One of the first questions we get from prospective tiny house owners is, of course - what about financing and insurance?
Because tiny houses do not have a regulated code yet, there are certainly some gray areas. Financing and insurance can be anything from difficult to impossible to get, as lenders and insurers are not eager to offer services on an asset which may have integral flaws from a lack of building knowledge or a consistent standard. Keep reading to learn the solutions - and how you may be able to overcome the insurance challenge if you already have a tiny home!
Third Party Certifications
This is where third-party certifications comes in. To fill the void of code and standards to which tiny homes are expected to be built, a couple of certifications have become available. The primary two are the RVIA and NOAH certifications. RVIA is helpful and most common, however, it is technically a certification for recreational vehicles, not tiny homes, and because of that reason isn’t truly intended for full time living, which is the case for many, if not most, tiny homes. That is why at Cornerstone Tiny Homes we have chosen to be NOAH certified builders. NOAH offers a code based off of both RV and residential housing code to come up with a result that best fits the needs of a true tiny home.
Below are listed a couple of lenders who have the best reputation for lending on tiny homes. With a certification to help insure the quality and design of the home, such as NOAH, success will be much more likely. If you already desire to purchase a home but it isn't certified, it could be more difficult. However, let us know in the comments if you have heard of any other solutions!
There are some insurers who offer DIY tiny home insurance but cost will likely be higher. They also offer insurance for certified homes.
Insurance resources
Financing resources
Insurance for towing
While it is a bit of a sidestep from the main topics, we want to briefly touch on towing insurance. While most tiny home buyers will want to have a professional shipping agency transport their home, there are some who will want to move more frequently or save the money and do it themselves.
Getting insurance on a load can be a long, tedious process. This is the only success story we have heard of a private party getting towing insurance. If you are determined to do it yourself, check out the previously mentioned article, but otherwise we recommend hiring an experienced professional such as One Call Logistics, who we will refer you to if you build with Cornerstone. They already have the appropriate insurance and experience to deliver your home safely and even economically. They will also take care of any necessary oversized load permits should your home be wider than 8.5’. A huge bonus!
What have you learned about insurance and financing for tiny homes? Tell us your story below if you have experience we can all learn from! Feel free to check back as we will update this article with additional resources as they come available. Also check out this article for the next step in your tiny house journey - finding parking for your tiny house!