?In a time of Homeowners Insurance Headlines, tiny home insurance may provide a sigh of relief.

There are many financial puzzle pieces in the tiny home picture. First and most unique is financing. Buying a tiny home is not (YET) the same as buying a single family residence. You may decide to build your own, like I did. But if not, a professionally built tiny home doesn’t come with a 30 year mortgage. Therefore, we have to save, sell something, downsize or use other lending solutions to make the purchase.

Second is parking or placement. Renting or buying a home-site for your tiny home is also generally an out of pocket expense. Some tiny home dwellers travel around with their tiny home and pay site rates similar to RVers. Others choose to park their tiny home long-term either in a backyard, community, or their own land. Either way, most often the cost of parking is different from a single family home mortgage in which the land is included.

An important financial decision that we want to make sure we don’t forget is managing risk. When we own a tiny home we are subject to all the usual risks of home ownership. Tiny home insurance, I have found, may actually be the most straightforward of the puzzle pieces. The tiny home insurance quote I received largely mirrored a typical homeowners policy with the outlined parts of dwelling, other structures, replacement coverage, loss of use, personal liability and medical payments. An important distinction, however, is that when a tiny home is nomadic, we need to confirm coverage with our car insurance. When traveling, our tiny home is a towed vehicle.?

I have just moved from one of those states in the news where homeowners rates have increased exponentially. Due to some pre-planning, my tiny home is parked in a place that has not experienced so many of the costly weather events. Further, because the cost of replacement is much less than the cost to replace my former 2300 square feet American Dream Home, the tiny home quote is 1/6th the cost of my previous policy. Yes, tiny living can be much more affordable on the insurance front as well.?

My podcast episode this week is an interview with Martin Burlingame . Don’t miss the education on all things tiny home insurance. Then shop around to see who all is willing to insure your tiny home. My car insurance agent insures a number of tiny homes in my area. In today's insurance market tiny home insurance may provide you with a needed sigh of relief.