Design Tiny Homes The 5 Best Tiny House Insurance Companies of 2021 By Kiah Treece Environmental Law, J.D., University of Toledo College of Law Interdisciplinary Ecology, M.S., University of Florida Ecosystem Science and Policy, Geological Science, B.A., University of Miami Kiah is a sustainability coach who is dedicated to intentional, sustainable living and the role we can play in improving the environment for future generations. our editorial process Kiah Treece Updated December 04, 2020 Share Twitter Pinterest Email Design Tiny Homes Architecture Interior Design Green Design Urban Design Our editors independently research, test, and recommend the best products; you can learn more about our review process here. We may receive commissions on purchases made from our chosen links. Tony Anderson / Getty Images Our Top Picks Best Overall: American Modern Insurance Company Best Flexible Coverage: American Family Insurance Best for Accessory Dwelling Units: State Farm Best for Full-Time Residents: Foremost Insurance Group Best for Short-Term Rentals: Liberty Mutual Just like any home, a tiny house is an investment you want to protect. However, because of the unique characteristics of tiny homes, finding an insurance policy often isn’t as straightforward as getting homeowners insurance. Depending on your situation, you may need anything from a standard homeowners policy to RV insurance or a manufactured home policy. For that reason, the process of shopping for tiny house insurance can be confusing and frustrating. To help you get started, we reviewed a number of top insurance providers. Best Overall: American Modern Insurance Company American Modern Insurance Company Get a Quote American Modern Insurance Company is a top-rated insurer by AM Best (a credit agency) that offers tiny house insurance as part of its manufactured home policies. Coverage is broad and includes everything from liability to personal property and water damage. In addition, insurance is even available for homeowners with prior losses, lapsed coverage, and credit issues—and there are no age restrictions on the home. Standard policies include comprehensive protection, meaning the company covers everything not explicitly excluded from the policy, and, in case of a claim, it settles at the stated value of the home. Other structures, additional living expenses, and reasonable expenses—like emergency repairs—are also covered. Beyond standard coverage, American Modern offers extensive optional policies for earthquakes, vandalism, and theft of personal items and items permanently attached to the home. Tiny house owners who are interested in an American Modern policy can create an account to get a quote or contact an agent through the company's website. Why it's a fit for Treehugger: American Modern is our overall best choice because it offers a wide range of coverage options that can be specifically tailored to the needs of your tiny house. Best Flexible Coverage: American Family Insurance American Family Insurance Get a Quote Like other insurers on our list, American Family Insurance offers a range of insurance products, including everything from life and business insurance to homeowners and auto. As part of its flexible offerings, AmFam can also insure tiny houses under a number of policy types—including homeowners, personal property, RV, or manufactured/mobile home coverage. This means that you’re more likely to find a policy that fits your needs—regardless of whether your tiny house is on wheels or a foundation, parked in your backyard, or on the open road. If you’re in the market for tiny house insurance, you can also take advantage of American Family’s easy-to-use online quote tool. Plus, there are a number of discount opportunities, including bundling options for home and auto coverage, as well as smart-home, full-pay, auto-pay, and paperless billing discounts. Why it's a fit for Treehugger: American Family Insurance is our top choice for flexible coverage because it provides tiny house owners with a number of different policy types. Best for Accessory Dwelling Units: State Farm State Farm Get a Quote With a stellar rating for financial strength by AM Best, State Farm is a popular conglomerate of insurance companies that offers comprehensive homeowners policies (among other major coverage areas). If you have a tiny house that’s permanently located in the backyard of your residence, you can build a State Farm policy with coverage limits that takes the value of that tiny house into account. For that reason, this is a great option if you use your tiny house as an office or a guest house. State Farm makes it easy to get a quote online, but you will have to provide extensive information about the main house and the detached tiny house structure. Luckily, the platform makes it easy to save your application if you need to take a break, so don’t worry if you don’t have all of the necessary information ready to go. As a State Farm policyholder, you’ll also have the ability to save money by combining coverage. Why it's a fit for Treehugger: We chose State Farm as the best choice for accessory dwelling units because of the company’s homeowners policies and coverage for detached structures. Best for Full-Time Residents: Foremost Insurance Group Foremost Insurance Group Get a Quote Foremost Insurance Group offers tiny home-specific coverage, including for personal property and additional living expenses. And, while some insurance providers only issue policies to people who live in their tiny house part-time, Foremost writes policies for full-timers. Policyholders also benefit from a diminishing deductible, meaning your deductible will decrease by roughly 25% for every consecutive year you have a policy with Foremost without a paid loss. Foremost tiny house policies are available through its Travel Trailer Program if the tiny house is built by a manufacturer to Recreational Vehicle Industry Association (RVIA) standards—or that are certified by the National Organization for Alternative Housing (NOAH). A policy can be obtained through the Foremost Dwelling Fire program if the tiny house is only for personal use and is built on a foundation. These more permanent tiny houses may also be eligible for coverage under the Specialty Dwelling program. With so many options available for full-time tiny house residents, Foremost also makes it easy to get a quote. Just enter your ZIP code, and Foremost will provide a list of nearby agents. Why it's a fit for Treehugger: Foremost stands out because it offers full-time policies for both movable and more permanent tiny houses. Best for Short-Term Rentals: Liberty Mutual Liberty Mutual Get a Quote With an excellent AM Best rating, Liberty Mutual is the third-largest property and casualty insurer in the U.S. As part of the company’s broad coverage area, Liberty Mutual offers both mobile home insurance and short-term rental coverage, so you can protect your investment even when it’s earning money for you. Mobile home insurance covers the home itself (plus any attached structures), as well as personal belongings and damage or injury to third-party property. Policies are underwritten by one of several companies under Assurant (also top-rated by AM Best), and coverage is flexible so you can build a policy that fits your needs. Policyholders can then supplement their policy with HomeSharing Coverage, which is available for those who rent their tiny house for more than 31 days throughout the year. This additional coverage includes things like lost rent and additional coverage for damage to the property of guests. Why it's a fit for Treehugger: We chose Liberty Mutual as the best choice for homeowners who rent or otherwise share their tiny homes because of the comprehensive coverage for both mobile homes and home-sharing. Do I Need Tiny House Insurance? Though small, tiny houses can still require a significant financial investment, so it’s important to protect your home with insurance. What’s more, because many tiny houses are on wheels, you may face additional risks that require liability coverage; some states even require insurance if you plan to move the house. Finally, if you used a mortgage to purchase the tiny house, your lender will likely require you to buy an insurance policy. What Does Tiny House Insurance Cover? Tiny house coverage depends on the kind of tiny house you have and the type(s) of policy you select. Depending on how you use your tiny house, you may need to invest in a policy that covers damage to the structure itself, personal contents, and damage caused to the property of others (like when you’re hauling your tiny house down a highway). If you rent your tiny house on a site like Airbnb, you may want supplemental coverage. How Much Does It Cost to Insure a Tiny House? The cost to insure a tiny house varies depending on the value of your home, the amount and types of coverage you need, and your deductible—among other factors. That said, the average cost of a tiny house insurance policy is around $600 per year. How Do You Insure a Tiny House on Wheels? In general, a tiny house on wheels can be insured under an RV policy if it is built by a manufacturer to Recreational Vehicle Industry Association standards or if it is certified by the National Organization for Alternative Housing. However, if you live in your tiny house full-time, check with an agent to confirm they offer full-timer coverage, as this differs from standard RV coverage. If your tiny house does not meet the RVIA or NOAH standards mentioned above, you may still be able to insure it with a combination of renters insurance (for personal property), auto insurance (for liability), and inland marine (for damage to the structure itself). We recommend talking to an agent about what kind of policies might fit your unique needs. How We Chose the Best Tiny House Insurance Companies Insuring a tiny house can be challenging because of its unique size and features, and because it's often on wheels rather than a foundation. To help simplify the process of choosing an insurer, we identified some of the best tiny house insurance providers based on factors like financial strength (AM Best rating), coverage options, online quoting tools, and availability of full-timer coverage. Overall, we chose American Modern as the best choice for tiny house insurance because of its large variety of coverage options. The insurer also has a superior rating for financial strength—meaning you won’t have to worry about its ability to settle your claim—and an easy-to-navigate website that makes it convenient to find an agent.