Outside the Box: An Alternative to Insuring Your Tiny Home
Possibly THE most asked question on Tiny house Facebook groups is… ‘what insurance company actually insures tiny homes?’.
The answer is a little tricky as it depends on the home, the insurance company and sometimes even on who answers the phone!
If your tiny house meets caravan specifications and is registered then you may be able to get caravan insurance. If your tiny house is oversize or overweight, you may be able to get mobile home insurance…
Numerous people on the forums have mentioned some success getting insured by the following companies:
• Benjamin & Benjamin
• NRMA
• Elders
• CIL
• Allianz
• Youi
However, the insurers regularly change their policies and also their prices. And, following a few years of intense natural disasters, Australian insurance premiums have gone through the roof!
So…. if you have difficulty finding insurance, your quote is prohibitively expensive or you don’t trust insurance companies to actually pay you in the event of a crisis, here is an alternative approach…
STEP 1: Insure your Home Contents. Make sure your insurance covers all of your belongings and electricals but also your window dressings, furnishings and cabinetry, as this is your furniture. Do your research to make sure you know what you’re covered for and what you aren’t.
STEP 2: Calculate the difference you’d have to pay out on a new build.
STEP 3: Calculate the repayments on a personal loan for that amount and start paying that into your own high interest bank account or term deposit each week.
STEP 4: If disaster strikes, claim the Contents Insurance, and take out a Personal Loan for the remainder. You’ll have your insurance savings to help PLUS you’ll be used to setting aside the additional loan money. If disaster doesn’t strike, you’ll have your insurance savings earning a lovely high interest.
STEP 5: Try to avoid or minimise disaster as much as possible…. that can be the subject of another email - how to protect your tiny home!
One of the most important times for your tiny house to be insured is when you move it. The good news is, usually delivery companies have their own insurance for the delivery period – but always check first. Be guided by the experience of your builders but always do your own due diligence as well.
We hope this helps….
