I bought land and parked my tiny home to live in while I built my dream house. I bought a “Vacant Land” policy for the lot and a “Builders Risk” policy for the main house. A storm blew a tree onto my tiny home. Denied. “Vacant Land” excludes structures. “Builders Risk” covers the house under construction. My tiny home was in insurance limbo.
Key Takeaways
- “Vacant Land” Must Be Vacant: As soon as you park a tiny home and live in it, the land is no longer vacant. The policy is void.
- Builders Risk Doesn’t Cover the RV: The policy for the new house covers the lumber and the foundation. It does not cover the temporary dwelling (tiny home) parked next to it.
- You Need a “Stationary Tiny Home” Policy: Treat the tiny home as a separate asset. Insure it with its own policy (Foremost/Lloyd’s).
- Address Confusion: You now have two structures on one address. Ensure the insurance company knows which is which (e.g., “Unit A – Tiny Home” and “Unit B – Main House”).
The “Why” (The Trap)
The trap is “Occupancy.”
Builders Risk policies usually exclude occupancy. You aren’t supposed to live in the house while building it.
You think, “I’m not living in the house, I’m living next to it.”
The insurer sees a liability nightmare. You are walking through a construction zone every day.
Furthermore, most RV policies prohibit “Full-Timing” unless specifically endorsed. If you are living on raw land for 12 months, you are a full-timer.
The Investigation (My Analysis of the Bundle)
How to cover the whole project.
The “Two Policy” Solution
- Policy 1: Builders Risk (from Zurich/US Assure) for the main house construction.
- Policy 2: Tiny Home / Full-Timer RV policy (from Foremost/Strategic) for the tiny home you sleep in.
- Liability: Ensure ONE of these policies covers the land liability. Usually, the Tiny Home policy’s “Premises Liability” is the best bet.
State Farm
- The Option: Sometimes, a local agent can write a “Dwelling Fire” policy for the tiny home and a “Construction” policy for the main house, bundling the liability. This depends heavily on the agent’s willingness.
[IMAGE: Site plan showing “Structure A (Under Construction)” and “Structure B (Tiny Home)” with coverage arrows pointing to separate policies]
Comparison Table
| Asset | Required Policy | What it Covers |
| Main House Frame | Builders Risk | Fire, Theft of Materials, Vandalism |
| Tiny Home | Tiny Home / RV Policy | Your living quarters, Contents |
| The Land | Premises Liability | Guest tripping in a hole |
| Tools | Inland Marine / Builders Risk | Theft of saw/drill |
Step-by-Step Action Plan
- Cancel “Vacant Land” Insurance: It is useless now. You need liability that covers occupancy.
- Define the Address: Put a mailbox up. Establish the tiny home as the “Temporary Residence.”
- Fence the Construction Zone: Keep the “Builders Risk” site separate from the “Tiny Home” site if possible. It helps with liability claims if a guest gets hurt.
- Notify the Lender: If you have a construction loan, they will require the Builders Risk. They don’t care about the tiny home. Don’t confuse them.
FAQ
Can I use my Renters Insurance?
No. You own the land. Renters insurance is for tenants.
What happens when the main house is done?
You switch the Builders Risk to a standard Homeowners policy. You then decide to keep the Tiny Home policy (as an ADU/Guest House) or sell the tiny home.
Is theft of materials covered by the Tiny Home policy?
No. Lumber for the big house is not “Personal Property” of the tiny home. It is “Construction Materials.”