Tiny Homes have captured the imagination of people across the U.S. who want a simpler lifestyle with a smaller environmental footprint—and often a smaller mortgage. But while downsizing your living space might simplify many things in life, one thing it doesn’t necessarily make easier is insurance.
The world of tiny home insurance is evolving fast, especially in 2025, as more Americans opt for mobility, affordability, and alternative living solutions. Whether your tiny house is parked in a quiet corner of a backyard or hitched to your truck on a cross-country adventure, the way you insure your investment will depend on several key factors. This guide unpacks the types of insurance you might need, who offers the best coverage, and how to protect what may be your biggest—though smallest—asset.
What Qualifies as a Tiny Home in 2025?
The term “Tiny Homes” doesn’t just refer to small cabins or mobile trailers anymore. According to the International Code Council, a tiny home is defined as a dwelling that is 400 square feet or less, not including loft spaces. These can either be stationary (built on a foundation) or mobile (built on wheels).
Stationary tiny homes, often referred to as accessory dwelling units (ADUs), usually sit in backyards or on private lots. They can function as a primary residence or as a rental unit. Mobile tiny homes, on the other hand, are built to be transported and often resemble RVs. Your home’s classification heavily influences what kind of insurance you’ll need.
Do You Need Insurance for a Tiny Home?
If you’ve paid in full for your tiny house and it’s sitting safely in your backyard, you might wonder whether insurance is even necessary. Technically, in some cases, it isn’t mandatory—especially if there’s no mortgage involved. But here’s the thing: just because it’s not required doesn’t mean it’s not a smart move.
Tiny Homes are just as vulnerable to fires, natural disasters, theft, and liability risks as traditional homes—maybe even more so in some cases. If you financed your build, your lender likely requires coverage. If you’re renting it out short-term or seasonally through a platform like Airbnb, specialized insurance is a must. And if you’re hitting the road with your mobile unit, proper RV coverage isn’t optional—it’s legally required for travel.
Best Tiny Home Insurance Providers in 2025
Not all insurance companies are equipped to handle the unique challenges of tiny living. However, a few standout providers have earned a reputation for being tiny-home-friendly.
Proper Insurance tops the list for rental units. If you’re generating income from your tiny house, Proper offers robust coverage whether you’re renting through a third-party service or managing it yourself. It’s available in all 50 states, but it may be more expensive than other providers.
Progressive is a great choice if your tiny home is mobile. Known for strong RV coverage, Progressive offers policies starting around $125 annually, and it’s a great fit if your home meets RVIA (Recreational Vehicle Industry Association) standards.
American Modern is ideal for vacation-style tiny homes. If your tiny home is your getaway retreat—used part-time or seasonally—this company provides flexible policies to suit that lifestyle.
What Does Tiny Home Insurance Cover?
Tiny home insurance coverage works similarly to traditional homeowners’ or RV policies, but there are unique considerations. Here’s what most plans include:
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Dwelling coverage protects the physical structure of your tiny home from perils like fire, wind, and vandalism.
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Personal property coverage ensures your belongings—clothes, electronics, furniture—are covered if damaged or stolen.
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Liability insurance is essential in case someone is injured in or around your tiny home or if you cause damage to another’s property.
For example, imagine you’re renting out your tiny stationary house and a guest slips on the front steps. Liability insurance helps protect you from potential lawsuits and medical costs. Or suppose a wildfire damages your tiny mobile home parked in a forested campground. Dwelling and personal property coverage steps in to ease the financial blow.
What’s Not Covered?
Despite their charm, Tiny Homes aren’t immune to exclusions. Some of the most common uncovered events include:
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Flood and earthquake damage (typically requires separate policies)
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Wear and tear (routine aging and deterioration)
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Intentional damage (acts of vandalism by the owner or tenants)
It’s essential to read the fine print of your policy or consult with an insurance agent to avoid any surprises when you file a claim.
Types of Insurance for Tiny Homes
Insurance for Tiny Homes generally falls into three categories: traditional homeowners insurance, mobile/manufactured home insurance, and RV insurance. The type that suits you depends largely on your home’s structure and mobility.
If your tiny home is stationary and built to code on a permanent foundation, it might qualify for traditional homeowners insurance. However, it must meet local zoning regulations and often needs certification from bodies like the National Organization of Alternative Housing (NOAH).
For DIY-built tiny homes or those located on separate land that doesn’t align with local building codes, mobile or manufactured home insurance may be more appropriate. This coverage still includes dwelling and personal property protection, with flexible underwriting for unconventional structures.
If your tiny home is on wheels, especially if it’s on the move multiple times a year, you’ll likely need RV insurance. This policy covers not just the home but also liability and collision while on the road.
How Much Does Tiny Home Insurance Cost in 2025?
Insurance premiums for Tiny Homes vary widely based on location, usage, and structure. Costs can start as low as $300 per year and climb to over $1,000 annually.
Several factors impact your rate:
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Location (rural vs. urban, wildfire-prone areas)
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Home value and materials used
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Frequency of movement for mobile homes
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Whether the home is used as a rental, vacation property, or primary residence
If you’re living in your tiny home full-time in a remote area, you may pay more due to increased risks. But if your home is parked on your land with safety upgrades like fire alarms or cameras, you might qualify for discounts.
Tips for Lowering Your Tiny Home Insurance Premium
Saving on tiny home insurance is possible with a bit of strategy. Here’s how:
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Compare multiple quotes: Don’t settle for the first offer. Use online tools to explore different providers.
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Ask about bundling: Many insurers offer discounts if you combine home and auto insurance.
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Install safety features: Smoke detectors, alarms, and surveillance cameras can reduce risk and premiums.
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Limit mobility: If your mobile tiny home is rarely moved, notify your insurer—it could lead to a lower rate.
How to Choose the Right Insurance Policy
Selecting the right policy starts with understanding how you use your home. If it’s your full-time residence, comprehensive coverage is a must. If you rent it seasonally, you’ll want a policy that protects you from guest-related liability and property damage.
Speaking with an independent insurance agent can help clarify confusing terms and point you toward carriers who understand the unique needs of Tiny Homes. They’ll also be able to check your state-specific insurance requirements, which can vary greatly from California to North Carolina.
Tiny Home Insurance FAQs
Is insurance mandatory for a tiny house?
Not always, especially if the home is stationary and fully paid for. But it’s highly recommended to protect against loss or liability.
Can I insure a DIY tiny home?
Yes, but it may require mobile or manufactured home insurance. Some providers are more flexible than others with owner-built structures.
Does homeowners’ insurance cover Tiny Homes?
It can, but only if your home is stationary, built to code, and approved by your insurer. Always verify eligibility first.
What if I rent out my Tiny Home?
You’ll need a specialized policy with short-term rental coverage and increased liability protection. Providers like Proper Insurance offer this.
Can I get RV insurance for a mobile tiny house?
Yes—if your home meets RVIA standards. RV insurance is essential if you plan to travel regularly with your tiny home.
Final Thoughts
Tiny Homes may be small in square footage, but they represent a big investment in freedom, sustainability, and creative living. As this housing trend continues to grow in 2025, so does the importance of insuring these unique properties the right way.
Whether you’re stationary in a quiet neighborhood or traveling the country in your mobile haven, there’s a policy out there to protect your lifestyle. With a little planning and the right insurance partner, you can enjoy peace of mind knowing your Tiny Home—and everything in it—is covered.
Let your adventure be tiny in size but grand in security.
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