I’m Buying a Tiny Home…Now What?
Tiny homes have been gaining popularity in recent months. Many people are drawn to the mobility and freedom that comes with living in a tiny house. Others like the cute aesthetics of a pint-sized home. But whatever the attraction, tiny homes are the latest home trend. Perpetuated by shows like HGTV’s Tiny House Hunters, the tiny home trend seems to only be growing. However, insurance for tiny homes is relatively new and uncharted. So, if you are buying a tiny home, how does homeowners insurance work?
Insurance for tiny homes isn’t widely established quite yet. Tiny homes are a relatively new phenomenon and there are currently no insurance standard for tiny homes. Some areas have laws about the minimum size of a home. Because tiny homes are usually only a few hundred square feet, they often do not reach these minimums. This makes them difficult to insure under a typical homeowners insurance policy, even if they have a foundation and are a fixed structure. Many people choose to own tiny homes because they are able to be moved around. This also contributes to the difficulty of insuring tiny homes as regular size homes. Prior to getting a tiny home, you may want to look into how your homeowners insurance will work with it (or if it will even be applicable!). Tiny homes are still worth thousands of dollars and keeping that investment safe is important.
If your tiny home is on wheels, you may have a different insurance option. You may be able to get insurance on your tiny home with a RV or camper insurance policy. Because they are often mobile and can be hitched to a truck, you may be able to get insurance on it as an RV. However, if you plan to spend a significant amount of time living in your tiny home, you may want to get a greater amount of coverage. Accidents do happen, so you’ll want to make sure you’re protected against things that could go wrong, especially if that is your main residence. You may also want to ask about umbrella insurance. Some extra coverage could be useful in this case. Moving it around on the road can also add some risk of damage. If you get into an accident, your tiny home could be affected. Getting repairs to your home could also be costly. If you’ll be moving around a lot, talk to your agent about getting an adequate amount of coverage to help protect your tiny house from potential dangers on the road.
As the tiny home market continues to grow, insurance will adapt to these popular dwellings. Some insurance companies in the Western states are already offering specialized policies for tiny homes. Until insurance becomes widely popular, you may want to talk to your insurance agent before purchasing a tiny home. You should ask what insurance options you have in your area and how to protect your tiny home. Each individual’s situation is different and there is not one insurance policy that can be applied to all tiny homes across the country. Working with your agent will be the best way to make sure that you have insurance to help protect you financially if something were to happen to your tiny home.
Call an Encharter agent at 855.754.8299 and ask about homeowners insurance, especially before you buy a tiny home!
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