You finally did it. You downsized, bought a gorgeous $80,000 custom tiny home, and parked it on a leased piece of paradise in the woods. You have a compost toilet, a wood stove, and immense financial freedom. One evening, a stray ember from the stove catches the cedar siding on fire. Half the structure burns before the volunteer fire department arrives.
You call your insurance agent to file a homeowners claim, expecting a check to rebuild your dream. The adjuster asks one simple question: “Does it still have the wheels on it?” When you say yes, the silence on the other end of the line tells you everything you need to know. Your claim is denied.
The Brutal Truth: Why Standard Policies Deny This Claim
If your tiny home has wheels, axles, or a hitch, it is not a house in the eyes of an actuary. It is a vehicle. Standard HO-3 Homeowners Policies strictly exclude coverage for mobile structures through the Mobility Exclusion.
If you bought a standard auto or RV policy, you are still in danger. RV policies are rated for recreational travel. If the insurance company discovers you are living in it full-time (triggering the Full-Timer Exclusion), they will void the policy for material misrepresentation. On the flip side, if your tiny home is built on a permanent foundation but was a DIY project without municipal permits, standard carriers will deny coverage based on Non-Standard Construction and failure to meet local building codes. You are stuck in an underwriting no-man’s-land.
How to Actually Protect Yourself (The Fix)
You cannot force a square peg into a round hole. You need a highly specialized policy designed specifically for the tiny home movement.
- Look for NOAH or RVIA Certification: Most specialty insurers require your tiny home to be certified by the National Organization of Alternative Housing (NOAH) or the Recreation Vehicle Industry Association (RVIA). This proves the home’s electrical and plumbing won’t spontaneously combust.
- Buy a Specialized “Tiny Home” Policy: Carriers like Foremost or American Modern offer specific tiny home policies that blend the Transit Coverage of an auto policy (for when you move it) with the Premise Liability and comprehensive property coverage of a homeowners policy.
- Get a Mobile Home Policy (HO-7): If your tiny home is permanently anchored to a foundation and the wheels are legally removed, you can apply for an HO-7 policy, which is specifically designed for manufactured and mobile homes.
The Claims Adjuster’s Secret
When I investigate a tiny home fire, the very first thing I look at is the undercarriage. If you bought an HO-7 (Mobile Home) policy, the contract legally requires the chassis to be permanently anchored and the wheels removed. If I find melted tires under the skirt, your policy is voided.
The Verdict (TL;DR)
The Risk Level: Extremely High (Tiny homes fall outside standard actuarial tables). The Solution: Secure RVIA/NOAH certification and purchase a specialized Tiny Home or HO-7 policy. Estimated Cost: $600 to $1,200 annually, depending on value and location.