Tiny Home Insurance

Tiny houses are all the rage in Canada. Defined as any home between 100 and 400 square feet in size, these types of homes are known for their affordability, convenience, and energy efficiency. Whether you chose to move into a tiny home to reduce your carbon footprint or for budgetary reasons, the popularity of these miniature houses is rising across North America.

While tiny homes are still a relatively new trend, more and more people have started purchasing them, which has led to the creation of tiny home insurance. With a property of any size, you want to protect it, which means making sure you have the necessary home insurance coverage.

You will want to ensure your policy covers your tiny home from risk, for example in the event of a fire, flood, hurricane, or other losses. Experienced brokers at BrokerLink are here to help you find the perfect home insurance policy for your tiny house. Keep reading to learn more about tiny home insurance in Canada.


What is a tiny house?

A tiny house is just like it sounds - it’s a very small house. Though there are no official size limits for tiny homes in Canada, they tend to fall between 100 and 400 square feet.

There are two main types of tiny homes, those that are on wheels and are moveable, and those that are stationary.

What does tiny home insurance cover?

First and foremost, it must be noted that insurance companies do not currently offer traditional homeowners’ policies to owners of tiny homes. Though this could change in the future if they continue to grow in popularity

However, there are other types of coverage out there that can give you the protection you need, and BrokerLink is here to help you find it. The type of insurance coverage for your tiny home depends on several factors, such as whether your tiny home sits on wheels, has a permanent foundation, and was factory-built or customer-built.

Since insuring your tiny home is more complicated than insuring a traditional property, working with an insurance broker is critical to finding the right coverage. As auto, home, and business insurance experts, BrokerLink can help you find the coverage you need at a competitive price.

As tiny home insurance policies vary based on the unique circumstances of your home, there is no one policy for all tiny houses. However, we provide two examples of what your tiny home insurance policy may look like below.

RV insurance for tiny houses

If your tiny home is on wheels and you plan to move it frequently throughout the year, RV insurance might be the right choice. Since RV insurance is designed with travellers in mind, it provides coverage typical of auto insurance policies.

Basic RV insurance coverage often includes the following coverage types: collision coverage, comprehensive coverage, third party liability coverage, uninsured automobile coverage, accident benefits coverage, and direct compensation coverage. With this coverage your tiny home will be protected from a wide range of risks, including collisions causing property damage or bodily injury, theft, hit-and-runs, uninsured or underinsured drivers, medical expenses, lawsuits, and damage caused by fires, flood, falling objects, vandalism, and more.

Mobile home insurance for tiny houses

Alternatively, if your tiny home is stationary or you plan to move it only once or twice each year, mobile home insurance might be a better fit. Unlike RV insurance, which is more similar to car insurance, mobile home insurance shares similarities with homeowners insurance.

For example, it typically protects your home, your personal property, and third party liability claims. However, it will not protect your home or its belongings when in transit. For this, you would need to add a transit endorsement to your policy.

Ultimately, how your home was constructed and whether it’s mobile or not will determine the type of insurance coverage available to you. For example, depending on these factors, your tiny home may be insured at replacement cost or actual cash value.

Understanding how the value of your home is calculated is crucial, especially if you have a mortgage.

Generally speaking, no matter what tiny home insurance policy you are eligible for, it should protect you from liability, as well as protect the contents of your tiny home and any other structures on the property. This means your policy would protect you from a lawsuit if someone injured themselves on your property.

It also means that your personal belongings, such as furniture, clothing, decor, appliances, and electronics, would be protected, as well as any detached structures, such as sheds and garages. To learn more about tiny home insurance in Canada, contact BrokerLink today.

Am I required to purchase tiny home insurance?

Tiny home insurance is not required in Canada. However, if you take out a mortgage to purchase your tiny home, the mortgage lender may require you to purchase insurance as a stipulation of your loan. Further, if your tiny home is on wheels and you intend to transport it around the country, specialty auto insurance coverage may be required.

Even in cases where tiny home insurance isn’t required, it is highly recommended if you wish to protect yourself from financial risk.

The cost of tiny home insurance in Canada

The cost of tiny home insurance varies in price. As mentioned, there is no one type of insurance that applies to all tiny homes. Therefore, the costs can vary widely. Furthermore, insurance companies will consider factors about the homeowners, such as their age and claims history when calculating your insurance premium.

Owners of tiny homes in Canada may find it helpful to understand which factors can affect their insurance rates. Below are some of the main factors insurance providers used to calculate the cost of tiny home insurance in Canada:

  • How your home was constructed (factory-built or custom-built)
  • The size of your tiny home
  • The value of your tiny home
  • The value of your personal belongings stored in the tiny home
  • How you plan to use the home (e.g. whether it will be parked in a community or on the street)
  • Your claims history
  • Your credit score
  • The coverage you want to include with your policy

Can I rent my tiny house?

Yes, owners of tiny homes are free to rent out their properties, just as you would be if you owned a traditional home. Should you decide to use your tiny home as a rental property, you will need customized insurance coverage designed to protect your short-term rental.

Alternatively, if you intend to rent your tiny home out long-term, you will need a tenant and lease agreement in place. Before listing your tiny home for rent, speak with a reputable insurance broker from BrokerLink about the additional coverage you will need to insure your rental property.

Contact BrokerLink to learn more about tiny home insurance in Canada

If you are ready to embrace tiny home living, then be sure to purchase the necessary insurance to go with it. Between the lower cost of living, minimal environmental impact, and freedom to move anywhere you choose, there are plenty of benefits to purchasing a tiny home in Canada.

To ensure your home is protected at all times, contact BrokerLink for help purchasing a quality insurance policy.

Whether you have questions about tiny home insurance coverage or want to know how much it will cost, BrokerLink has answers! Our knowledgeable and friendly insurance advisors will use their expertise to find the best policy for you and your tiny home.

When you get in touch with BrokerLink, you will be assigned a dedicated insurance advisor who will take the time to learn your unique needs and the circumstances of your property. From there, we will obtain tiny home insurance quotes on your behalf and explain the coverage options available to you.

To learn more about tiny home insurance or obtain a free quote, get in touch with BrokerLink today. You can give us a call, send us an email, or visit us in person at one of our many locations in Canada.

You can also use our online quote tool to request a free quote right now. Please note that all BrokerLink tiny home insurance quotes are accurate, competitive, and obligation-free.