The biggest home trend of 2020? Minimalism and downsizing. Giant houses loaded with fancy cars and furniture isn’t every homeowner’s dream now. Tiny homes have become increasingly popular throughout America, especially with younger homeowners. Becoming a homeowner is now a viable option for millennials who once thought the dream was impossible. The hardest part of owning a tiny home isn’t figuring out where you’re going to put everything and downsizing, it’s actually insuring your tiny home.
Now if you know anything about
homeowners insurance, it’s that your insurance is determined by:
- Where you live
- How old your house is
- Previous claims on your home
- How big your house is
If you built a brand-new tiny home, you would assume it’d be way less to insure. Tiny homes are obviously way smaller than a regular home, and it doesn’t have any past claims since it’s brand new. However, there are some other things that you may not have considered risks to tiny homes.
How Much Insurance Does My Tiny Home Need?
Since tiny homes are a recent trend, there’s not a lot of insurance protocols on them. Everyone has a different use for their tiny home, which makes it a little harder to give a definite answer as to how much you should expect to pay in tiny home insurance. However, whether you use it to “live off the grid,” rent it out as an AirBnb, or decide to travel across the country with your tiny home, you will need insurance. Today, we’re going to share what costs you more in insurance.
Zoning Regulations and Building Codes
Your location will still affect your homeowners insurance. However, your tiny home’s location will also affect your eligibility for home insurance. More urbanized and established communities are closer to safety amenities like fire hydrants or police departments. For many, part of a tiny home’s appeal is getting to live “off the grid,” away from society. Although it’s totally possible for you to plant your tiny home away from everything, try not to go too far off the grid, or you could end up paying way more in homeowners insurance and may even be denied.
Despite wanting your tiny home completely customized to your needs, your home still needs to be up to code. Depending on what neighborhood you live in, your home may need to be outfitted with additional features or designs. Before your tiny home can even qualify for home insurance, it needs to be up to code and have the proper zoning regulations.
Semi-Permanent and Permanent Residences Get Better Deals
Since tiny homes are becoming increasingly popular throughout the country. As a result, tiny home communities are quickly growing. If you don’t plan on using your tiny home for travel, consider joining a tiny home community. It’s tempting to just buy or lease your own land, but the land will need proper permits along with other safety measures before it’s considered regulated.
Even a semi-permanent residence can save you big on homeowners insurance. So even if you decide to uproot your tiny home, know that staying in one place when you’re first starting out can be a good money-saver.
Keep reading to find out what else you can use your tiny home for.
Can You Insure Tiny Homes as RVs?
Part of the tiny home appeal is getting to travel a lot more freely. Many tiny-homeowners even convert old vans and busses into livable spaces. Having RV Insurance covers parked and roadside collisions. It also covers all potential liabilities within your home. However, not every insurance provider will ensure a tiny home as an RV, and you still need to meet RV appliance installation standards before it’s considered a RV.
Many insurance providers will still require you to have a RVIA seal. If you’re planning on using your tiny home as travel home, many popular insurance providers will require your tiny home be manufactured by a certified RV builder. To be considered a recreational vehicle, the unit must be towable and can only reach up to 400 square feet. Keep in mind that many RV campgrounds will only allow tiny homes with RVIA seals. However, if RV “fulltimer” packages are often much more affordable, and are very similar to a homeowners policy. If you plan to travel frequently with your tiny home, consider getting it manufactured as an RV.
Can You Insure Tiny Homes as an AirBnbs?
Another popular and common use for a tiny home is to help generate additional income either as a temporary or full-time rental. Although it’s the perfect weekend getaway, there are additional risks with temporary renters. There’s a
few insurance companies that specialize AirBnb insurance, however, you will need additional coverage from AirBnb. On top of having to get your property to qualify as a temporary rental, you’ll also need to consider our other tips on insuring tiny homes. If you want to build a tiny home as a temporary rental, we recommend working directly with an insurance provider to see how you can save on your tiny home’s insurance.
If you want to speak to someone directly about what you need to insure your tiny home, call one of Quote Purple partners through the number at the top of the screen.
