Tiny Houses: The American Dream Gone SmallFor many people, the American dream is a huge mansion on a cliff with butlers and nice cars. Others dont have dreams that lofty. In fact, some peoples dreams only involve 100 square feet. These people are the leaders of the tiny home movement, a movement designed for people who want to downsize their homes, lifestyles, and yearly budget. According to TinyHouseTalk.com, a tiny house is anywhere between 65 to 400 square feet. But, many people have found ways to build even smaller. Paul Elkins, an avid Burning Man goer who created a bicycle camper for the event, which is one of the tiniest homes in the world: People who live in tiny homes boast simpler lifestyles and more money in the bank every month. But like many life changes, these homes come with a price tag and many headaches.
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Buying A Tiny HomeThe affordability of buying a tiny house is definitely not in question. In fact, according to TheTinyLife.com, 68 percent of tiny home owners have no mortgage. Still, tiny homes are no small investment, so youll need to do your research before buying. If youre looking to move into a tiny home, you have a couple of options. You can:
- Build it yourself
- Hire a tiny home contractor
- Buy a used one
Insuring A Tiny HomeInsuring your tiny home is a completely different matter than buying or building it. An important consideration for insurers is who built the tiny home. While it is cheaper for you to build your tiny home yourself, it might cost you in the long run to insure it. Insurers are hesitant to cover tiny homes that are built by the owners because owners are not often certified contractors. Any home built by an uncertified contractor could be incorrectly built or not up to code. The other issue with insuring a tiny home is its mobility (or lack thereof). There are two different types of tiny homes: mobile or stagnant. Insurance for your tiny home depends on the type of home you have. Mobile tiny homes are typically insured as mobile homes or RVs. Stagnant ones can be insured as actual homes, so you will run into fewer problems with insurance companies. If you have a tiny house on wheels, it is important to get a formal certification showing that the trailer has been properly made. This certification is comparable to the certification numbers tagged on many RVs. This tag is proof that the RV is up to National Highway Safety Standards. Your tiny home certification should be similar to, or the same as, this certification. Another option that recently hit the tiny house market is to get tiny house insurance. Tiny house insurance can cover everything you need for your tiny home: from walls and windows to the items inside. This highly specialized insurance can be expensive, thougharound $500 a yearbut it could be worth it for what it covers. Because this insurance is so specialized, it is also rare. Currently, you can only insure a US tiny home through Darrell Grenz of Portland. He insures tiny houses through Lloyds of London in the following states:
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