Tiny House Insurance: What You Should Know
One of the hottest trends in home building is the tiny house—a small structure averaging 400 square feet. Although tiny houses often exist on a foundation or cement slab, most have wheels and provide a great deal of freedom. But many have no indoor plumbing, and finding a piece of land for the home is sometimes troubling.
Still, young and old homeowners are embracing the tiny house. The question is, however, how can you insure such a house that brings along its own unique needs? While several insurance companies now offer coverage for these small abodes, issues often arise when it comes to tiny house insurance.
Issue #1: Not Certified Like Recreational Vehicles
Most vehicle insurance carriers insure recreational vehicles. Tiny houses do not carry the same type of RV and camper certification, however, which states that the structure meets national highway safety standards. This makes insurance carriers reluctant to take the risk.
Issue #2: Car Insurance Only Covers Trailers
Your vehicle insurance will probably cover the trailer, but it will not cover the load you are carrying on the trailer—your house. Some auto insurance carriers provide separate insurance for the “load” only when you take it on the road.
Issue #3: Not Built By Licensed Contractors
Homeowners see a tiny house as a fun DIY project. But insurance companies will not insure a typical homeowner during construction with a builder’s risk policy. Only licensed and bonded contractors can usually get this type of coverage.
Issue #4: Liability Insurance Unlikely
If you rent a tiny house, you may have difficulty getting renters insurance. While you may have some luck finding renters insurance that covers your possessions, it could be a challenge to get protection in case a guest falls off your porch and breaks a leg. This is due to the fact that insurance companies want to know your tiny house was built to code and has no defects that could increase the possibility of such an incident.
Insurers also want to know where the structure is located. You may find getting renters insurance troublesome if you temporarily park your tiny house in someone’s backyard or if you constantly move it.
It’s Not All Bad News, Though
Tiny house insurance is more abundant now than in the past. In some states, you can get full insurance for a tiny house, whether it was once an RV, it was built by a licensed contractor or was built by you, the homeowner. In other states, some insurance companies are willing to insure tiny houses, as long as those houses carry the same warranties as recreational vehicles and campers. To know the specifics about tiny house insurance options in your state, contact us, your local independent insurance agent.
Call an Independent Agent for Help With Tiny House Insurance
Wherever you live, it is best to work with an independent agent or broker to determine both your tiny house insurance needs and the coverage opportunities available. Your agent can sift through the possibilities and recommend your best options. To learn more about tiny house insurance, call an independent broker or agent, contact us.
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