Tiny Home Insurance: What to Know
Proper Insurance, Progressive, and American Modern are a few of the best options for tiny home insurance.
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The tiny home concept has grown in popularity during the past decade. Market research firm Data Bridge estimates the tiny house market in North America was worth $2.15 billion in 2022, the most recent year for which data is available.[?]
These homes have a smaller price tag and carbon footprint. Insuring these unique properties can be more challenging than getting traditional homeowners insurance, but tiny home insurance is available and important for protecting your investment.
Here’s what you should know about getting a tiny house insurance policy.
Quick Facts
You might be able to add a stationary tiny home to your homeowners policy, but it depends on local laws and insurance company regulations.
Modular home insurance is an alternative for stationary tiny homes that don’t qualify for a standard policy.
Tiny house owners may need RV insurance for mobile tiny homes.
How does tiny home insurance work?
While some traditional home policies can cover tiny homes that meet applicable regulations and requirements, you might need to seek out specialty coverage for modular homes, mobile homes, or recreational vehicles (RVs).
You might not technically need insurance if you own a stationary tiny home outright, but it can protect your property and personal belongings from perils like fires, wind damage, and other issues caused by natural events. If you live in an area prone to floods or earthquakes, you’ll probably need additional coverage.
If you have a mortgage or took out another loan to build your tiny home, your lender will likely require proper insurance. And if you’ll be moving your home around, you’ll likely need additional coverage to drive it on the road.
The cost of your tiny home insurance will vary based on several factors, including your home’s size, value, location, types of coverage you chose, and more. Contacting a licensed insurance agent can help you get more information about coverage and provide insight into potential insurance premiums.
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What is a tiny home?
The International Code Council, an American nonprofit that helps develop building codes and standards, defines a tiny home as a home with 400 square feet or less. Total square footage excludes loft spaces.[?]
Generally, tiny homes fall into one of two categories: stationary or mobile properties. Stationary tiny homes stay put, while you can move mobile ones from one location to another.
Can you insure a tiny home?
You can generally insure a tiny home, but the process could be more complicated than buying a standard home insurance policy. Coverage needs also vary by the type of tiny houses you have.
For example, mobile tiny homes might be eligible for RV insurance if the homes meet certain building standards. But DIY mobile tiny homes that don’t meet specific standards could be harder to insure.
Best tiny home insurance companies
Not all home insurance companies sell insurance for tiny homes, so it’s important to know where to look for it. Proper Insurance, Progressive, and American Modern are three of the best companies that insure tiny homes.
Best insurer for tiny house rentals: Proper Insurance
If you plan to rent out your tiny house, Proper Insurance is a good option. This insurer provides specialized coverage for rental units, and it protects you whether you rent out your property through direct bookings or a third-party service.
Pros
Available in all 50 U.S. states
Excellent Trustpilot rating
Cons
Potentially more expensive than some competing insurers
No financial strength rating from AM Best
Best insurer for mobile tiny houses: Progressive
Best insurer for tiny vacation houses: American Modern
If your tiny house is also your vacation home, American Modern may offer the coverage you need. This insurer has specialized policies for vacation properties, whether you live in them full-time or just part of the year.
What tiny house insurance covers
Getting comprehensive insurance coverage for your tiny house can help protect your investment. Remember to research your state insurance requirements before shopping around. Common insurance products for tiny homes include:
What tiny house insurance doesn’t cover
While proper insurance protects your tiny home and finances in many ways, it doesn’t cover everything. Understanding potential exclusions is essential.
Here are some common perils not covered:
Types of insurance for tiny homes
You’ll typically insure your tiny home with standard home insurance, mobile or manufactured home insurance, or RV coverage.
Where you live and the details of your home’s construction will affect the coverage you need. Your insurance needs will also differ depending on which of the two types of tiny houses you have: stationary or mobile.
For example: If you have a mobile tiny home, RV insurance can provide collision coverage when you transport it. It’s a good idea to consult with a trusted insurance agent before determining what insurance option makes the most sense for your tiny home.
See what types of insurance cover stationary and mobile tiny homes below. Specific coverage eligibility will vary depending on your tiny home.
Types of Home Insurance  | Standard | Mobile/Manufactured | RV |
|---|---|---|---|
| Can it cover stationary tiny homes? | Yes | Yes | No |
| Can it cover mobile tiny homes? | No | Yes | Yes |
Insurance for stationary tiny homes
Stationary tiny houses — sometimes called accessory dwelling units (ADUs) — are tiny houses that stay put. A traditional home insurance policy could potentially insure a tiny home if you had it built on your property, similar to other outbuildings like sheds.
Generally, tiny homes need to meet certain standards and requirements to fall under your homeowners coverage. Your tiny home may also be easier to insure if you receive a certification from the National Organization of Alternative Housing (NOAH).
Good to Know
If you built your tiny home on a secondary property or it doesn’t align with local or insurance company regulations and requirements, you may need to explore manufactured or mobile home insurance instead.
Insurance for tiny homes on wheels
If you and your tiny house are on the go frequently, you’ll likely need different coverage, such as RV insurance. This type of insurance is often a combination of liability, collision, and comprehensive coverage.
Your insurance company might also charge higher rates. When you move your tiny home often, your risk of getting into an accident increases because you spend more time on the road. You may earn lower rates if you only move your home once or twice a year.
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How to find cheap insurance for a tiny home
The cost of insuring a tiny home can range from a few hundred dollars a year to close to a thousand. It depends on how much coverage you buy and your home’s size, features, and location.
If you’re looking for tiny home insurance, here’s how to find the best coverage:
Tiny home insurance FAQs
Tiny home insurance can be slightly complicated, so it’s normal to have questions. The following information can help answer your remaining questions about insuring tiny houses.
Is insurance mandatory for a tiny house?
If you own your stationary tiny home entirely and didn’t finance the build, you might not need insurance. But home insurance offers valuable protection, so it’s always a good idea. Mobile tiny homes will at least need insurance that provides coverage during travel.
Is it difficult to insure a tiny house?
It may be more difficult to insure a tiny house than a standard home, but it’s generally not impossible. Contacting a potential insurance company can help you understand your options.
Does standard homeowners insurance cover tiny homes?
Possibly. Standard homeowners insurance might cover stationary tiny homes, but it depends. Contact your insurance agent about your options if you’re thinking of building a tiny house on your property.
What’s the best insurance company for tiny houses?
The best option for your tiny house varies on your specific needs. For example, Proper Insurance could be ideal if you want to rent out your tiny home, while Progressive may work for a mobile tiny home.
What insurance do you need if you rent out your tiny house?
You’ll likely need specialized coverage — including higher liability insurance — if you plan to rent out your tiny home. Insurance companies like Proper and Foremost offer coverage for tiny home rentals.
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