I moved into a trendy “Tiny Home Village” in Texas, paying $600/month for my lot. One night, a guest leaving my tiny home tripped over a raised paver on the “community path” leading to my door and shattered their elbow. They sued me and the village. My insurance denied the claim, stating, “The accident occurred on common property, not your leased premises,” while the Village’s insurance argued the path was “exclusive access” for my unit.
Key Takeaways
- The “Lot Line” Gap: Liability coverage in a tiny home policy usually ends at your door or the edge of your deck. It rarely extends to the community walkways or fire pits.
- HOA Master Policy is Vague: Most Tiny Home Villages are essentially glorified RV parks. Their insurance covers their negligence, not yours. If you altered the path (e.g., put out a solar light), you own the liability.
- “Loss Assessment” Coverage: You need this endorsement. If the HOA gets sued and creates a special assessment for all residents to pay the legal bill, this covers your share.
- Renter’s Liability is Weak: If you are renting the spot, you are a tenant. You need a policy that specifically covers “Tenant Liability” for the land you occupy.
The “Why” (The Trap)
The trap is “Premises Definition.”
In a standard house, you own the driveway. In a Tiny Home Village, you lease the dirt. Your insurance policy defines the “Insured Premises” strictly as the structure and the immediate footprint.
If a guest gets hurt 5 feet away on a communal path, your insurer says, “Not our land.” The Village says, “He was your guest, visiting your house.” You get stuck in a liability limbo where both insurers point fingers, and you are left paying the legal defense.
The Investigation (My Analysis of 3 Scenarios)
I analyzed how liability works in these new “villages.”
The “RV Park” Model
- Scenario: You pay daily/monthly rent.
- The Risk: You are a transient guest. The park has high liability responsibility.
- My Advice: Rely on the park’s insurance, but carry “Campsite Liability” on your own policy just in case.
The “HOA / Condo” Model
- Scenario: You own the tiny home, but the land is owned by an HOA.
- The Risk: The HOA Master Policy covers the clubhouse. It excludes the “limited common elements” (like your driveway).
- The Fix: You need a HO-6 (Condo) style endorsement or specific “Premises Liability” that extends to the lot line.
Strategic Insurance (The Specialist)
- The Solution: They can write a policy that defines the “Premises” as the specific Lot Number, not just the structure. This expands your liability bubble to the edge of the grass.
[IMAGE: Diagram showing “Your Liability Zone” (Green) vs “Community Liability Zone” (Red) vs “The Grey Zone” (Yellow path) where the injury happened]
Comparison Table
| Feature | Standard RV Policy | Tiny Home Village Policy | HOA Master Policy |
| Liability Scope | Inside the Unit + 5ft | The Leased Lot | Common Areas (Clubhouse) |
| Guest Trip on Path | Denied | Covered | Maybe (if negligence proven) |
| Loss Assessment | No | Yes (Endorsement) | N/A |
| Cost | Included | +$50/year | Included in HOA Fees |
Step-by-Step Action Plan
- Read the Lease: Does the village hold you harmless for injuries on the lot? Or do you indemnify them?
- Add “Loss Assessment”: Call your agent. Add $10,000 or $50,000 of “Loss Assessment” coverage. It costs peanuts (maybe $15/year) and saves you if the HOA levies a fine.
- Define the Premises: Ask your agent: “Does my liability cover the leased land around my unit, or just the interior?” Get it in writing.
- Lighting is Liability: If you install path lights, you are responsible for them. If one breaks and someone trips, it’s on you. Keep them maintained.
FAQ
Can I be sued if my neighbor’s house burns down and catches the community fence?
Yes. Your liability covers damage you cause to others’ property (including the HOA’s fence).
Does the Village insurance cover my house?
No. Never.
What is an Umbrella Policy?
It sits on top of your tiny home liability. If the lawsuit is $1 Million and your policy limits are $300k, the Umbrella pays the rest. Highly recommended for village living.