Tiny home insurance: Coverage options, costs and how to get insured

What counts as a tiny home?

According to the International Residential Code (IRC), a tiny house is defined as a dwelling of less than 400 square feet. As with a traditional home, there are building codes that must be met, including minimum ceiling heights and loft requirements.

So, can you get insurance for a tiny home? Yes, but you may have to shop around to find an insurer that offers precisely what you need.

“The reason insurance has been an issue for tiny houses on wheels is because they are primarily built to recreational vehicle standards, and are considered RVs, which are meant for temporary use and are not considered housing,” says Janet Thome, president of the Tiny House Alliance, a nonprofit that builds tiny homes. 

Although insurers use the IRC to define a tiny home, they may be more concerned with construction and usage when writing a policy. Three questions an insurer may ask are:

• Is the tiny home on a permanent foundation or on wheels? Insurers need to know if you plan to move your tiny house or leave it in one place.
• How is it titled or registered? Depending on various factors, a tiny home may be classified as personal property, real property, or an RV.
• How is it used? You may need different types of insurance coverage if you’re living in your tiny home full-time or part-time, renting it, using it as a guest house, or as an accessory dwelling unit (ADU), a secondary home on your property.

What are the types of tiny home insurance policies?

Typical types of tiny homes include tiny homes on wheels, on a foundation, DIY builds, ADUs and conversions. While you may qualify for insurance, such as homeowners, mobile or manufactured, RV or specialty,  your insurance needs will depend on how your tiny home is built. 

Homeowners insurance (Tiny home on a foundation)

To be considered for a traditional homeowners insurance policy, your tiny home must:

• Be on a permanent foundation
• Meet local building codes
• Be your primary residence

Even if those stipulations are met, the use of non-standard building materials, unusual utilities and a DIY build can make it difficult for you to get a traditional policy. However, if your tiny house is an ADU or secondary dwelling on your property, your homeowners insurance may cover it.

Mobile/manufactured home insurance (Some tiny homes qualify)

An insurer may offer mobile or manufactured home insurance if your tiny house is factory-built and meets specific building requirements. 

This type of home insurance is similar to a standard homeowners policy, with coverages for dwelling, liability and personal property.

RV insurance (Tiny home on wheels)

Although you may not move your tiny home often, RV insurance may be required if it is on wheels or a bus conversion. Regardless of whether your home is titled as an RV or a trailer, your insurer may require certifications, such as those from the Recreational Vehicle Industry Association (RVIA), to show that it meets building codes.

Also, if you live in your tiny home on wheels (THOW) full-time, you need the appropriate RV insurance, which differs from part-time insurance and provides more coverage. 

Specialty tiny home programs or surplus lines

DIY builds, off-grid homes or homes exposed to natural disasters may require specialized insurance. Although the tiny house will need to comply with local building codes, unique builds may require additional coverage.

For example, a tiny home in a remote location may need wildfire or flood insurance that isn’t typically included in home insurance policies. Alternatively, a DIY build may require inspections and specialized coverage, as it will be more difficult to demonstrate compliance with safety standards.

What does tiny home insurance cover?

Although finding a tiny home insurance policy can be challenging, you can still get the coverage you need with other policy types. Typically, tiny house insurance covers:

• Dwelling or structure
• Other structures, such as a shed, deck, or solar array
• Personal property
• Personal liability
• Medical payments
• Loss of use and additional living expense (ALE)

What doesn’t tiny home insurance cover?

There are several standard exclusions and types of homes that a tiny home policy may not cover.

Some factors that may make it more difficult to find insurance and excluded perils include:

• DIY builds without documentation or inspections
• High-risk heating, such as with wood stoves, composting toilets and unconventional wiring
• Theft or vandalism while in transit for a THOW
• Mold or water damage from slow leaks
• Rental activity exclusions where short-term rental riders may be needed

Replacement cost vs. actual cash value

Homes can be covered for their replacement cost, which is the cost to replace at today’s prices, or for actual cash value, which covers the depreciated value.

Determining appropriate coverage limits for tiny homes can be challenging, as many are custom-built and have few comparable builds. Some tiny home insurance companies offer replacement cost coverage, while others provide actual cash value.

It’s important to maintain documentation of replacement costs, including your build sheet, receipts and photos of the home and its components, such as a solar array.

Add-ons and special coverages tiny-home owners should consider

Your tiny house may require additional insurance coverage, as each build is unique. Consider adding these coverages:

• Scheduled personal property: Expensive items, such as tools, computers and e-bikes, often need additional coverage or increased limits.
• Sewer and water backup: Even a small sewage backup or water leak can cause significant damage in a tiny home and cleaning and repairs can be costly.
• Equipment breakdown: This coverage pays for the repair or replacement of items such as your AC, refrigerator and other appliances and systems.
• Earthquake: Most insurance policies don’t include earthquake coverage that you may need if you live or travel in an area where one may occur.
• Umbrella insurance: Additional liability coverage that kicks in once your homeowners insurance policy limits are reached.
• Flood insurance: Flood damage isn’t covered by a home insurance policy; you can buy coverage through the National Flood Insurance Program (NFIP).  

How much does tiny home insurance cost?

Tiny home insurance rates largely depend on the type of policy you need and how you use your house. For example, tiny home insurance premiums may be lower for ADUs than for THOWs because ADUs pose a lower risk of damage.

Factors that affect tiny house insurance costs include:

• Whether your tiny home is on a foundation or wheels
• Location hazards, such as wind, hail, wildfire, flood, or hurricanes
• Build certification and materials
• Coverage amount and deductible
• If the tiny home is a rental property for short or long-term use

What companies offer tiny home insurance?

Which company is right for your tiny home depends on the type of home and its location, these are some of the top companies that offer policies for tiny homes.

• State Farm. The biggest home insurance company in the country, State Farm offers several options for tiny homes, including mobile home or RV insurance policies
• Foremost. A subsidiary of Farmers Insurance Foremost is a leader in specialty insurance policies, including for mobile and manufactured homes, and can help you to choose the right policy for your tiny home. USAA mobile home insurance is underwritten by Foremost.
• American Modern. Also a specialty insurance company, American Modern provides coverage for a variety of different types of homes that don't qualify for traditional homeowners' insurance, including tiny homes. American Modern underwrites specialty policies for several major carriers, including Progressive.
• American Family. An American Family agent can help you choose the correct coverage for your tiny home generally offered through the manufactured home program (RV policies are also available).

How to qualify for tiny home insurance

Tiny home insurance companies need a lot of information about your house to write a policy, so you need to provide documentation and detailed information, such as:

• Proof of ownership, such as the title or registration
• Builder specs, certifications, or inspection reports
• Electrical and plumbing documentation
• Heating type details since some types, like a wood stove, are harder to insure
• Location details, such as the distance to a fire hydrant or station, brush clearance and roof type
• If on wheels, the VIN or serial number, towing setup, storage location and travel frequency
• If rented, the booking platform, local permitting and safety equipment, such as rails, smoke and carbon dioxide detectors

“One tip if you want to have wood heat, it is also better to install wired heat as well, not all insurance carriers approve of wood heat. Also check with your state or local jurisdiction regarding the requirements for wood stoves; they vary and are regulated by [the] EPA and should be professionally installed,” Thome says.

Tiny home insurance for vacation rentals

How you ensure a tiny home that is used as a vacation rental, such as an Airbnb, depends on where it’s located.

A secondary home on your property, called an ADU, can typically be included as a structure under a homeowners insurance policy, but if you are renting that space out, ensure your carrier knows, as it may need an endorsement or not be covered at all.

A standalone rental needs its own insurance policy.

Types of insurance coverage for rentals and ADUs include:

• Landlord policy: Used for long-term rentals and provides coverage such as liability, the structure, the landlord’s property (e.g., appliances and furniture) and loss of income.
• Homeowners endorsement: An add-on to your homeowners policy that offers specific coverage, such as for an ADU.
• Specialty short-term rental coverage: Similar to a landlord policy but for short-term rentals, including coverage for theft, vandalism and fire.

You need to be aware of liability risks when renting your tiny home or hosting guests. Risks to consider include slips, loose deck rails, injuries from a fire pit and vandalism.

Helpful home insurance tools and calculators

• Home insurance calculator
• Condo insurance calculator
• Renters insurance calculator
• When to file a home insurance claim