Tiny House Insurance

[James H.]

We just purchased a property with a tiny house.  The medium to long term goal is to destroy (or move it) and build.  But, in the meantime, we have leased it month to month.  It is around 400sqft.  Safe, clean, and functional.  But, it is probably 50 years old and dated.

We are getting quotes of about $1000/yr for hazard insurance.  That seems quite high.  So we have asked agents about landlord liability (only.)  Still about the same price.

The story we are told is that major carriers do not want to insure anything without a replacement cost of at least $75K.  That means we are stuck with secondary carriers.

I do not mind going without hazard insurance given the ultimate goal with the property.  But, lack of liability insurance is concerning.

Any suggestions for more reasonable coverage?

[James H.]

Unfortunately, I do not think that will work because the home is titled to our LLC.

The liability insurance that Jason mentioned sounds promising.  But, it apparently takes them a day or two to provide a quote.  

We just got another local quote for hazard insurance.  $1500 for the year.  That's 4-5% of the replacement cost.  Maybe I am in the wrong business. :-/

Originally posted by @Michael Norris:

Not a perfect solution but... Ask your agent if you can extend liability from your primary home to the rental location?  Rates vary by state but in Ohio it's about $25 to $40 per year additional cost on the homeowners policy. While you are at it see what it will cost to Max out the liability and med pay on your home policy and then extend that over. Then ask about adding an umbrella to the mix. That should be about $2 million in liability and will probably cost less than what you are getting quoted for on just that location and you'll be getting extra value with the extra protection you'll be getting on your personal home and autos. (Unless you have teenage drivers then it could get a little pricey)