Tiny home insurance encourages some renters to buy
In the debate between renting and becoming a homeowner, the cost of premiums can be a deciding factor.
Tiny home insurance is a type of coverage that is growing in popularity. As the cost of land and housing rises in many places, many people have looked to downsize. This trend has only accelerated with the growing popularity of minimalist lifestyles.
A tiny house is a term that usually refers to a home that is around 400 to 500 square feet or less.
Over the last decade, these very small structures have been popping up in many places across the country. As a result, tiny home insurance has become a much more serious topic than ever before.
There are many different reasons to choose life in a tiny house. Among them are the ability to declutter your life as well as to be able to afford home ownership. Some people choose these little houses as their only financially viable option to own a home. Others sell their much larger homes in order to simplify their lives.
The price of tiny home insurance is something that needs to be considered when the choice is a financial one.
When people who have been renting all their lives or who are finding their larger homes too expensive to afford, very small homes can offer an alternative. That said, the expenses associated with these structures aren’t limited to the structures themselves.
Additional costs such as land prices, utilities, commute and homeowners insurance policies must all be taken into consideration. Fortunately, the affordability of the home insurance is often seen as a selling feature.
Insurance for tiny homes is typically broken into two main categories. First, there is the coverage for tiny homes constructed by certified RV manufacturers. Those policies are the easiest to find and are the most affordable. However, for tiny homes constructed on a permanent foundation and that have not been certified as a recreational vehicle, coverage can be tougher to locate.
Still, there are certain options available. Depending on the access to local fire department, home features and certain other factors, tiny home insurance may cost around $500. That premium would include certain perils such as liability, fire, and certain other types of damage. While some tiny home owners choose to self-insure, that can be risky in the case of catastrophe or liability.