Prices Vary Greatly, So Do Some Price Comparisons
Insurance Will Be Required If You Finance A Tiny House
Insurance will be a requirement if you are going to finance your tiny house and is very affordable and many carriers are jumping on board because it has become a very hot market. Prices vary greatly so do some price comparisons. Always think ahead and have your insurance set up before the home leaves the builder’s site, to make sure you are covered. It often takes a few days, often photos are required, so it is better not to wait until the last minute.
How Is An Travel Trailer Or Park Model A Tiny House?
At this time, there is not one unified industry standard that is recognized for tiny homes on wheels and each jurisdiction, lender, insurance agency, etc… could have a different definition and requirements, including size and if they are allowed as a dwelling.
Most tiny home builders are building RVs built to the NFPA 1192 Standard or the Park Model Standard, ANSI 119.5 for the ability to have them certified and registered, to get a Vin number and title.
These standards address all safe health, life, and fire precautions.
The builders most always exceed the minimum requirements of these standards and build to 2 X 4 and 2 X 6 construction, increase insulation values, have 25-year roof warranties, increase truss loads when applicable, and use superior quality materials.
The beauty of tiny homes is they are custom built to order and can be built for all seasons with a focus on durability and longevity. They can also be built to any added requirements of the jurisdiction.
Park Model Or Tiny Home
Some insurance companies lump tiny homes and park models together and some companies have created separate divisions for them. Some allow wheels, some do not. Some companies allow tenant occupied, but not an Airbnb and some will allow an Airbnb.
Almost 5 years ago, my insurance was canceled 2 weeks after the policy was written because they said my park model was a tiny home. Now they are insuring both. Progress!
Certification Requirement
RV Certification is required by some companies and not required by others. Most companies want the home to be professionally built, but now there are options for self builds. There is actually only one insurance carrier that requires certification that I have listed here and that is Foremost.
Learn More About Certification
Are You Thinking Of Foregoing Insurance? Think Again
Read these stories and you might change your mind. Click Here.
Builders Risk Insurance
When choosing your builder for your tiny home, make sure the company has Builders Risk insurance that will cover your tiny home while being built and find out when the coverage stopped. You will want to have your insurance in place to avoid any gaps in coverage.
Excellent article from FitSmallBusiness regarding Builders Risk Insurance.
DIY Build
If you are building your own tiny home. There is insurance to protect your home while you are building your home.
Cautionary Tale: DIY Self Build WITHOUT Insurance Tiny House Talk
Full-Time Living Covered!
Every resource I list allows for full-time living whether it is owner or tenant occupied or an Airbnb.
Credit Counts
Your credit score counts toward the amount your policy will cost. Talk to several companies without pulling your credit to determine what is best for you, the prices range considerably. as much as a $500.00 difference.
Tiny Home Villages
If you have a tiny home village or you are going to start one, make sure you consult with your insurance company to make sure there is not a lapse of coverage with your property and outbuildings and your tenants. Get their advice on what the insurance requirements should be from your tenants including liability.
Who would clean up the mess, if someone brought a tiny home in and they had no insurance and a fire occurred? I personally lost everything in a fire because of someone else’s negligence- so I know the devastation that lack of insurance can bring.
One Policy With A Primary Residence And A Tiny Home ADU
You can also check with your primary insurance company and see if they will insure your tiny home as an ADU as a secondary residence on your property.
Transport Coverage
When choosing a company to transport your tiny home, make sure they have liability and cargo insurance and make sure their drivers are vetted.
Every Need Can be Covered In The Tiny Home Industry
- Park Model Insurance For Temporary, Vacation, Full-Time Residence
- Tiny Home Insurance With Or Without Wheels For Temporary, Vacation, Full-Time Residence
- DIY Tiny Homes With Or Without Wheels
- RV Certified And Non-Certified
- For Those Who Travel
- Airbnbs
- Tiny Home Villages And Hotels
- Trip Collison Coverage
- Rental Reimbursement For Loss Of Income
- Builders Insurance
- Under Construction
- Off The Grid
- Wood Stove As Primary Heat
- Other Structures
- Theft
- GPS Tracking
- Loss Of Contents
- Appliance Loss
- WorkCampers
- Personal Liability
- Professionally Converted Vans And Schoolies
- One Policy For Your Primary Residence And Tiny Home As A ADU
Tiny Home Insurance
American Modern
Homeowner’s Policy: Perfect Policy Meant For Owner Or Tenant Occupied
American Modern Specializes In Manufactured Home Insurance: Direct Insurance Company In All Fifty States
American Modern is now insuring Airbnbs!
Park Model: Wheels Must Stay On
The type of product they offer will consider your home as a park model style home under the manufactured home category. It is meant for a home that will not be moved around frequently, and that will stay in one spot once placed and be tied down/secured or placed on a foundation. Wheels must stay on.
The program offered is for the home located in a park or on private land
Can be full-time owner-occupied, seasonal, rental or vacant
Comprehensive coverage for The home itself, including any professionally attached structure, deck, porch, awnings, and content coverage’s for belongings
Liability coverage in the event that a neighbor slips and falls on the homeowner’s deck for example.
Can offer flood and earthquake coverage (as offered per state/program)
Primary Heat Source Must Be Electric
Home cannot have a wood stove or fireplace (supplemental source) as the main heating source- must have electric baseboard, hot water baseboard (boiler), or forced air/ducts as primary heat source
The home also must be wired for electricity, cannot be 100% solar powered. Solar must be a secondary source of power.
Details on coverage: Click Here
Trip Collision Coverage
American Modern has an excellent trip collision coverage that is priced very reasonably with a $100.00 deductible. It only lasts 30 days, but can be added when you first have your cabin delivered OR at any time you have to move it. It covers the entire cabin including tires and axles. Depending on the location, the cost is between $25 to $35.
Tiny Homes: Without Wheels
American Modern has another division just for tiny homes WITHOUT wheels.
You Can Call American Modern Directly Or Find A Local Agent
American Modern: 866-880-8651
Find An Agent ClickHere
Mary Ponsness Insurance Agency LLC: Idaho, Oregon, And Washington State
Mary And Dave Ponsness are based in Moses Lake, Wa. They specialize in Tiny Home and Park Model insurance and are a One-Stop Agency For All Insurance needs from home, life, auto, and medical.
Strategic Insurance Agency LLC: Andrea 719 476 0106
If you are going to be traveling in your tiny home and need a homeowner’s policy and you want to cover the transport because you are picking it up yourself, give Andrea a call. Strategic also offers insurance for off-the-grid tiny homes.
States they provide tiny homes insurance in are Arizona, California, Colorado, Idaho, North Carolina, New Mexico, Oregon, Tennessee & Washington. Liability limits of $50k, $100k & $300k, and a trip endorsement which is $150 for the policy term, regardless of the number of trips.
Commercial Insurance With Strategic Insurance Agency LLC
Martin Burlingame 719 476 0104 For your commercial needs
Homeowner’s Policy: Self Built And For Those That Will Travel Often: Transport Can Be Covered
Mac Insurance Company
Micheal Carmona: Agent, Owner 971-238-2502
Specializes In The Lloyd’s Of London Tiny Home Policy
Located in Portland, Oregon: Can Insure In Over 40+ States
Tiny Home Coverage Can Include:
- Personal Property
- Liability
- Manufactured Built
- RV Certified And Non-Certified
- Theft
- Coverage When You Are On The Move
- Trip Collision
Types Of Tiny Houses That Can Be Covered:
- Tiny Homes On Wheels Stationary Or On The Move
- Tiny Homes Without Wheels Or On The Move
- Park Models
- DIY Built
- Manufactured Built
- Professionally Converted Van And Schoolies
Tiny Homes Can Be Used As:
- Primary Home
- Tenant Occupied
- Second Home-Vacation Home
- Airbnb
Builder Coverage:
A builder can be covered for general liability, professional liability, business auto, and inventory
What Is The Difference Between A Homeowner’s Policy And The Tiny Home 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.
Types Of Coverage in The Tiny Home 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 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. We can do up to $50,000.
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 – Whenever you have a loss your contents will be replaced brand new and not at its depreciated value. Meaning your 5-year-old TV that might cost $40 now would be replaced by a $500 TV.
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! We provide a tracker so that if your house was ever stolen we can always have a way of finding it.
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.
Personal 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. Personal liability would also cover your tiny home if you are renting space on someone else’s property in case you cause damage on their property.
Wood Stoves- They will insurance tiny homes that have wood stoves as their primary heat!!!
Foremost Insurance Group: The only company that requires certification
Foremost Insurance Group writes park model policies and tiny home policies. When you speak to an agent, make sure they know there are separate divisions for them. It is a newer change and not everyone is up to date on this.
You can obtain Foremost insurance through a Farmer’s agent.
Photo Courtesy: Fritz Tiny Homes
Insurance For Tiny Homes: Ontario, Canada
Dave Burns is a broker with Kingston Specialty Group that can help you obtain insurance in Ontario, Canada. If you live in a different province, he can refer you to another broker. Dave can provide insurance for owner or tenant occupied and off the grid tiny homes. Dave can also provide insurance for shells. If you are from Canada and you are having a cabin built in the US, it is a good idea to talk to Dave Burns first regarding the heating choices allowed and inspections required.
The prices are very reasonable. Dave writes commercial policies as well.
David BurnsRIB (Ont.) CAIB
Account Executive
844 Gardiners Road
Kingston, ON K7M 3X9
Phone (613)634-8111
Cell (613)329-2628
Fax (613)634-5822
dburns@kingstoninsurance.ca
Guardian Risk Managers LTD
Tiny Home Insurance
As Tiny Homes increase in popularity, we have designed a Tiny Home insurance policy with coverages specifically to meet the needs of these unique homes and the exposures they face. These simple and elegantly designed homes provide owners with many benefits in shifting to this unique lifestyle. For example, owners have the flexibility to be able to use their homes however they want, giving them the freedom of mobility or to place their home permanently on a lot. Our product helps protect your clients and the investment they make in their tiny home.
Product Highlights:
- All Risk Coverage
- Replacement Cost Settlement
- Available for permanently placed and mobile units
- Competitive Rates
-
$2,000,000 Liability Limit Included
Enhanced Coverages:
- Personal Property Coverage
- Power Generator & Solar Energy Equipment Coverage
- Towing & Storage
- Fire Department Charges
- Sewer Backup
- Watercraft
This product is available on Agency Bill or Direct Bill, including their in-house financing option.
The in-house claims department will handle any claims that may arise for your client’s Tiny Home. The Guardian Risk Managers Claims Team is available 24/7, 365 days of the year for your clients.