Tiny Home Insurance: What to Know

Proper Insurance, Progressive, and American Modern are a few of the best options for tiny home insurance.

Jess Ullrich
Written byJess Ullrich
Jess Ullrich
Jess UllrichInsurance Writer
  • Más de 10 años escribiendo sobre seguros y finanzas personales

  • Ex editora asociada de finanzas de Investopedia

Jess es experta en seguros, banca y otros temas de finanzas personales. Sus artículos han aparecido en numerosos medios de comunicación web, como Investopedia.

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Katie Powers
Edited byKatie Powers
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Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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Updated July 24, 2024

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The tiny home concept has grown in popularity during the past decade. Market research firm Data Bridge estimates the tiny house market in North America was worth $2.15 billion in 2022, the most recent year for which data is available.[1]

These homes have a smaller price tag and carbon footprint. Insuring these unique properties can be more challenging than getting traditional homeowners insurance, but tiny home insurance is available and important for protecting your investment.

Here’s what you should know about getting a tiny house insurance policy.

Quick Facts
  • You might be able to add a stationary tiny home to your homeowners policy, but it depends on local laws and insurance company regulations.

  • Modular home insurance is an alternative for stationary tiny homes that don’t qualify for a standard policy.

  • Tiny house owners may need RV insurance for mobile tiny homes.

How does tiny home insurance work?

While some traditional home policies can cover tiny homes that meet applicable regulations and requirements, you might need to seek out specialty coverage for modular homes, mobile homes, or recreational vehicles (RVs).

You might not technically need insurance if you own a stationary tiny home outright, but it can protect your property and personal belongings from perils like fires, wind damage, and other issues caused by natural events. If you live in an area prone to floods or earthquakes, you’ll probably need additional coverage.

If you have a mortgage or took out another loan to build your tiny home, your lender will likely require proper insurance. And if you’ll be moving your home around, you’ll likely need additional coverage to drive it on the road.

The cost of your tiny home insurance will vary based on several factors, including your home’s size, value, location, types of coverage you chose, and more. Contacting a licensed insurance agent can help you get more information about coverage and provide insight into potential insurance premiums.

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What is a tiny home?

The International Code Council, an American nonprofit that helps develop building codes and standards, defines a tiny home as a home with 400 square feet or less. Total square footage excludes loft spaces.[2]

Generally, tiny homes fall into one of two categories: stationary or mobile properties. Stationary tiny homes stay put, while you can move mobile ones from one location to another.

Can you insure a tiny home?

You can generally insure a tiny home, but the process could be more complicated than buying a standard home insurance policy. Coverage needs also vary by the type of tiny houses you have.

For example, mobile tiny homes might be eligible for RV insurance if the homes meet certain building standards. But DIY mobile tiny homes that don’t meet specific standards could be harder to insure.

Best tiny home insurance companies

Not all home insurance companies sell insurance for tiny homes, so it’s important to know where to look for it. Proper Insurance, Progressive, and American Modern are three of the best companies that insure tiny homes.

Best insurer for tiny house rentals: Proper Insurance

If you plan to rent out your tiny house, Proper Insurance is a good option. This insurer provides specialized coverage for rental units, and it protects you whether you rent out your property through direct bookings or a third-party service.

Pros
  • Available in all 50 U.S. states

  • Excellent Trustpilot rating

Cons
  • Potentially more expensive than some competing insurers

  • No financial strength rating from AM Best

Best insurer for mobile tiny houses: Progressive

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
4.1/10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
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A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+

Progressive is a long-standing insurance company known for its excellent RV insurance coverage. If you have a mobile tiny house, it’s worth getting a quote from this insurer. Coverage is relatively affordable, starting at just $125 per year.

Pros
  • AM Best financial strength rating of A+ (Superior)

  • Available in all 50 states

Cons
  • Poor Trustpilot rating

  • Below-average customer satisfaction rating from J.D. Power[3]

Best insurer for tiny vacation houses: American Modern

If your tiny house is also your vacation home, American Modern may offer the coverage you need. This insurer has specialized policies for vacation properties, whether you live in them full-time or just part of the year.

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The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
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JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
Not rated

If your tiny house is also your vacation home, American Modern may offer the coverage you need. This insurer has specialized policies for vacation properties, whether you live in them full-time or just part of the year.

Pros
  • Customizable coverage for vacation or seasonal homes

  • Available in all 50 states

Cons
  • Very few Trustpilot reviews

  • Quotes not available online

What tiny house insurance covers

Getting comprehensive insurance coverage for your tiny house can help protect your investment. Remember to research your state insurance requirements before shopping around. Common insurance products for tiny homes include:

  • illustration card https://a.storyblok.com/f/162273/150x150/ef76aca096/house-rental-96x96-green_017-maintenance.svg

    Dwelling coverage

    Dwelling insurance protects your tiny home’s structure following covered damages.

  • illustration card https://a.storyblok.com/f/162273/150x150/24aa72b68a/healthcare-and-medical-96x96-yellow_045-stethoscope.svg

    Personal liability coverage

    Liability insurance protects you if you damage someone else’s property, such as another vehicle in a car accident. It also covers you if someone is injured on your property and sues you for medical bills and other costs.

  • illustration card https://a.storyblok.com/f/162273/100x100/32ed42213e/personal-property.svg

    Personal property coverage

    Personal property coverage protects the personal belongings in your tiny home in case of damage.

What tiny house insurance doesn’t cover

While proper insurance protects your tiny home and finances in many ways, it doesn’t cover everything. Understanding potential exclusions is essential.

Here are some common perils not covered:

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    Damage from certain natural disasters

    You might need separate flood or earthquake insurance because your insurer probably won’t cover associated damages.

  • illustration card https://a.storyblok.com/f/162273/x/a0c151e1ba/accidental-tearing-apart-cracking-etc.svg

    Wear and tear

    Insurance companies typically don’t cover normal wear and tear. This is true for traditional homes, cars, and tiny homes.

  • illustration card https://a.storyblok.com/f/162273/150x150/75b526b26b/protection-and-security-96x96-yellow_025-spy.svg

    Intentional damage

    Insurers don’t cover intentional damage either.

Types of insurance for tiny homes

You’ll typically insure your tiny home with standard home insurance, mobile or manufactured home insurance, or RV coverage.

Where you live and the details of your home’s construction will affect the coverage you need. Your insurance needs will also differ depending on which of the two types of tiny houses you have: stationary or mobile.

For example: If you have a mobile tiny home, RV insurance can provide collision coverage when you transport it. It’s a good idea to consult with a trusted insurance agent before determining what insurance option makes the most sense for your tiny home.

See what types of insurance cover stationary and mobile tiny homes below. Specific coverage eligibility will vary depending on your tiny home.

Types of Home Insurance
Standard
Mobile/Manufactured
RV
Can it cover stationary tiny homes?YesYesNo
Can it cover mobile tiny homes?NoYesYes

Insurance for stationary tiny homes

Stationary tiny houses — sometimes called accessory dwelling units (ADUs) — are tiny houses that stay put. A traditional home insurance policy could potentially insure a tiny home if you had it built on your property, similar to other outbuildings like sheds.

Generally, tiny homes need to meet certain standards and requirements to fall under your homeowners coverage. Your tiny home may also be easier to insure if you receive a certification from the National Organization of Alternative Housing (NOAH).

Good to Know

If you built your tiny home on a secondary property or it doesn’t align with local or insurance company regulations and requirements, you may need to explore manufactured or mobile home insurance instead.

Insurance for tiny homes on wheels

If you and your tiny house are on the go frequently, you’ll likely need different coverage, such as RV insurance. This type of insurance is often a combination of liability, collision, and comprehensive coverage.

Your insurance company might also charge higher rates. When you move your tiny home often, your risk of getting into an accident increases because you spend more time on the road. You may earn lower rates if you only move your home once or twice a year.

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How to find cheap insurance for a tiny home 

The cost of insuring a tiny home can range from a few hundred dollars a year to close to a thousand. It depends on how much coverage you buy and your home’s size, features, and location.

If you’re looking for tiny home insurance, here’s how to find the best coverage:

  • illustration card https://a.storyblok.com/f/162273/x/fa11c1fe75/comparison-website.svg

    Compare quotes

    Getting quotes from multiple insurers will offer valuable insight into potential costs.

  • illustration card https://a.storyblok.com/f/162273/150x150/133faf506f/law-and-justice-96x96-green_010-agreement.svg

    Review policy details

    The cheapest insurance policy isn’t necessarily the right one for your insurance needs. Read over potential policies to understand what the policy does and doesn’t cover.

  • illustration card https://a.storyblok.com/f/162273/150x150/3b97fae014/money-96x96-blue_033-magnifying-glass.svg

    Ask about discounts

    Always ask your insurance company or agent what discounts you qualify for. Look into bundling your home insurance with auto coverage.

Tiny home insurance FAQs

Tiny home insurance can be slightly complicated, so it’s normal to have questions. The following information can help answer your remaining questions about insuring tiny houses.

  • Is insurance mandatory for a tiny house?

    If you own your stationary tiny home entirely and didn’t finance the build, you might not need insurance. But home insurance offers valuable protection, so it’s always a good idea. Mobile tiny homes will at least need insurance that provides coverage during travel.

  • Is it difficult to insure a tiny house?

    It may be more difficult to insure a tiny house than a standard home, but it’s generally not impossible. Contacting a potential insurance company can help you understand your options.

  • Does standard homeowners insurance cover tiny homes?

    Possibly. Standard homeowners insurance might cover stationary tiny homes, but it depends. Contact your insurance agent about your options if you’re thinking of building a tiny house on your property.

  • What’s the best insurance company for tiny houses?

    The best option for your tiny house varies on your specific needs. For example, Proper Insurance could be ideal if you want to rent out your tiny home, while Progressive may work for a mobile tiny home.

  • What insurance do you need if you rent out your tiny house?

    You’ll likely need specialized coverage — including higher liability insurance — if you plan to rent out your tiny home. Insurance companies like Proper and Foremost offer coverage for tiny home rentals.

Sources

  1. Data Bridge Market Research. "North America Tiny Homes Market – Industry Trends and Forecast to 2030."
  2. International Code Council. "Appendix Q Tiny Houses."
  3. J.D. Power. "Auto Insurance Customer Satisfaction Plummets as Rates Continue to Surge, J.D. Power Finds."
Jess Ullrich
Jess UllrichInsurance Writer

Jess is a personal finance writer who's been creating financial and business content for over a decade. Her work is published on Investopedia, MoneyWise, NextAdvisor, The HuffPost, and more. Prior to freelancing full-time, Jess was an editor at Investopedia, The Balance, and FinanceBuzz. Connect with her on LinkedIn.

Jess has been a contributor at Insurify since September 2022.

Katie Powers
Edited byKatie PowersAuto and Life Insurance Editor
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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