Tiny homes are extremely trendy right now. You may have watched a show about these little abodes on HGTV or noticed your friends “pinning” pictures of their “dream tiny house” on Pinterest. Many people are beginning to dream of a simpler, less cluttered, environmentally friendly way of life that a tiny house may offer. They come in many unique shapes and sizes. From edgy modern to log home chic, these small homes typically offer everything a “normal” home has to offer except extra space.
A tiny house isn’t just a small home, it’s much smaller. Tiny houses usually range in size from 120-400 square feet. According to the National Association of Home Builders (NAHB), at the end of 2015 the average new home size was 2,736 square feet. Homebuyers interested in tiny homes must be very committed to a much simpler way of life and area small minority as only 1% of homebuyers acquire homes with less than 1,000 square feet.
Tiny homes can be built in numerous ways, such as “built from scratch” by the homeowner or created out of an old bus or shipping container. However, if the homeowners would like to insure their tiny home they must be built by a certified RV manufacturer with a VIN number attached to the home or they should be built on a permanent foundation. Tiny homes purchased or built any other way will find purchasing insurance more challenging if not impossible.
However, just recently, Lloyd’s of London has indicated that they have a market available for tiny homes in Colorado written on a DP1 form (actual cash value). Please keep in mind that these policies will be written on an account by account basis based on actual underwriting of the tiny home.
If you are considering building or buying a tiny home, please contact our office and we can check on what coverage options or policies would be available to you in insuring your home. Again, please remember, if insuring your tiny home is important to you, you will want to have it built by a reputable and certified tiny house builder that issues VIN numbers or have one built by a builder on a permanent foundation. Just make sure to do your research!
So, are you ready to embrace the tiny home lifestyle?