Insurance Coverage for Tiny Homes or Tiny Income Properties

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Just a few years ago, tiny homes were legally not allowed in many parts of BC due to strict and old zoning laws. However, this has been changing in the last couple of years and tiny homes have been growing in popularity substantially. Several municipalities around BC are now opening up to the idea of tiny home living in order to help provide housing to residents.

Tiny Home Living

If you’re not familiar with tiny homes, you can get a pretty good idea from the name. Tiny homes are usually very small (around or less than 500 sq. ft. in most cases), and can be built using a variety of different methods and material, but many tiny homes are made out of steel containers commonly used for shipping. Many of these homes are not motorized, but can still be mobile and moved somewhat easily. These homes are not just small, but economical too, allowing owners to build for cheaper and also typically spend less on utilities.

A Growing Trend in Vancouver and Around BC

There was recently a laneway home approval in Saanich (so homeowners can build a tiny home for rental purposes on their property). It’s something that is huge in Vancouver now too. As more and more British Columbians warm up to the idea of living in a tiny home or building one as a rental property to supplement their income, it’s important to get an idea of the different risks and insurance coverage needs for such an endeavour.

How Much Do Tiny Homes Cost?

The cost of a tiny home can vary quite widely, depending on the size of the home, location, and material. Some tiny home builders have been able to build their homes for around $25,000 to $50,000, but these would be on the lower more frugal end. Other tiny homes can cost as much as $100,000+ if look on the higher more expensive end.

Insurance Coverage Considerations

As much as saving money and freeing-up cash flow can be a big part of tiny home living, it may still be good to consider home insurance for the tiny property. If the homes are still valued well into the high-mid 5-figures and well into 6-figures, then that is still a high worth asset that the owner may want to protect. If any major damage is caused to the property, like a large fire for example, then the homeowner could be down many thousands of dollars. That is where the right home insurance policy, even for a tiny home, can be extremely helpful.

Protect Your Tiny Home From Major Damage

If you have the right coverage, if/when any major damage is caused to your tiny home property from something like a large fire, a water leak, strong winds and/or natural disasters, your property will be covered.  This coverage would help pay for any major repairs that may be needed, and even full replacement of the home maybe if required. This can be a life saver for the many families that are investing thousands into these tiny homes, and may even be relying on renting the space out for income.

Get a Quick & Free Quote for Your Tiny Home!

Please feel free to contact us here at HIP for more information on tiny homes in BC and the different types of home insurance coverage options for them. We’d be happy to help answer any questions you may have, and we can also provide you with a quick and free no-obligation quote for your property. Contact us today!

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