I downsized from a 2,000 sq ft house to a 300 sq ft tiny home. I sold the furniture but kept my $15,000 camera collection, my $4,000 MacBook, and my grandmother’s jewelry. A fire gutted the tiny home. The insurance company sent a check for the structure, but for my contents, they pointed to the “Special Limits of Liability.” My jewelry was capped at $1,000. My electronics were capped at $1,500.
Key Takeaways
- Percentage-Based Limits Don’t Work: Standard policies set “Personal Property” at 50% of the dwelling value. If your tiny home is worth $60k, you have $30k of coverage. That sounds like enough, but…
- Category Sub-Limits: Almost all policies have strict caps on specific categories: Jewelry (
1,500),Firearms(1,500),Firearms(2,500), and Electronics ($1,500). - Tiny Homes are “Content Dense”: Tiny homers usually have less “stuff” but higher quality stuff (tech, gear). You likely exceed the sub-limits.
- Schedule Your Valuables: You must add a “Personal Articles Floater” or “Scheduled Personal Property” endorsement to cover high-value items at their full appraised value.
The “Why” (The Trap)
The trap is “Unscheduled Personal Property.”
Insurers assume a standard distribution of stuff: lots of clothes, some furniture, a cheap TV. Tiny homers break this model. You might have $20,000 of camera gear in a $50,000 house.
Because theft risk is higher in mobile dwellings (easier to break into), the base policy limits liability on easily fenced items like jewelry and laptops.
The Investigation (My Analysis of 3 Carriers)
I checked how to insure a “Digital Nomad” setup in a tiny home.
State Farm
- The Solution: Personal Articles Policy (PAP).
- The Pro: You can buy this standalone. It covers “Mysterious Disappearance” (losing a ring) and has $0 deductible. It is the best way to insure high-value gear.
Foremost (Tiny Home Policy)
- The Default: Standard limits apply.
- The Fix: You can increase the “Replacement Cost on Contents” endorsement, but it rarely lifts the category caps (e.g., jewelry is still capped).
Lemonade (Renters)
- The Trap: If you park your tiny home on someone else’s land, you might try to buy Renters Insurance.
- The Risk: Renters insurance covers your stuff, but often excludes items in “trailers” or non-standard dwellings unless disclosed.
[IMAGE: Infographic showing a tiny home with icons of a laptop, camera, and ring, highlighting the “Coverage Gap” between value and policy limit]
Comparison Table
| Item Category | Standard Policy Limit | Real Value (Example) | Scheduled Property (Floater) |
| Jewelry | $1,500 | $8,000 | Full Coverage |
| Computers | $1,500 | $4,000 | Full Coverage |
| Firearms | $2,500 | $5,000 | Full Coverage |
| General Clothes | $30,000 | $2,000 | Standard Coverage |
Step-by-Step Action Plan
- Inventory Audit: Open a spreadsheet. List every item worth over $500.
- Check the “Special Limits”: Read your policy’s “Section C – Personal Property.” Look for the bullet points on theft limits.
- Buy a Floater: Call your agent. “I need to schedule my engagement ring (
5k)andmycameragear(5k)andmycameragear(10k).” Expect to pay ~1−1−2 per $100 of value annually. - Scan Receipts: Upload receipts for the expensive stuff to Google Drive. In a fire, you won’t remember the model number of your drone.
FAQ
Does my policy cover my e-bike?
No. E-bikes are “motorized land vehicles.” They are excluded from home contents coverage. You need a separate E-Bike policy.
What if I work from home?
If the laptop is “business property,” the limit might be even lower ($500 for business property off-premises). You might need a business policy.
Is cash covered?
Usually only up to $200. Keep your cash in a bank, not under the mattress.