Do I Need Homeowners Insurance for My Tiny Home?

What is the Definition of a Tiny Home?

Tiny homes are exactly what they sound like: tiny dwellings. Tiny houses can be any size, but most are between 100 and 400 square feet in size.

According to the US Census Bureau, the typical size of a newly built single-family home in 2020 was 2,333 square feet.

Tiny houses can be mobile (on wheels) or fixed (not mobile). This distinction, combined with how you utilize the home, is what determines the sort of insurance you require.

Should My Tiny House Be Insured?

Lenders are likely to insist that you have insurance on your tiny house if you utilized a mortgage or other loan to finance its purchase (the same way lenders do for traditional homes and cars). In addition, just like a standard recreational vehicle, most states mandate liability insurance if you plan on transporting your tiny house.

Insurance for your tiny dwelling is optional and not required by law. Even so, ensuring a modest house is a sensible financial move because of the size of the investment.

How Much Is Insurance For A Little House?

Insurance premiums for tiny homes can vary widely. There are a lot of variables involved, including:

• Building materials, square footage, price, and RVIA/NOAH certification of your tiny house
• What are your possessions worth to you personally
• The home's intended purpose (e.g., parked in a tiny house community or on the road 52 weeks a year)
• The extent of protection you require, including any applicable add-ons such as a "travel endorsement,"
• Details of past insurance claims
• Your financial past

Unlike mobile home insurance, which only covers the home while it is parked, recreational vehicle insurance covers the home while it is being transported, which significantly increases the risk to the insured. As for how much it will set you back, that will be determined by the amount of coverage you need and the amount of your deductible.