I finally bought land and put my tiny home on a permanent foundation. I removed the wheels, put it on blocks, and skirted it. I kept paying my “RV Style” insurance because it was cheap. When a storm damaged the roof, the adjuster came out. “This isn’t an RV anymore,” he said. “It’s a structure. Your policy covers a mobile trailer. Coverage denied for incorrect policy type.”
Key Takeaways
- Mobility Defines the Policy: If it has wheels and a tag, it’s an RV/Trailer policy. If it is on a foundation/blocks and tied down, it is a Dwelling/Homeowners policy.
- You Must Switch: Keeping an RV policy on a permanent home is risky. RV policies focus on collision/mobility. Homeowners policies focus on perils (fire, wind, liability).
- Foundation = Cheaper Rates: Generally, insurance for a permanent structure is cheaper than for a mobile one because the risk of a crash is zero.
- “Manufactured Home” Standards: Once on a foundation, insurers may expect it to meet HUD standards or local building codes. If it’s a DIY build without a seal, getting a “Dwelling” policy might be harder.
The “Why” (The Trap)
The trap is “Material Change in Risk.”
Insurance rates are based on how the asset is used. An RV is used for travel. A home is used for living.
If you permanently install the tiny home, you have changed the asset class. If you don’t notify the insurer, you are paying for a contract that no longer matches the reality. This gives them an easy out during a claim.
The Investigation (My Analysis of Coverage)
I checked how to insure a “grounded” tiny home.
Foremost
- The Switch: They can easily rewrite the policy from “Travel Trailer” to “Manufactured Home / Dwelling Fire.”
- The Benefit: You gain coverage for “Other Structures” (sheds, decks) and “Loss of Use” (hotels) that might be better than the RV policy.
American Modern
- The Requirement: They often require photos showing the wheels are off and the unit is skirted/tied down before writing a Dwelling policy.
Local Homeowners Agents
- The Struggle: State Farm or Allstate might still struggle to write a “Tiny Home” even if on a foundation, because it lacks a traditional deed or square footage minimum. You often still need the specialty carriers (Foremost/Lloyd’s).
[IMAGE: Photo of a tiny home on concrete blocks with wheels removed and skirting installed]
Comparison Table
| Feature | RV/Trailer Policy | Dwelling/Homeowners Policy |
| Status | Mobile (Wheels on) | Stationary (Foundation) |
| Collision Coverage | Included | Excluded |
| Other Structures (Deck) | Excluded | Included |
| Cost | Higher (Road risk) | Lower (Stable risk) |
| Liability | Campsite / Road | Premises Liability |
Step-by-Step Action Plan
- Remove Wheels & Tongue: To qualify for Dwelling insurance, make the unit look permanent. Store the wheels in a shed.
- Call Your Broker: Say: “I have permanently installed the unit. I need to cancel the RV policy and write a Stationary Dwelling policy.”
- Verify “Settlement” Coverage: Check if the new policy covers damage from “settling” or “earth movement.” Foundations shift. Standard policies exclude this.
- Add the Deck: Now that you have a Dwelling policy, ensure the value of the deck/porch is included in the “Coverage A” (Dwelling) limit.
FAQ
Can I switch back if I want to move?
Yes, but you have to cancel the Dwelling policy and buy a new RV/Trip policy. It’s a paperwork hassle.
Does a “permanent” tiny home need a Certificate of Occupancy?
For insurance, usually yes (or at least proof of utility connection). For the city, definitely yes.
Is it cheaper?
usually yes. You stop paying for “Collision” and “Bodily Injury (Auto)” coverage.