The American Dream is changing. At least for the growing number of Americans paring down their households and going small. Tiny, in fact.
“Tiny houses” aren’t just the latest architectural trend, they’re part of a social movement toward living more simply. The idea is that without a lot of stuff, you don’t need a lot of space to store it and have more time and energy for your family, your work, your passion, your life in general. Super-small homes also appeal to those seeking more financial freedom (and perhaps no mortgage) and a way to reduce their carbon footprint.
As they gain popularity, more insurance companies are offering coverage, but it’s complicated! (More so than usual!)
Some tiny homes are on wheels, some are considered modular homes, and still others are built to last in one location, all of which factors into how owners can insure them. Other factors that affect insurability and premiums for tiny home policies include their value, square-footage, and location, whether fixed or mobile.
So while it’s fairly easy to get insurance for a 500 square-foot tiny home built by an RV manufacturer, it’s tougher to insure a 300 square-foot owner-built cottage. There are some companies now offering policies specifically for tiny houses. But we’ve got our eye on the latest. Check out this tiny house insurance provider’s blog for more specifics about how it works in differents states.
Still, a big problem with tiny houses is that most city and county governments don't authorize residences under a certain square footage, usually about 500 square-feet. Factor in development codes with plumbing/utility/building foundation requirements that many unconventional dwellings can't possibly meet and there’s the rub.
But things are changing, particularly as cities across the country (including Orlando) consider tiny houses a potential way to curb homelessness.
So while over the past 50 years the average size of the American home has doubled to about 2,300 square-feet, an increasing number of folks are bucking that trend and heading in reverse and aiming small.
Harrell Agency isn’t offering tiny homeowners insurance – yet – but we’re paying attention and will keep you in the tiny loop!