Types of Insurance Products that (May) Cover Your Tiny Home
When you’re dreaming big about going tiny, insurance probably isn’t the first thing to come to mind. But you should think about how you’ll set up your insurance program before you build. It’s just as important as looking up your local zoning laws.
That’s because the way you build and use your tiny house affects which insurance products are available to you. Below are the best insurance options for tiny home dwellers.
RV insurance is a good fit for tiny homeowners who plan to move locations often. It’s designed for life on the road and includes provisions that no other option offers. To qualify for an RV policy, your tiny home will need to meet the Recreational Vehicle Industry Association (RVIA) standards.
Insurance coverage includes:
Collision: Covers you if your tiny home runs into something or another vehicle runs into your tiny home.
Comprehensive: Covers fire, flood, and hail. May require special riders.
Uninsured Motorist: Covers you if your tiny home is hit by someone without car insurance.
Personal Property: Covers your personal belongings if they are damaged, stolen, or destroyed.
Notice that personal liability—coverage if someone is injured in your home—is absent. To ensure you’re fully covered, add a renters insurance policy to your insurance plan.
Renters insurance is a great way to cover your personal property and personal liability. It’s cheap: the average policy covers about $20,000 of your belongings and $100,000 of personal liability for less than $200 a year.
But there is one important note: be sure your policy covers replacement costs, not actual cash value. Actual cash value policies are cheaper, but if you lose your belongings, you will spend a lot more money replacing them than what your company will reimburse you for.
Manufactured/Mobile Home Insurance
Mobile or manufactured home insurance is an excellent option for people who plan to park their tiny home for the long haul. The rise of tiny home communities has made this option more popular in the last few years. Several states, including California, Texas, Colorado, and Florida, have tiny home communities. Most have around 30 homes. The largest boasts 200 units for rent.
Mobile home insurance standard coverage includes:
You can also add optional coverage like a trip collision rider to the policy.
Top insurance providers offering mobile home insurance include:
For a minority of tiny home dwellers, a traditional homeowners policy is the answer. The tiny home must be built on a foundation and meet certain requirements. Those requirements will be dependent upon the insurance carrier.
Home insurance policies cover:
It won’t cover transportation. This is only important during the transportation of the materials of your home. You can purchase Inland Marine Insurance to cover the contents in transit. Once the home is built to code, you can apply for homeowners policy.
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Tiny Home Insurance Specialists
There are a few companies out there offering tiny home-specific insurance products. Tiny home insurance can be used to cover most, if not all, perils you face as a tiny homeowner. What’s great about these policies is that they can be tailored to exactly what you need. You will likely have to submit inspections for your home, including electric wiring.
You can also look for insurance agencies that specialize in tiny homes. If you are getting a home custom built, your builder may recommend an agency.
Inland Marine Insurance
The name might be a little confusing. Inland marine insurance isn’t for boats. It’s meant to cover property and equipment while it’s transported over land. It’s a great way to protect your property, but it does not include personal property. If you decide inland marine insurance is right for you, be sure to supplement your policy with a product like renters insurance.