Insuring Your Tiny Home: A Comprehensive Guide

When considering insuring your tiny home, it's important to understand that while they may be smaller in size, they are still considered properties comparable to other homes. This means they can be insured in a similar manner, with some nuances that insurers must take into account.

Understanding the Cost of Building a Tiny Home

The cost to build a traditional home in the USA averages around $150 per square foot. In contrast, the average cost to build a tiny home in the USA can reach up to $300 per square foot due to the custom nature of these homes.

Because so much of the construction of a tiny home is bespoke, the cost to rebuild it is significantly higher. This factor alone can make it challenging for some insurers who may not have extensive data on loss frequency, repair costs, or claims management.

Requirements for Tiny Home Insurance

Despite the challenges, securing insurance for your tiny home is feasible. Insurers often view tiny homes similarly to mobile homes, requiring several conditions to be met. These include:

The home must be securely attached to a permanent foundation. The home must have working utilities. It must be accessible to emergency services. The home should be within a reasonable distance from a fire department and a functioning fire hydrant.

One recommended place to start your search is with American Modern Insurance Group, a company that specializes in insuring mobile homes and is known for its expertise in this niche market.

Additional Considerations for Tiny Home Insurance

While there are insurers that do provide coverage for tiny homes, it's important to recognize that it may come with additional costs and limitations compared to standard homeowners insurance.

You will likely need to seek out independent or local agencies, as they are better equipped to find insurers willing to cover your specific situation.

In some cases, it might be more suitable to consider renters insurance, which won't cover damage to the actual structure of the home but can protect items inside.

Given the unique nature of tiny homes, the best course of action is to speak with local insurance agencies, get quotes, and gather information about what various insurers are willing to cover.

Why Isn't Insured Like Manufactured Homes?

While manufactured homes, which are also often small, are insured frequently, there are some key differences that make the insurance process for tiny homes more complex.

Manufactured homes are typically larger and built to a set of national building codes, making them more standard and predictable for insurers. In contrast, tiny homes can vary widely in size, construction methods, and features, which complicates the insurance process.

To find an insurer for your tiny home, it's recommended to work with an independent agent who can represent multiple insurance companies and find the right coverage for your unique needs.