stationary Tiny House Insurance
If you plan to live in a stationary tiny house that is built by a National Organization of Alternative Housing (NOAH) certified builder and you do not have plans to move it for at least a couple of times a year, you can opt for a manufactured home insurance, a standard insurance that is offered by many companies.
In the event that you need to move your home to a new location, you will need a transit endorsement which will provide protection for your home and items inside while on the move. You are also required to inform your insurance company if you want to switch locations.
Non-Certified Tiny Homes
If you have a tiny home that is built by a professional but non-certified by the RVIA or NOAH, you may need to speak directly to an insurance broker. They will typically investigate the property and will provide you with coverage that includes structural, liability, and valuable items protection.
DIY Tiny Homes
Many individuals who are in the building or construction hobby will also try to build their own tiny home. While this is not illegal, you can take additional measures to make your home insurance purchase easier. For example, get an electrical inspection before you close your walls which may be helpful once you need to buy a policy.
