What is tiny house insurance?

Key points

• According to the International Residential Code, a tiny house is a standalone unit of 400 square feet or less, excluding loft space.
• Most insurers require tiny homes to meet set construction and safety requirements to qualify for tiny house insurance.
• Whether your tiny home is stationary or mobile often dictates the type of coverage you can purchase.

Owning a tiny house comes with many benefits: a lower price tag, a smaller carbon footprint, and in some cases, the ability to take your home with you when traveling. But unlike a traditional house, tiny houses typically do not qualify for standard homeowners insurance. 

Depending on your insurer and state, you may be able to insure your tiny home with a manufactured homeowners policy (if it was built on a solid foundation) or a recreational vehicle policy (if it is permanently on wheels, like an RV).

The type of policy you can buy will depend on state-specific regulations regarding how the structure is classified.

What types of tiny homes can be insured?

The types of tiny houses that can be insured will vary based on zoning regulations, location and individual insurers. Many insurers also require tiny houses to be certified by the National Organization of Alternative Housing (NOAH), the Recreational Vehicle Industry Association (RVIO) or a similar association. 

For example, according to Anthony Orr, senior product analyst at Foremost Insurance, certification is required for coverage, but the certifications that are accepted can vary. “We [at Foremost Insurance] do require certification, but recognize a number of certification authorities, including RVIA, NOAH, Bildsworth, and Pacific West Associates Inc. We may also consider other certifications after reviewing their qualifications,” said Orr.  

The following certified tiny houses may qualify for a manufactured home insurance policy:

• Modular homes.
• Single and double-wide manufactured homes.
• Single and double-wide mobile homes.
• Sectional homes.
• Trailers.

When it comes to RV insurance, you’ll also need certification, and the house will need to fit into certain requirements. “Tiny houses that are permanently on wheels [and are] up to 400 square feet may be eligible for a Foremost Insurance [RV] policy,” said Orr. 

If your tiny house isn’t certified by any organization, you may have difficulty qualifying for manufactured home insurance or RV insurance. 

“Foremost does not offer coverage for homemade or uncertified tiny houses. We also do not write [insurance for] tiny houses that have wood burning stoves, are valued over $300,000, were built before 2015*, or those that are rentals or used for business,” said Orr.

*Note: Any tiny house built before 2015 may not have been built to current-day certification standards.

When shopping for tiny house insurance, make sure you give the insurance company or agent all the build details about your tiny house and provide your certifications so they can help determine if you need an RV policy or a manufactured home insurance policy. They’ll also let you know if your tiny house qualifies for coverage at all. 

How does tiny house insurance work?

While tiny houses offer many benefits, they can also be more difficult to insure based on whether they sit on a foundation or wheels, if they are self-propelled or towed and where they are located.

If your tiny house is stationary, you’ll look for an HO-7 policy, which is mobile home insurance — also referred to as manufactured home insurance. It works similarly to other types of home insurance, covering your dwelling and other structures (like a shed), personal property, personal liability, loss of use and medical payments to others. 

If there is damage to your property and that kind of damage is covered, you’ll file a claim with your insurance company. An HO-7 policy covers fewer problems than standard home insurance.

No state law requires homeowners without mortgages to insure their tiny homes, but failing to do so can result in financial hardship in the event that disaster strikes, like if your tiny house burns down.

What tiny house insurance covers

Tiny home insurance coverage depends on the type of policy you take out. 

Manufactured home insurance for stationary tiny houses

Similar to traditional homeowners insurance, these policies provide the following types of coverage:

• Dwelling. Pays to repair or replace the tiny house structure if it is damaged by a covered problem in your policy, after the deductible is met.
• Personal property. Up to a set limit, personal property covers your stolen or damaged belongings.
• Loss of use. If a covered problem damages your tiny house to the point that it becomes uninhabitable, loss of use coverage can help pay for temporary housing, food and many other living expenses above normal monthly costs while the tiny house is being repaired or rebuilt.
• Liability. If someone gets injured or their property is damaged and you are responsible, liability insurance pays their medical bills, their property damage repair bills and your legal fees if you’re sued over the matter.
• Medical expense. If a guest is injured in your tiny house — like if your steps are icy and they fall and injure themselves — medical expense coverage pays their more minor medical bills, regardless of who was at fault.

RV insurance for tiny houses on wheels 

If your tiny house is permanently on wheels and certified by RVIA or a similar organization, you may need an RV policy. These policies function similarly to car insurance, meaning you can select coverage options such as liability, collision and comprehensive, among other options. 

How comprehensive of an RV policy you need will depend on if you live in your mobile tiny home full-time or part-time. 

Some important coverages to consider for a mobile tiny home include:

• Comprehensive. Comprehensive coverage pays for repairs due to problems such as fire, theft, animal collisions like hitting a deer, hail storms and other weather-related damages to your tiny house. 
• Collision. Collision coverage pays for repairs to your tiny house if it’s involved in a collision outside of a car accident, like if you drive your tiny house into a guard rail or a tree. 
• Liability. This level of coverage provides bodily injury and property damage coverage in the event that you cause a wreck with your mobile tiny house which results in injury and/or damage to someone else or their vehicle. Liability insurance does not cover any expenses you incur as the at-fault driver. You need liability coverage in nearly all states to legally drive on public roads. 
• Full timer liability. If you live in your RV six or more months out of the year, you can add this type of extra coverage to pay for any other people’s injuries in or around your tiny house that you’re liable for, up to policy limits. This type of policy is offered by some insurance companies and is more robust since you live in the RV full-time and likely need more coverage than a standard RV policy. It works similarly to liability coverage in a homeowners policy.
• Personal effects coverage. This is similar to personal property coverage in a homeowners policy, it pays to replace your belongings if they’re damaged in a covered collision or by a covered problem in your comprehensive coverage, like a fire. Standard car insurance doesn’t include personal effects coverage — this is exclusive to RV insurance. 
• Pet coverages. Some insurance companies, like Allstate, provide this coverage to pay for RV accident injuries to your dog or cat. 
• Towing and labor costs coverage. This pays to replace your RV with one of the same year and model in the event your RV is totaled. 
• Uninsured/underinsured motorist coverage. This covers repair and medical costs if you get into a car accident with a driver who doesn’t have insurance or is underinsured. 
• Medical payments coverage. This covers medical expenses if you or one of your passengers is injured in a covered RV accident. 

The company you purchase RV insurance from will also determine how you’re covered. For example, Geico’s enhanced RV insurance includes replacement cost coverage for your belongings, emergency expense coverage and medical payments coverage.  

Learn more about auto insurance coverage: How car insurance works

What tiny house insurance doesn’t cover

If you own a tiny house that meets mobile or manufactured home insurance policy requirements, it’s important to understand that these policies typically have several coverage exclusions. These can vary based on the type of house, location and insurer. 

Common exclusions include damage caused by earthquakes or floods and any accidents that take place when a stationary house is being moved from one location to another.

If you use RV coverage for your tiny house on wheels, this type of coverage typically doesn’t include damage from general wear and tear, rot, fungi or mold damage. It also doesn’t cover repairs due to delamination, a process where the outer covering of the home starts separating. 

How much does tiny house insurance cost?

The cost of tiny house insurance can vary substantially based on whether an owner uses mobile/manufactured home insurance or RV insurance. 

“Just as insurance pricing for traditional, full-sized homes can vary based on a variety of factors, premiums for tiny homes can similarly vary. Some variables that affect the final premium include the unit length, age and value along with selected coverages and deductibles,” said Orr. 

Here are how different factors can affect the cost of tiny house insurance:

Policy limits. How much coverage you need to adequately protect the value of your tiny house has a direct impact on how much a policy costs, with higher-valued tiny houses typically resulting in higher premiums.

Policy add-ons. Standard insurance policies typically cost the least, but create a higher level of risk if something happens to your tiny home that isn’t covered. Adding additional types of coverage can provide peace of mind, but will likely cause your rates to increase.

Deductibles. Deductibles also directly impact your rates, with higher deductibles equating to lower premiums. That said, you should never set your deductible so high that you cannot afford to pay for the remaining repairs. Home insurance requires deductibles for property damage and RV requires them for a comprehensive or collision claim. 

Location. As with standard homeowners insurance, location impacts your rates. If you live in an area prone to weather-related incidents or regions with higher rates of crime or vandalism, you will likely pay more than someone who doesn’t face either of these issues.

Safety features. Tiny houses equipped with safety features such as smoke detectors, deadbolt locks and security systems often clinch lower premiums as these types of properties typically have fewer claims than those without them. 

Where to buy insurance for your tiny home

Many major insurance companies offer mobile/manufactured home or RV insurance. Allstate, State Farm, Geico and USAA offer mobile/manufactured home insurance and RV insurance. Some specialty insurers, like Foremost, provide insurance policies specific to tiny homes. 

The Tiny House Alliance of USA provides further information about the range of insurers offering tiny home insurance. Some of these are regional while others have a multi-state or national reach. As with any insurance, get quotes from multiple companies to compare coverage as well as costs.

Tiny house insurance FAQs