Your home and contents policy will not cover a tiny home on wheels. That surprises people, and it is usually discovered at the worst possible moment, which is after something has already happened.
The reason is the same one that stops the banks lending on them. A home and contents policy insures a permanent dwelling on a title. A tiny home on wheels is a moveable dwelling. It is not on the title, and it can be towed away, so it sits outside what that policy was written to cover.
The good news is that it is entirely insurable. You just have to ask the right question, and the right question is not “can you insure my house”.
What you are actually insuring
Most tiny homes on wheels in Australia are covered either as a caravan or trailer, or under a specialist policy written for tiny homes. Several Australian insurers write this cover, including CIL, Youi, QBE, NRMA and CGU. Which one suits you depends on what you are doing with the home, and premiums and limits vary enough that it is worth getting more than one quote.
The cover itself breaks into five separate things, and a policy that includes one does not automatically include the others.
1. In transit
Damage while the home is being towed. This is a real risk on a 9.5 metre home on a 4,500kg trailer travelling a few hundred kilometres, and it is the cover people most often assume is included when it is not. Ask specifically who carries the risk during delivery and whether it is us, the carrier, or you.
2. Parked and lived in
Fire, storm, impact, theft, malicious damage while the home is sitting on a block. This is the closest equivalent to a building policy and it is the core of what you need.
3. Contents
Your possessions inside it. Often a separate section, sometimes a separate policy, and commonly capped well below what people expect.
4. Public liability
If somebody is injured at your home. This matters more than people think, particularly if the home is on land you do not own, because the landowner’s policy will not automatically extend to you and your arrangement with them may make it your responsibility.
5. While it is being built
Between the deposit and the day it lands on your block, somebody carries the risk. Ask us, ask your insurer, and get the answer before you pay the first instalment rather than after.
What insurers will ask you
The questions are fairly consistent across providers, and the answers determine whether you are covered and at what price.
- Is it on wheels, with the drawbar attached? Insurers writing caravan-style cover generally want it to remain towable. Removing the wheels or the drawbar can change what you are insured for.
- Is it hard-wired into services? Permanently connecting power, water and waste can move the home out of a caravan policy and into a category the insurer may not write.
- Is it on private property? Where it is parked matters, and so does whether you own that land.
- Is it registered, and does the trailer have a VIN? A compliant, registered trailer with documentation is a far easier risk to price than an owner build with no paperwork.
- What are you using it for? Living in it full time, using it as a holiday place, renting it out, or listing it on a short stay platform are four different answers, and getting this wrong is the fastest way to have a claim declined.
The value question, and why it matters here
Some caravan policies carry a maximum insured value that sits below what a well built tiny home is worth. Our range runs from $93,000 for the 7.4m Spirit to $270,000 for the 9.5m Entertainer, all including GST and the trailer.
If a policy caps out below your build, you are underinsured from day one and you may not find out until you claim. Ask for the maximum sum insured in writing, and check whether the figure is agreed value or market value. Agreed value is what you and the insurer settle on up front. Market value is what they decide it was worth on the day, which on a depreciating asset is a different and usually smaller number.
What helps your case
Insurers are pricing uncertainty. Anything that removes uncertainty tends to help.
Our homes are built on trailers we make ourselves in Australia, fully galvanised, with electric brakes, a breakaway battery, four foot stabilisers and four 12mm tie down anchor points. There is a build specification and a documented history behind each one. That is a straightforward conversation with an underwriter. A one off owner build with no engineering, no compliance paperwork and an unknown trailer is not.
Keep the paperwork somewhere you can find it. The build specification, the trailer details and VIN, the delivery documentation and photographs of the finished home before you move in are exactly what gets asked for at claim time.
Common questions
Can I insure a tiny house on wheels in Australia?
Yes. It is generally covered as a caravan or trailer, or under a specialist tiny home policy. Several Australian insurers write this cover. What you cannot do is rely on a standard home and contents policy, because a tiny home on wheels is a moveable dwelling rather than a permanent one on the title.
Will my home and contents policy cover it if it is in my backyard?
Generally not. It is not part of the insured building. Some insurers will extend limited cover to it as a contents item or an outbuilding, but the sums are usually far below the value of the home. Ask the question directly and get the answer in writing rather than assuming.
Do I need to register it to insure it?
Not always, but a registered, compliant trailer with a VIN makes cover easier to get and cheaper to hold, and it is required if you intend to tow it on a public road.
Is it covered while it is being delivered?
Only if somebody has arranged that specifically. Transit is usually a separate consideration from the parked cover. Ask us who carries the risk during delivery for your particular arrangement before the home leaves.
What if I rent it out?
Declare it. Renting the home out, whether long term or through a short stay platform, changes the risk and therefore the policy. An undeclared commercial use is one of the more common reasons a claim gets refused.
Does insurance cover me if the council says I cannot live in it?
No. That is a planning matter, not an insurable one. Sort out the approval position for your block first. Our state pages cover where the rules sit in each state.
A note on advice
We build tiny homes. We are not insurance brokers or advisers and nothing here is a recommendation about a particular policy or provider. Insurer names are mentioned because people ask where to start, not because we have any arrangement with them. Product terms change, so read the product disclosure statement and talk to the insurer or a broker before you commit.
Ask us for the paperwork
Whichever insurer you go with, they will want to know exactly what they are covering. We can give you the build specification and the trailer details for your model so you are quoting on real information rather than a description. Call Peter on 0411 079 446 or email info@tinyhomesaustralia.com.au.