7 Things You Need to Know About Tiny Home Insurance
Tiny homes have been gaining popularity across North America, and for a good reason. They offer home buyers a home that is affordable and highly customizable. They are also energy efficient, and since they are so small, easy to maintain. They offer homeowners a simpler, more liberating lifestyle that forces you to live within your means and without ‘excess baggage.’
Finding insurance for your tiny home has some similarities to finding regular home insurance, but you should be aware of the differences. It can prove to be a little difficult to find an insurance policy for your tiny home. You will want to make sure that the structure of your home, as well as its contents, are protected. You will also want to consider any additional policies that might be helpful in the area you live, such as flood insurance.
Here are seven things you need to know about tiny home insurance.
1. How Much Tiny House Insurance Costs
There is no set price for tiny house insurance. It all depends on a variety of factors; these include:
- your tiny home’s construction, size, and value
- local zoning regulations and building codes
- the value of all of your personal belongings
- how you plan to use your tiny home (for example, parked in a tiny house community or on the road)
- your credit history
- your claims history
2. Do I absolutely need insurance for my tiny house?
Similar to conventional homes or cars, if you financed your tiny house by using a mortgage or another type of loan, your lender almost always requires you to buy insurance for it. If you transport your tiny home, you’ll require liability insurance, just like you do for a regular RV.
Legal requirements aside, it’s always a good idea to purchase insurance for your tiny house. Insurance protects your investment, so you’ll not be left empty handed should your tiny home be destroyed by fire or hurricane.
3. Personal Property Insurance
Some insurance companies will cover a tiny house on wheels under a more conventional personal property policy but you must make concessions like putting your house on a permanent or semi-permanent foundation. You must also agree to live in your tiny home on a full-time basis.
Keep in mind that personal property insurance does not include towing, so hitting the road with your tiny home requires a different type of policy.
4. RV Insurance
If you have your tiny home built on a trailer frame with the intention of being able to move freely around the country, you will need to purchase RV insurance. This form of insurance will protect you should anything happen to your home while on the move, whereas standard homeowners insurance or mobile insurance would not.
You will have to make sure that your tiny home meets any and all legal requirements for being towed. Sometimes, insurers will only insure a tiny home on wheels if it’s made by a certain manufacturer.
5. Mobile Home Policies Available for Tiny Homes
If you’re planning on moving your tiny home just a couple of times a year, or not at all, and your tiny home is not a custom build, a mobile or manufactured home insurance policy could be the solution for you.
Any comprehensive mobile home insurance policy is similar to homeowners insurance. It will cover your home, personal property and liability claims. However, it won’t cover your home or belongings while in transport. Before hooking your tiny home up to a motor vehicle, be sure to contact your broker to ensure you have the right liability coverage should you run into trouble on the road. In addition to liability, you’ll want to make sure your policy covers any damage to your tiny home, and personal property within, while in motion.
6. Named Peril Policy
This is another option in terms of mobile home insurance policies. These are inexpensive policies compared to the other options available. This is because this type of policy only covers specific causes of losses explicitly named in the policy and nothing else. This means if your tiny home happens to be damaged by a peril not listed, then the cost of any repairs will be out of pocket and not the responsibility of your insurance company. While you can save some money by going with this policy, it might not provide the peace of mind you want. Speaking with your broker will help you better understand if this policy fits the bill for you.
7. Tiny House Specific Insurance Policies
Some insurance companies offer policies that are tiny house specific. These tiny house-specific policies can help cater policies to your home, depending on the size and if you want your home to be mobile or not. Having specific tiny home insurance can definitely be beneficial since it can be tailored to your needs as a tiny homeowner. This will also ensure you are properly and entirely covered during an emergency.
While tiny home living isn’t for everyone, those who are interested can enjoy many advantages such as a minimal, eco-friendly lifestyle as well as a generally lower cost of living. Whenever you are investing your money into any kind of home, you should make sure you will be able to protect your investment. In fact, it’s a good idea to find an insurance provider to ensure you can find coverage, even before you start building.
To learn more about tiny home insurance, call Archway Insurance at 1-833-536-0529 or contact us here for all your insurance needs in New Brunswick, Nova Scotia and Prince Edward Island.