Many people choose to downsize their living space. Instead of living in a large house, they build and live in a much smaller house. A tiny house helps its owner save tons of money in comparison to building or renting a larger house. Monthly utility cost also cuts down a lot. As any house owner, tiny house owners want to get their houses insured, too. However, it has never been an easy task. Some tiny houses are on wheels. Some are on foundations. Since a tiny house is new and uncharted, there will be some policy that a tiny house owner should know about tiny house insurance options.
Obstacles to insure a tiny house
- Size: many areas has requirements on the minimum size of a house that a tiny house can’t meet.
- DIY: a lot of tiny house owners prefer to build the houses on their own, which makes their micro dwellings unqualified for most of the insurance types.
- Many of the tiny house on wheels can’t meet criteria to be certified as a recreational vehicle (RV).
- There is no law for such type of dwellings so insurance companies don’t know which categories to put them on.
Bill and Elizabeth’s problems with getting their tiny house insured.
Tiny house insurance options
Fortunately, there are viable solutions to get an insurance coverage for a tiny house. Check out some tiny house insurance options below:
Tiny Homeowner’s Insurance Policy
This is one of the best insurance options for tiny house owners if they don’t intend to drive their house on the road often. The policies are inclusive of liability insurance, structural coverage, and content coverage.
Although it is close to traditional homeowner’s insurance policy, it needs to be purchased via a tiny house insurance broker. This option is exclusive of
However, if you tow your tiny house, the homeowner’s policy will be inactive and another insurance option needed to be added for coverage.
Requirements for tiny homeowner’s insurance policy:
- On-site inspection (dependable)
- Certified builds
- Electrical system inspection
- Document of building process by photos (recommended for DIY house)
RV Insurance Policy
Another option is to get your tiny house on wheels insured as an RV. This is highly recommended for owners who prefer their houses on road regularly. You will have similar coverage to auto policies with collision, content protection, and liability coverage. If you need your certified tiny house towed, RV insurance is a legal requirement.
One notice to this option is to check if the insurance company you choose covers people living full time there. If you just live in your tiny house on wheels occasionally, it will be easier to find a company.
Also, check if your tiny house is wrongly classified as a “manufactured house”. Manufactured home policies allow only 1-2 relocations with the requirement of a separate rider. Your tiny house on wheels must be certified to be qualified for RV insurance policy, though.
Inland Marine Insurance Policy
Inland marine insurance covers any mobile in nature property. This policy doesn’t include liability coverage. So, if someone sues you for getting hurt in your tiny house, all bills are yours. It also requires an addition of renter’s policy to protect personal belongings.
Automobile Insurance Policy
Automobile insurance provides coverage for the car and liability. It is required by law in most states but easy to get. Insurance companies may allow your tiny house on wheels to be towed on this policy if you have a travel endorsement.
However, automobile insurance does not cover the structure or its content. In this case, it is better to tag a renter’s policy and an inland marine policy for towing.
Renter’s Insurance Policy
If you want to rent a tiny house, this is a ‘must’. Renter’s insurance provides liability and personal belongings (theft or loss) coverage. This insurance is also active when you’re traveling. You can get your living expenses covered for a short period of time if your tiny house is uninhabitable.
Finding A Tiny House Insurance Agent
Since tiny house does not belong to any specific category, many insurance companies and agents will have difficulties classify it. Choosing the wrong one can cost you money and time without receiving any help. To help you in finding a good insurance policy for your tiny house, here are some tips to find a tiny house insurance agent:
- Firstly, choose the companies/agents who understand what a tiny house is. Someone who doesn’t know about tiny house may be confused and wrongly classified your house into another category. You may lose time and money without getting your insurance;
- Secondly, do not tell lies or withhold information with your broker. If you choose them, trust them. Otherwise, when they discover the truth, your claiming and filing may be declined. You won’t receive the coverage you need;
- The next is do your homework: even if you get a great agent/company, you should know your rights and obligations;
- Also, prepare and keep all the certificates, photos, and documents, etc. because you may need them later;
- Lastly, Get advice from other tiny house owners that have experience with tiny house insurance options.
It is not an easy journey to get insurance coverage for your tiny house. You can choose to live without insurance.
But remember, this you have to invest your money in the house, either buying or building, and it is your house. If there is any incident happens to it or to you, you may lose it. Having a plan for the unexpected is never a bad idea.
With all of these options, I hope finding tiny house insurance options can be less struggling for you. If you are living in a tiny house or planning for one, share with us below!