Many people have been asking what’s the deal with Tiny House insurance, do you need it? who are the insurance providers? we answer all your nitty-gritty questions and more in this in-depth 2022 guide.
Even though living in a tiny home sounds exciting, always remember that the risks that come with owning this type of structure can be pretty huge when you have to consider that your investment can be moved from A to B. That is why having tiny house insurance is a must.
Here are the main reasons to consider insuring your tiny house
- Protecting your investment from fire, weather, theft and etc
- 3rd party insurance for moving your tiny house yourself
- A supplementary Home warranty on hard-to-replace tiny appliances
Regardless of the type of tiny home structure, you’re planning to build, you may need to take out mobile home insurance or RV insurance. Both of these insurance policies will protect your tiny home structure along with all your personal belongings from unforeseen circumstances like theft, fire, and falling objects. Also, these policies include liability insurance which is great when dealing with a lawsuit or medical payments coverage just in case a guest gets injured in your home.
Before diving into the nitty-gritty of tiny house insurance, always keep in mind that these policies aren’t one size fits all. And just so you know, the best tiny house insurance firms boast impressive customer service, robust insurance policy options to choose from, and fair pricing in terms of insurance premiums.
And the most important part is that the best tiny house insurance providers have a robust financial strength, which goes a long way in proving their ability to compensate policyholders after a covered loss.
Today’s post will bring you up to speed on everything you need to know about tiny house insurance as well as a list of some of the best tiny house insurance providers. Let’s delve deeper, shall we?
Is tiny house insurance all that important?
Like traditional housing, having insurance for your tiny home is a pretty big deal. Regardless of the size of your tiny home, it’s always a smart move to protect your home by taking out an insurance product or products. Just so you know, custom-built tiny homes can run anywhere from $25,000 for a 160 SQ ft structure to $150,000 for a 400 square feet home. Either way, these structures cost a lot of money and shouldn’t be left without insurance.
Having insurance cover for your tiny home is a safety net for when something unexpected goes wrong. So long as you have insurance cover for the peril, you should be pretty much able to get things back without sweating it.
Tiny house insurance coverage
Whether you live in a tiny home or a traditional structure, always remember that hazards are bound to happen and you never know when. That said, the type of tiny home insurance coverage you’ll need for your home depends on how you designed, built, and use your tiny home. Read on to learn about some essential components that come with full-coverage tiny house insurance.
- Personal property coverage: This type of tiny home insurance coverage covers all your personal belongings, including jewelry and electronics.
- Transportation coverage: This coverage covers your structure when you change location.
- Dwelling Coverage: This type of tiny house coverage is also called home coverage. This coverage usually covers your home in case of damage from a specified period. Some experts also refer to it as a covered risk.
- Riders: This coverage covers other details not featured in other coverages.
- Personal liability coverage: This coverage is pretty important as it covers injuries to guests in your home. That said, always remember that you can purchase additional liability converge, especially one with an umbrella policy.
Note: Before applying for any insurance policy for your tiny home, make sure it comes with a deductible you can afford.
How much would it cost to insure a tiny house?
Like we mentioned earlier, there is no one-size-fits-all when it comes to tiny house insurance. What we mean here is that the cost of insuring your tiny home structure depends on a number of factors, including the value of the structure, your deductible as well as the amount and types of coverage you’re looking to take out for your home. That said, the average price of a tiny home insurance policy hovers between $200 to $600 annually.
Types of tiny house insurance products
Like we mentioned right from the get-go, living in a tiny home comes with a lot of excitement, enough to distract many tiny home enthusiasts from thinking about taking out an insurance cover for their home. That said, it’s always a smart move to figure out how you’re going to set up your insurance program before you even commence your tiny home project. Without mincing words, insurance for tiny homes is just as important as checking through local zoning laws for tiny home structures.
And this is because the insurance products available to you are pretty much related to the way you build and use your home. Read on for some of the best insurance options for your tiny home.
RV insurance for tiny home
If you plan to move very often, then taking out RV insurance for your tiny home wouldn’t be such a bad idea. This type of tiny home insurance is designed for life on the road. Plus, it features unique provisions that you’ll not find with other tiny home insurance products. For your home to qualify for an RV insurance policy, it has to be compliant with all the standards stipulated by the Recreational Vehicle Industry Association (RVIA).
RV insurance coverage includes:
- Collision: This insurance coverage covers you in case your home collides with something or another car runs into your home.
- Personal property: This insurance coverage under RV insurance covers all your personal belongings in case of theft or damages.
- Comprehensive: This insurance coverage covers fire, hail, and flood. That said, it requires special riders.
Renters insurance is a brilliant way tiny homeowners can cover their personal property and personal liability. The cool part is that this insurance cover is cheap. And just so you know, the average renters’ insurance covers about $20,000 of your personal items. It also covers $100,000 worth of personal liability for a meager $200 or less per year.
That said, make sure your insurance coverage includes replacement costs and not actual cash value. While cash value policies are a lot cheaper, if you lose your belongings, you may end up spending more than the company is willing to reimburse you for.
Mobile/manufactured home insurance
If you plan on parking your property for the long haul, you’ll find mobile or manufactured home insurance worth checking out. Thanks to the rise of tiny home communities, this insurance policy is gaining a lot of traction.
This insurance policy for tiny homes offers tons of coverage, including:
- Personal property
- Personal liability
- Physical damage
For more robust coverage, you can also take out a trip collision rider to the policy.
Home warranty for tiny houses
Insurance doesn’t cover everything and this is when a home warranty can be a cheaper supplementary measure in case of an important appliance breaking down when that’s not readily replaceable or your homes HVAC, plumbing, and or solar electrical systems go out and you need a quick and seamless replacement without the bearing a significant cost.
Many appliances big and tiny are inherently meant to fail, some do die earlier than others. So depending on your state we recommend a home warranty policy as a fail-safe to your tiny house investment choice and can save you the run-around and headaches when an important component goes out.
Note: Tiny house appliances are not mainstream as simply going to a big box retailer in your area to replace a bad component and that’s why having a home warranty for your tiny house can be a cheap and fast fix without worry.
Best tiny house insurance providers
Now that you know a thing or two about tiny house insurance, it’s time to take you through a list of the best tiny house providers.
Progressive tiny house insurance
Progressive Tiny House Insurance is among the top-rated insurance companies offering tiny house insurance under its manufactured home policies.
The company offers robust coverage, which includes everything from water damage to liability to personal property. Let us also add that the company offers tiny home insurance with no age restrictions on the structure.
The only caveat with this company is that they don’t offer a standard home insurance policy for tiny homes. What this means is that tiny homeowners have to rely on the mobile/manufactured home insurance policy the company offers. Similarly, Progressive doesn’t provide coverage for tiny homes on wheels, especially for structures that move quite often.
If you still want to give the company a try, you can simply create an account on their website to get a quote. Or better still, you can contact an agent via the company’s website for more information.
State Farm has earned its place as one of the best insurance firms. Thanks to its stellar ratings from many of its satisfied clients, the company has become the go-to option for people looking for a robust insurance policy for their homes.
If you have a tiny home that is permanently fitted in your backyard, you can take out a State Farm policy with exciting coverage limits that take into cognizance the value of the home. To this end, State Farm tiny home insurance will make a great option if you’re using your tiny home as an office space or a guest house.
One thing you’ll love about State Farm is that they make it easy for customers to get a quote online. However, you’ll need to provide extensive information about the main structure on your property, as well as the tiny house structure in your backyard.
Thanks to State Farm’s insurance policy, tiny homeowners can save a lot of money by simply combining different coverage.
Geico tiny house insurance
Geico tiny house insurance ranks as one of the most reliable insurance companies on the market. Their insurance policy for tiny homes will make a great choice for tiny home enthusiasts looking to insure a vacation tiny home they use seasonally.
Besides their robust financial strength, a highly responsive 24/7 customer service team, and nationwide coverage, the company also offers a few add-on policies that are uniquely tailored to customers’ needs. Since the company offers RV insurance and mobile/manufactured home policies, the company will make a great choice if you’re looking to insure a tiny home structure with wheels or foundation.
With Geico’s mobile/manufactured home insurance policy, you get standard coverage, including perils like explosions, fire, and falling objects. Their standard coverage also includes medical payments and liability coverage. They also have a range of optional policies you can use to upgrade your coverage.
If you have a tiny vacation house built on a travel trailer, you can take out an RV policy option.
Mac Insurance Inc
Are you looking for robust tiny house insurance for your tiny home structure? Well, you’re in luck today as Mac Insurance tiny house has everything you’re looking for and more. This company offers a variety of insurance products, including life and business insurance products, as well as homeowners and auto insurance policies.
As part of the company’s flexible insurance offerings, they have designed their insurance products to cover tiny homes under a number of policies, including RV, homeowners, manufactured/mobile home coverage, and personal property. With this option, we have no doubt that you’ll find a brilliant policy for your tiny home, regardless of whether your tiny house is on wheels or fitted on a permanent foundation.
If you’re interested in tiny home insurance for your structure, you can take advantage of the company’s easy-to-use online quote tool. Plus, the company offers lots of amazing discount opportunities, including bundling options that cover home and auto insurance products.
Frequently asked questions about tiny house insurance
Do tiny homeowners need to take out tiny house insurance?
Despite the limited space that comes with tiny homes, these structures still need a robust financial investment. To this end, they will need to be protected just like you’ll typically do with traditional homes.
Unfortunately, since the majority of tiny homes are built on wheels, you may encounter additional risks that require liability coverage. More so, some states require that all homeowners have insurance before moving into their properties. And just so you know, if you used a mortgage to secure your tiny home, your lender will most likely instruct that you take out an insurance policy for the property.
What does tiny home insurance really cover?
Tiny home insurance coverage greatly depends on the type of structure you have as well as the type of policy you qualify for. Depending on how you plan to use your tiny home, you may need to take out an insurance policy that covers any type of damage to your structure, your personal belongings as well as damages to other people’s property. This is especially important if you plan to haul your tiny house down the highway from time to time.
If you’re renting your tiny home on sites like Airbnb, you may need to take out what’s called supplemental coverage.