An important aspect to consider when planning, designing, building and owning your very own tiny house (wheels or not!) is getting insurance. Many traditional insurance companies may require your home to not be on wheels or may insist you not live in it full time. For RV policies, many mandate the vehicle be RVIA certified (Tiny SMART Houses certifies all the RV homes we build to completion). We also have residential build licenses so that your ADU or foundation-ready house is built to residential code). However, be sure to confirm what your local codes and zoning regulations are where you will be placing your home.
While you are looking into your insurance options, don’t forget to think about personal property theft. Home security is one safeguard (check out “Best DIY Home Security Based on In-Depth Reviews“) We’ve heard about a tiny house being stolen & pawned (make sure your THOW has hitch and wheel locks!) Another consideration is to make sure your insurance covers towing – in all aspects!
Insurance Company options
There are insurance companies that offer or specialize in tiny houses. We’ve heard Farmer’s, State Farm and Progressive may have policies. Make sure whatever agent you find, s/he is very familiar with tiny houses and all the needed loopholes. To help you out, we have affiliated with MAC Insurance Inc.. (Note, as an affiliate, we may earn a small compensation. However, our reputation is more important, so there is no pressure to use this company! MAC Insurance is located in Portland, OR – not very far from our place in Albany, OR). Nichole Miller is their tiny house specialist! (Make sure to tell them we sent you!)
Michael Carmona, the agency owner, answered some commonly asked questions:
WHO CAN BE INSURED?
We can insure you if the Tiny home is your primary home, secondary/vacation home, seasonal location, or a rental (short and/or long term).
HOW MUCH DOES IT COST?
We have seen it as low as $400 a year to as high as $1500 a year. Depends how you much you have invested into your tiny house. Tiny homes closer and above $100k can have a price tag with the insurance policy as well.
WHAT IS THE DIFFERENCE BETWEEN THIS AND A HOMEOWNERS POLICY?
Regular home insurance policies weren’t written to cover a home that has the ability to be on the move or has a chance of getting stolen.
WHAT ARE THE DIFFERENT TYPES OF COVERAGES IN A POLICY?
Coverage A – Dwelling – This is the value of your tiny house if it gets damaged. We insure as low as $25,000 to as much as $150,000. If you buy it from a builder (such as Tiny SMART House) the price of purchase is usually the Coverage A limit.
Coverage B – Other Structures – This is for your solar panels, built on decks, and other property structures that are not part of the tiny house.
Coverage C – Contents – All personal belongings inside your house. If you were to turn your tiny upside down and whatever falls out is part of your personal property. Clothing, pots and pans, TV, electronics, your bed, etc.
Replacement Cost for Contents – If you experience a covered loss of your contents, you can be assured that they will be replaced new and without depreciated value. Meaning your 5 year old TV that might cost $40 now would be replaced by a $500 TV of like and quality of today’s standard.
Theft of Contents – We can offer up to $3,000 in theft coverage for your belongings.
Theft of Tiny Home – If you are worried about your tiny house being stolen then you need this! 100% Coverage A replacement cost of the tiny house in cases of theft.
Trip Endorsement – If you’re the type of person who travels with your home or needs to move it from an old location to a new we can make sure you are always covered on the go. We offer a year around endorsement or a one-time move endorsement.
Liability – Provides coverage for inside your premise and outside your premise. If someone were to get hurt on your premise and they were to sue you this is where your liability comes in. It would help pay towards any medical bills or charges from a lawsuit. This also covers you if you were to accidentally somehow hurt someone else. Like when a snowboarder collides with another, or a fisherman hooks his buddy.”
Tell ’em we sent you!
If you decide to get a free (and easy) quote from their website (https://tinyhouseinsurance.info/) please be sure to tick “Tiny SMART House” in the “where did you hear about us” section. It helps us to know that you are doing your research too! If you have any questions about this, any other insurance companies, or other questions, please use the Tiny SMART House contact us form and we’ll be sure to connect with you!
Blog edited by Stacey Newman Weldon. When she isn’t busy helping people create their own tiny custom homes, you can find her inspiring others to discovering their sense of fun at Adventure Wednesdays