How To Insure A Shipping Container Home In 2023?

Can shipping container homes be insured?

As the demand for modular homes grows, shipping container home insurance options are now more widely accessible. But, it is not recommended to think of the shipping container as a ‘standard home that has standard insurance. To insurance companies, it’s not.

It is important to ensure that your builder is insured with Builders Risk insurance. Yes, S.I. Container Builds does. It covers off-site construction as well as transport.

Can shipping container homes be insured? Yes, you should are covered every step of the way to avoid any coverage gaps. If your builder does not cover the transit of your modular home, you can find an insurance company that specializes in this service like

In this article, we’ll discuss how To insure a shipping container home and we will help you find and choose the appropriate container home insurance policy for your specific situation.

Also, we will discuss the reasons you may require homeowner’s insurance on container homes as well as help you become acquainted with the insurance of the container houses industry.

Although our focus is mostly on homes with containers within the United States, the majority of what we discuss is relevant no matter the country you reside in.

The home insurance market is a complex one and has a lot of moving parts. While we won’t be able to make you an expert in insurance in a single article but we’ll try our best to summarize the most important and pertinent information that you must know to make informed financial choices.

Let’s get started!

The Importance of Insurance for Container Homes

It is important to know whether and when you require an insurance policy to protect the shipping container home, instead of simply assuming that you will. Insurance is among the items that are not a universally applicable requirement.

It is important to remember that insurance is an economic tool that is used to pool risk from several individuals and then transfer that risk onto an organization.

Insurance companies earn a profit by collecting higher insurance premiums than they are able to pay out in claims. But, to remain profitable, they need the company to have a thorough understanding of their potential risks.

In terms of when you’ll need to get home insurance, There are two primary situations to take into consideration. It could be a requirement from your mortgage provider, or it’s a sensible choice for your financial well-being.

Home Insurance for Bank Risk

When you borrow money to purchase a container home The lender may require that you have insurance for the house. However, this isn’t necessarily applicable, since some kinds of loans won’t consider your home’s container as collateral for the loan.

For loans backed by a container house, the lending company or bank will ask that you have insurance coverage. It’s not to safeguard you, but it could be a second benefit based on the policy you have.

The reason for a container home policy in this case of this is to safeguard the lender. If anything occurs to your container home after you’ve completed the repayment of your loan, the lender must have the means to recover the funds provided to you in order to purchase the property.

Home Insurance for Personal Financial Risk

If you are financing the acquisition of your container house or not, you must be aware of the risks personal to you that are associated with homeownership.

There’s always the chance (but costly!) chance that your house is damaged by a natural catastrophe or an act of terrorism or any other unforeseeable circumstances.

A homeowner’s insurance policy that is well-designed will protect homeowners from extreme financial burdens that could result from these unlikely events. In the next sections of this article, we’ll look at more examples of these risks as well as the kinds of insurance policies that guard against them.

Now, consider what you can do to determine if you’ve got the money to self-insure. Self-insuring means that you’ll be able to pay for these home-related damages or other liabilities from your own pocket. Keep in mind that for many families homes are the largest asset they own.

Self-insuring your own personal assets is not a risk most homeowners would like to take. It is generally accepted that self-insurance should be utilized for risks that are moderately frequent but with a low degree of severity.

However, risks with low frequency and extreme severity should be addressed by insurance. Therefore, some form of container house insurance is necessary for the majority of homeowners.

Who insures shipping container homes?

Who insures shipping container homes and how to insure a shipping container home?

Can shipping container homes be insured? Here are a few pieces of insurance information you’ll need to consider before you decide on a service:

Certain insurers such as Foremost and Foremost, will only cover your tiny house only if it has been certified through the National Organization of Alternative Housing (NOAH) or ICC NTA Modular Certification and is stationary. (SICBS is certified by NTA-ICC.The NTA-ICC

* Strategic Insurance has policies for tiny homes that provide home insurance that can go up to $250,000. Personal property protection of up to $25,000 and contents theft protection of up to $3000, insurance liability insurance as well as more.

RV insurance is a great option if your tiny home is on wheels and you intend to frequently move around because it will protect your home even when it’s being parked as well as while you’re on the move.

When you’re looking for tiny house insurance, you must look up your information such as your state, Zoning Laws, Tiny Home Details [mobile or stationery size, size, etc budget, separate structures, working full-time or part-time, Time, are you planning on renting out your tiny house?

And then look over policies to determine the one that is most suitable for your requirements.


Here are a few insurance firms that will cover tiny houses which you can use to begin your look:


Your credit score is a factor in the amount that your insurance policy will cost. Be sure that your credit rating of yours is as good as you can before talking to any insurance company. Based on your credit score the cost could be from $500.00.


Make sure to conduct your homework and research to find out what other people think about the insurance companies you can choose from.

Major Challenges of Container Home Insurance

Container homes are renowned for their inability to be insured but that’s not totally true.

However, understanding why this has historically been the case, and how it’s changing is crucial when you’re considering buying insurance for your home.

The Background of Container House Insurance

Container homes are distinctive and aren’t seen in many communities, so insurance for them is a more complicated process than regular. Some insurance concerns that pertain to container homes are:

  • Comparables: The basis for valuing your home is to look at comparable sale prices. Comparables analysis is basically finding the resale value of your container home by looking at the value of neighboring similar houses. The value of something is determined by what another person will be willing to pay. However, with container homes making only a tiny portion of the total home market close to comparables, they are typically difficult to find. As we say, container homes are distinct and are not suitable for all. Therefore, the market for potential buyers of containers is probably smaller than those who purchase a traditional house.
  • Building Quality: Insurers need to have confidence in their ability to judge the value of a property they insure. With a lot of inexperienced container home builders out there, along with the other complexities of building homes by yourself insurance companies may view containers as a chance to gamble when it comes to the building’s quality. The main concerns concern the quality of workmanship, structural integrity, and the quality of the materials. While it’s true that containers are safer than traditional construction those who aren’t familiar with the construction of containers may not be as confident about their durability and strength.
  • Regulations: A complicated web of Zoning and building codes and insurance requirements that vary according to state and country. This implies that a policy that is effective in one area may not be applicable in another, even though the houses are in fact identical.

In light of the problems in the past, it’s easy to understand that certain home insurance companies in the past weren’t interested in insuring shipping container homes. They did a lot of businesses with traditional homes that are relatively simple and easy to cover.

The Evolving Container Home Insurance Market

Despite the many changes we’ve witnessed over the past few times, fires are still burning and thieves are still around, and pipes continue to break.

The majority of external risks aren’t going away which means we’ll continue to require our insurance companies. What’s been changing as time passes are the challenges with container homes we discussed in the previous section.

Due to the continuing growth in the popularity of shipping container construction, there are more similar homes available than at any time in history. Insurance professionals in the sector are becoming more familiar with container houses thanks to the extensive coverage in the media.

The standard of homes built in containers is increasing as builders of container homes gain expertise and the best container construction practices are shared with the entire industry.

In addition, the fact that the regulations related to construction in containers are slowly getting more in line, and being able to comply with the International Residential Code actively working to streamline the process to full code compliance.

These changes are in line with the rising acceptance of other forms of alternative construction such as dome homes, log homes straw bale houses, and dome homes.

Companies are beginning to accept insurance coverage for homes built with these as well as other kinds of distinctive homes. The acceptance of similar types of innovative construction methods assists in finding companies willing to cover containers as well.

How To Insure A Shipping Container Home?

Who insures shipping container homes? If you’re looking to know more about the insurance market for homes and its players, it is essential to comprehend the people in the.

There are many businesses, organizations, and individuals that are involved in establishing and executing insurance policies. Alongside yourself, who is the insured We can put the other players in insurance into three general categories.

Insurance Providers

An insurance company, also referred to as an insurance company an insurance company or just an insurer is a company that keeps reserves to fund the insurance contract you purchase to be covered under. Some of the biggest insurance companies you’ve encountered comprise Berkshire Hathaway, Allianz along with MetLife.

Home insurance is typically an offer by an insurance company that covers property and casualty or P&C. If you’re wondering about the term “casualty” is essentially an alternative term to describe liability.

A P&C insurance firm typically provides items such as home insurance, auto insurance, theft insurance along with liability insurance.

It is important to note that P&C insurance companies do not offer services like life insurance or health insurance. There is also”specialty insurance”, also known as specialty insurer which means companies who focus on insurance for more uncommon risks and assets.

To cover the home the insurers require a methodical objective way of evaluating the risk of assets and calculating charges. This process is known as underwriting. It’s performed by underwriters and employees of the company.

Underwriters utilize sophisticated software that integrates the mathematical principles in statistics as well as an actuarial study along with billions of information points about previous claims history and indicators that might indicate future claims.

They obtain data from their internal databases, as well as third-party databases such as Verisk Location, the LexisNexis Comprehensive Loss Underwriting Exchange ( CLUE), and Verisk Location as well as other sources of data like weather and demographic data.

They use their huge data deposits and their proprietary methods of data analysis to analyze and assess the probability of an event that could result in the payment of a claim, so they are able to decide:

  • The question is whether an insurance policy should be made available to a prospective customer in any way
  • What premium for insurance should I be charged?
  • What coverage for insurance should I offer, and under what conditions?

In order to effectively communicate these policy decision-making to customers in the real world insurers and their underwriting departments have to communicate with potential customers. That brings us to producers.

Insurance Producers

The next category to be discussed within the insurance industry includes the insurers. Producers can be identified by a range of titles and names, including insurance brokers, insurance agents, or insurance intermediaries.

In a nutshell, insurance producers are individuals who connect clients seeking insurance to insurance companies.

Producers can also help customers in filing claims on their insurance policy, should it be required. Because they are in a better relationship with the client they can conduct an initial screening known as field underwriting prior to the policy being handed over to the underwriters of the insurance company.

Although all insurance companies are essentially middlemen to a certain extent, their interactions with their customers and insurers are different in a number of fundamental ways. There are four general categories that most insurance providers belong to:

  • insurance brokers: Insurance broker aid customers locate the ideal coverage by looking at the coverage options from a variety of insurance providers. Contrary to the other three choices, brokers work for the customers and get paid by the clients, you, and not the insurance companies.
  • Insurance Carriers Independent Agents Independent agents are also able to permit customers to compare policies with a range of insurance companies, however, these are contractors who’re independent that are not paid by insurance companies.
  • Exclusive Agents for Insurance Companies Exclusive agents, also known as captive agents. They are independent contractors who are paid by insurers and only collaborate with one insurance company.
  • Insurance Provider Direct writers: Direct writers are in fact employees and not independent contractors of insurance companies, and they draft policies exclusively for their particular company.

If you are building something unique and complex such as the construction of a shipping container home, an insurance broker or independent agent is the most common choice. They can assist you in comparing policies offered by a variety of insurance companies and determine which ones are more open to non-standard construction-specific circumstances.

Exclusive agents and direct writers generally only provide insurance policies with a single insurance company. In addition, with the limited policies from an insurer, it’s typically harder to locate one that will meet the requirements of homes with unique needs.

No matter what nature of the providers and producers that you deal with, all belong to a strictly controlled and monitored sector that is strictly controlled.

Below, we will discuss a few organizations that are government-run as well as non-governmental organizations that aid in regulating the professional insurance market.

Insurance Regulatory Agencies and Industry Organizations

In addition, there are numerous regulatory bodies and organizations that regulate the insurance sector. Within America, these organizations and regulatory entities are in the United States, these groups provide the basis for the trust that we have that insurance companies will be financially sound, offer the protection they assure, and settle reasonable claims when required. Some of the organizations worth mentioning:

  • State Insurance Boards: Each US state has its own insurance board, which sets guidelines for licensing and training for producers, sets the requirements that insurers must meet to provide policies within the state, and much more. In total, state insurance commissioners from every state are supervised and supported by the National Association of Insurance Commissioners (NAIC). The NAIC also offers its Consumer Insurance Search tool, which allows consumers to find information about insurers, including financial metrics and complaints.
  • Financial Rating Company: A small number of firms provide ratings of financial strength for insurance companies, assisting customers determine whether the firm is strong enough financially to be able to pay the damages needed, without becoming insolvent. They are registered with the US Securities and Exchange Commission recognizes these rating firms with the designation of national Recognized Statistical Rating Organizations (NRSROs) and those who are associated with insurance ratings include A.M. Best, Demotech, S&P Global, Fitch, and Moodys. Weiss Research also provides extremely useful financial strength letters-grade ratings for additional insurance companies. Individual consumers should worthwhile to look up potential insurance companies’ ratings on a variety of different platforms!
  • Insurance Service Office (ISO) is part of Verisk’s insurance data services firm. Verisk the ISO’s largest open activity is the creation of form templates that insurance companies are able to copy or at the very least make use of as an inspiration for their own insurance form. ISO forms are ISO templates that serve as a base of understanding and provide a common term for customers and insurers. Because of the many decades of precedents in the case law ruled by the courts, the use of ISO forms allows insurers to have a greater understanding of areas of gray that may have litigation potential.
  • American Association of Insurance Services (AAIS) Similar to the ISO AAIS is somewhat similar to the ISO, and the AAIS offers guidelines to insurers. It is distinct in that it is a non-profit advisory body.

Overview: Home Insurance Protection

Insurance companies focus on the finer details. If you and your agents do not understand and communicate the particulars of your insurance policy, it’s possible to miss something.

One of the most difficult scenarios you could be in is believing that you are protected by insurance in the event of an unfortunate circumstance and then realizing that you’re mistaken regarding the protection you have. What exactly are these “unfortunate events”? Insurance companies refer to them as perils.

In simple terms, perils are the things and incidents that you’re protecting yourself against. You hope that they are unlikely to occur however, you want to be prepared in case they do happen. It’s not enough to be merely exposed to danger.

To be able to “use” your insurance (in the sense of making an insurance claim) it is necessary to have suffered losses.

Perils and losses are connected in insurance. For example, a loss has to be caused by an incident covered by your insurance policy. Once you have that knowledge it is now time to explore a bit more deeply the specific perils as well as security your insurance policy provides.

A typical homeowner’s insurance policy provides the protection of your home as well as liability coverage that you might have to pay.

Property Protection

Human nature tends to see insurance as a property. It doesn’t matter if you’re talking about real property (ex buildings and land) and personal possessions (ex clothing and furniture) property insurance and the dangers it guards against are easy to grasp because they’re tangible.

First-party coverage for the property is known as coverage due to the fact that it is your home that is covered. If, for instance, your roof has been damaged and the insurance company is unable to repair it, they will cover the repair of the roof or replace it.

Many of the property hazards are linked to natural disasters such as flash floods or frozen. Other perils are connected to human actions, like theft or vandalism. There are two main ways insurance policies deal with property risk:

Property: Open Perils

These policies are also referred to as all-risk insurance policies. They are the more ‘better option of the two and are the reason they are often required by lenders in the event that you have home insurance that is required by the mortgage.

While an open peril insurance policy provides the greatest coverage, it’s not able to provide coverage for every possibility of peril, and certain things you believe would be excluded are not. In general, we consider open peril policies as covering all risks, excluding those explicitly excluded by the policy.

Some examples of potential dangers that are not covered in a policy of open risk are:

  1. Laws or ordinances change
  2. Earth movements are caused by flooding as well as sinkholes, mudslides, and floods.
  3. The backup of drains or sewers
  4. Power malfunction
  5. Neglect
  6. War
  7. Nuclear hazard
  8. Intentional loss
  9. Government intervention
  10. Theft of a home that is under construction
  11. Vandalism on a vacant property
  12. The term “fungus,” mold or the term “rot”
  13. Wear and tear
  14. Mechanical breakdown
  15. Smog or corrosion, rust, or smog
  16. Smoke from agricultural or industrial processes
  17. Discharge, dispersal, or the seepage of pollutants
  18. Bulging, shrinking, setting, or expanding of a structure, like foundations
  19. Rodents, vermin, birds insects
  20. Animals you own

However, there could be vast differences in exclusions between policies, so be sure to check the specific language used in the policies! Be aware that all perils are covered all-inclusive, not just the items specified.

Property: Named Perils

They are also called closed peril policies, specified-peril policies, and named-risk insurance policies. A named-peril insurance policy is exactly what it sounds like. only the risks specifically mentioned by the insurance policy will be covered, and the rest of the risks are not.

The majority of states have standardized to include one or more of the below-named perils that are which are listed in the ‘Perils Insurance against the section of your insurance policy:

  1. Lightning or fire
  2. Hail or windstorms
  3. Explosion
  4. Civil disturbances or riots
  5. Damage caused by an aircraft
  6. The damage caused by cars
  7. Smoke
  8. Vandalism
  9. Theft
  10. Volcanic eruption
  11. A falling object
  12. Weight of snow, ice, or sleet
  13. The accidental discharge or overflow of steam from an HVAC, plumbing, or fire sprinklers system or from a home appliance
  14. Accidental and sudden breaking cracking, burning, or expanding of a hot or steam heat source, air conditioning, or an automatic fire-protection system
  15. An HVAC, plumbing, or automatic fire-protection sprinkler system or a household appliance
  16. Unintentional and unexpected damage resulting from the electrical current that is artificially created

Make sure you know that coverage for named perils is “nothing other than the items listed’. It is important to know the distinction between named and open policies.

Uncertainty about the way your insurance policy handles hazards can cost you thousands of dollars if there is denied a claim you thought was covered. This image can assist you in determining the difference visually:

Property Coverage

The risks mentioned above clearly can cause damage to or destroy various physical assets. Therefore, it’s crucial to understand the types of property that are covered under the insurance you have purchased. Insurance coverage for homes is usually divided into four categories:

  1. Dwelling coverage: Guards the foundation of your home, its walls, roof, and windows. This covers everything that could not escape from your home even if it was turned upside-down.
  2. Other Structures Insurance: Provides protection for the structure that is not on your property, such as garages that are detached, swimming pool fences, sheds, and so on. In many instances this is the case, you would find an Accessory Dwelling Unit (ADU) or similar backyard structures would be included in a homeowner’s insurance policy. Additionally, a small shipping container home behind your home could be covered according to the policy’s author size, usage, and size.
  3. Personal Property Insurance: Covers personal property that is damaged, lost, or damaged within your home. The protection is available to your furniture, clothes appliances, furniture, and other items.
  4. Loss of Use Protection helps to cover the cost of living like food, housing, and essentials if forced to relocate because of an incident that affects your home due to the covered risk. In some cases, this insurance is referred to as Additional Living Costs (ALE) Insurance.

Liability Protection

Liability insurance covers you if you’re found to be legally responsible for another’s loss. Liability coverage is referred to as third-party insurance because it’s another person, an outside party, who is able to cover your losses on behalf of you.

That is that if you’re actions (including the act of negligence) have a negative impact on another person the liability insurance policy is designed to safeguard you.

Liability Perils

In the case of risk of liability, we’re usually talking about incidents that could make you owe another person money. Examples of liability risks are your dog biting someone else, an acquaintance slipping onto your floor, etc.

In contrast to property insurance and liability insurance, liability insurance is almost always a risk that is open, with named exclusions and exemptions and not named perils.

Liability Coverage

Although the list of possible risk-related perils is virtually endless however the protection for liabilities isn’t. Here are two ways the vast majority of homeowners insurance policies protect liabilities:

  1. Personal Liability Coverage: Insures you in the event that someone sues you because you caused injuries or property damage to them. It covers court costs up to a certain amount and also covers you in the event that you are legally responsible for another’s loss.
  2. Medical Payments Coverage: Offers payments for visitors’ medical bills if they’re injured at your home, as well as for injuries that happen to other people outside your home in certain situations.

The importance of quantifying your Insurance Protection

Your insurance policy contains specific commitments not just regarding what’s covered, but also how much your company will pay in the case of an incident (and the amount you’ll have to pay for the costs). This is over and over the regular insurance premiums, you have to pay regardless of your claim status.

The details of your insurance policy can be usually located on the first page of your policy’s documentation which is known as”the declarations’ page. You’ll find details regarding your policy’s coverage, deductibles and the limit on dollars, etc.

Insurance Deductibles

The deductible refers to the sum you have to pay in order to submit claims. It is thought of as a type of cost-sharing with your insurance company.

If you file a claim for $2,000 with a deductible of $500 the insurance company will pay $1500 while you be paid $500. Be aware that you may have various deductibles in different kinds of coverage under one policy.

Insurance Policy Limits

Every insurance policy has dollar limits that represent the maximum amount the insurance company will cover on a single claim. The limits are usually specific to the particular type of insurance.

The idea is to ensure that you have enough insurance coverage to repair your property in the event the property is destroyed completely. If the coverage you have is not sufficient then you must cover the difference between the total amount and the amount of coverage.

Insurance Coverage Loss Settlement Methods

If you are able to submit a claim to the insurance policy there are options that the insurance company can compensate you to cover your loss.

Understanding the differences is essential to receiving the money you’re hoping for! We will cover the most commonly used choices below, arranged in order of increasing protection.

  • Actual Cash Value coverage: It covers repair and replacement costs, minus depreciation deduction. Depreciation can decrease value because of wear and age as time passes. For instance, a 10-year-old roof could have a cash value of $7,000 when the cost of replacement could be as high as $10,000. If you have this insurance and you have a deductible of $1,000 the company will be able to pay $6,000 towards the cost of the replacement of the roof. The company would be required to pay the $1,000 deductible plus the difference of $3,000 between real and replacement costs.
  • Repair Cost Protection: Allows you to pay for replacements or repairs at the current cost. For instance, if you require to replace your roof and it is priced at $10,000 then the policy will pay you $9,000, as long as you meet the $1,000 deductible.
  • Guaranteed Replacement Cost Coverage The policy will allow you to rebuild your home in the same condition it was prior to the catastrophe, regardless of whether it is over the limit of coverage. This is useful when there is a sudden increase in the cost of construction for instance, if the neighborhood is impacted by a natural catastrophe, or there’s an issue with construction materials. If a roof cost $10,000 in the past, but due to external causes, it’s $15,000 (even when $15,000 is more than the normal limit for your policy) The firm will be paid $14,000 and you’ll have to pay the $1,000 deductible.

Types Of Container Homes Insurance Policy

With the wide range of perils and insurance options, we’ve covered so far, it comes with no surprise there exist many kinds of container insurance policies.

Different types of insurance policies combine the different elements of coverage into one form or document. The ideal insurance plan to suit your needs is based on your financial situation, home details, risk exposure, and other aspects.

Within the confined space of shipping container home insurance, there are many particular kinds of insurance policies offered. Certain kinds are more defined than others, which can be a little unclear and sometimes overlap.

Be aware that at the end of this article, we’ll talk about how to choose the best homeowner insurance for your container that is suitable for you. In this article, you should concentrate on building your knowledge of the different types of insurance policies likely to be available for homes built in containers.

Standard Home Insurance

A standard homeowners insurance plan includes both property and casualty (liability) protections within the same policy. It covers a variety of risks that come with renting or owning a home as well as protection against accidental and liability.

At present, there are eight ISO forms that are used for homeowner’s insurance. They are identified as HO-1 through HO-8. But only four of them are covered within this initial section of the standard homeowner’s insurance.

Four of these insurance kinds would be suitable for a container home that falls into one of the two classifications:

  • A container home of smaller than 1000SF, adjacent to a traditional home (for instance an ADU the granny flat or she shed, etc. made of shipping containers) shipping container), and other structures that are eligible for ‘Other Constructions insurance
  • A container home, which is over 1000SF and is located on a property owned by the owner is constructed according in accordance with IRC codes and is considered to be the primary residence of the owner.

HO-1 Policy: Basic Form

An HO-1 insurance plan is generally regarded as the simplest homeowner’s insurance policy with the lowest coverage. In most cases, it will cover the first 10 of the 16 perils named. Ho-1 policies usually only offer the actual cash value of coverage and only cover real estate but not personal assets or liabilities. The type of policy isn’t readily available because of its smaller coverage level.

HO-2 Policy: Broad Form

When you sign up for the HO-2 policy of insurance it will provide coverage for all sixteen named risks, and not only the first 10 perils as you would when you purchase an HO-1. Additionally, an HO-2 policy could include protection for personal property as well as personal liability in a few instances. In addition, you’ll typically get insurance for replacement value in the majority of instances.

HO-3: Special Form

An insurance policy titled HO-3 is by far the most popular kind of homeowners insurance that is available across the United States.

The main difference between HO-3 and HO-2 is that it moves into open peril insurance for your property however, your personal property could be covered under name peril insurance.

While personal home and liability aren’t always included in HO-2, they’re generally included in the HO-3.

HO-5: Comprehensive Form

The type of coverage that is typically considered to be the best for a typical home is the HO-5 insurance plan.

It provides open peril insurance for personal and real property, as well as liability insurance. It generally also has greater coverage limits than HO-3.

Dwelling Fire Insurance

Although it does have the word “fire” in its name the term “dwelling fire insurance” is somewhat of an oxymoron. In actuality, the insurance covers dwellings against more than fire-related damages.

The”fire” part of the name is to reflect historical motives. While the insurance for dwelling fires is often not officially referred to as ‘landlord insurance’ it can also be utilized to cover owner-occupied homes too particularly those that aren’t insured by standard homeowner’s insurance policies.

This makes it a great choice for larger container homes particularly those that are which are used as weekend retreats and rental properties, among others.

Fire protection for dwellings differs from the standard homeowner’s insurance in that it generally does not provide individual property insurance or liability protection.

In this article, we’ll look at the three major dwelling fire forms, and how they differ from the coverage of Homeowners’ forms using the same numbers:

DP-1 Policy (DF-1): Basic Dwelling Form

A Basic Form for Dwelling Fire is like an HO-1 form. It is only for the named perils and is typically a cash-value actual policy.

DP-2 Policy (DF-2): Broad Dwelling Form

The Home Fire Broad Form policy includes some additional known perils for a DP-1 like how an HO-2 can add additional names to an already existing one. A DP-2 can also be upgraded to the replacement cost reimbursement, instead of the actual cash value.

DP-3: Policy (DF-3): Special Dwelling Form

If you select the Home Fire Special Form policy, you’ll get the benefits of open peril insurance like an HO-3 form. Also, you can retain the reimbursement for replacement costs of the form DP-2.

Manufactured Home Insurance

Manufactured Home Insurance is more than just an umbrella term used to describe various types of insurance. Within this category we’re covering several different types of assets and the distinctions between them can be hazy. Examples include:

  • Mobile Home Insurance
  • Single-wide Home Insurance and Double-wide Home Insurance
  • Sectional Home Insurance
  • Modular Home Insurance
  • Tiny Home Insurance
  • Travel Trailer Insurance
  • Recreational Vehicle (RV) Insurance
  • Park Model Home Insurance
  • Container Home Insurance

The central idea is that all of these houses are not constructed on-site. They are constructed at a minimum in a factory and later transported to the area where they will be utilized (either as a whole or in fragments).

The process of getting manufactured home insurance can be an issue due to the fact that different insurance companies treat the process differently. Typically manufactured home insurance can be offered in five ways, dependent on the particulars of your home:

  • HO-7: Mobile Home Form
  • MH-1: Mobile Home Form
  • Mobile Home Endorsement that is added to an HO-2 or HO-3 etc. Formula
  • Dwelling Fire Form
  • Customized Insurance Provider Formula not affiliated with ISO or AAIS

The distinction lies in the way insurance and non-insurance companies deal with these houses.

For instance, the government mortgage company Fannie Mae specifies that”manufactured” homes have greater than 400 square feet and are constructed to a HUD code which is not an IRC code.

But insurance firms do not necessarily have identical criteria to determine the criteria for insured manufactured homes.

Certain insurance companies search for tiny homes that be inspected through NOAH as well as RVIA in accordance with their movement. However, other companies are more flexible.

Certain providers will also allow self-built tiny homes and others will only accept professional-built homes. It is important to note that within this article, we’re not covering insurance for RVs that are equipped with motors, like class A, B, or C motorhomes.

These are self-powered RVs and are covered by insurance that’s closer to an auto insurance policy than home insurance.

With the versatility of the container structure with respect to size and portability, attempting to utilize the different kinds that of insurance for manufactured homes that are available for container homes can lead you into a murky zone.

It is essential to be precise with your insurance company regarding the size of your container home, the way it was constructed, and if it is equipped with wheels.

With so many variations in the paperwork of insurance for manufactured homes it’s not surprising there’s also a lot of variation in the coverage.

However, generally speaking, there are a few things that are generally true regarding the insurance coverage of this kind of semi-portable, modular, or modular housing:

  • It typically covers certain perils
  • It usually covers only the house when it is stationary and it is not covered in transit

Some examples of firms that provide insured mobile or manufactured homes include Progressive, Geico as well as State Farm. There are other specialty companies that target the small market for home insurance such as One80 Intermediaries and Foremost.

A manufactured home insurance is to be appropriate if you:

  • A tiny house on wheels, built from the inside of a shipping container
  • Container homes that are smaller than 1000SF and are in isolation and are far from other structures located on the same site.

Inland Marine Insurance

Inland Marine insurance is arguably even more complicated than Dwelling Fire Insurance; the name does not convey a clear idea of the kind of insurance you will receive.

The reasons behind this name are not new however in the modern day, the inland marine insurance market is a kind of a panacea to provide insurance when other kinds of coverage aren’t enough. Inland Marine can be used to meet a wide range of circumstances and comes with an extensive list of forms that can be used.

A lot of these forms aren’t filed which means they’re not supervised by state insurance departments because of their international use and absence of regulation by the state. However, the majority of inland marine insurance will at a minimum include two of these forms:

  1. CM 00 01: Commercial Inland Marine Conditions
  2. IL 00 17: Common Policy Conditions

A simple application of inland marine insurance is for shipping containers that are used for storage.

However, we’ve seen empty shipping container homes using this kind of insurance too. With the right agent to represent you in this regard, an insurance plan for inland marine on your container house could be a possibility.

Insurance for marine vessels is a common thing with a wide range of companies providing it. Some of the most well-known examples include The Hartford, DSV, Travelers The Hartford, and the Hartford.

Other Insurance Coverage Less Relevant for Container Homes

In the earlier sections, we discussed the most commonly used kinds of home insurance that have an excellent chance of being suitable for many homeowners who live in containers.

In this article, we’ll briefly look at some other kinds of home insurance that generally aren’t applicable to home ownership in containers.

HO-4: Contents Broad Form

This kind of insurance is designed specifically for those who rent instead of owning a house. With the increasing number of container homes and other multifamily container developments, there’s an increasing but small amount of home rentals in containers available.

With HO-4 insurance, you’re secured by named perils insurance for personal possessions and, often, liability insurance too. The broad type of insurance for contents is since most landlord insurance protects the building itself, not the tenant’s possessions.

HO-6: Unit-owners Form

Take a look at the differences between a condo and an apartment. While they share walls and similar designs The apartment is leased by a business, while the condo is managed by an individual. However, the communal areas of a condo are owned by the Homeowner’s Association (HOA).

The insurance policy for HO-6 is intended specifically designed for owners of condominium units. Although the HOA has an insurance plan covering the building’s overall structure and common areas that unit owners share An HO-6 insurance policy provides named peril coverage for everything that is within the walls of the condominium unit.

It typically covers your personal property as well as your liability. In essence, it’s like an HO-3 policy but is designed for condominium or cooperative housing construction.

There aren’t any shipping container condominiums available for purchase, which means this kind of insurance won’t be applicable to the majority of homeowners who own containers.

HO-8: Modified Coverage Form

Moving on to more obscure forms of insurance we come across the HO-8 insurance. The modified form of insurance is designed to cover homes that don’t conform to the typical standards of coverage demanded by other homeowner’s insurance forms.

In actual usage, the HO-8 form is mostly used for older houses and also provides named peril insurance.

Older homes, especially those that have been built in the past are typically constructed with particular workmanship and use materials that can’t be inexpensively or easily repaired or substituted in the event of the loss.

In the event of a loss, an insurer could quickly fall into situations in which the cost to replace parts of the house is significantly higher than the actual cash value.

A home built in a container doesn’t correspond to the purpose here. Although a container’s construction is less popular than traditional homes, it’s usually more costly, and it doesn’t make use of expensive, difficult-to-find materials.

This is why it’s unlikely that insurance companies would choose to use an HO-8 type of form for a home constructed in a container.

Supplemental Coverage Options

Last but not least, the type of coverage we’ll examine isn’t actually separate coverage in any way. Instead, it’s a form of coverage that could be added to any of the previously discussed insurance options.

In the world of insurance, it is common to hear that you need to buy several different names such as supplemental coverage insurance endorsements, and riders.

Whatever the name the goal is to expand the standard coverage of the standard form to cover new regions. It’s essentially a means by which an insurance provider can tailor an insurance policy according to your exact requirements.

Are there any examples of additional coverage you can include in your home container policy?

  • In addition to traditional renters and the use of short-term rentals
  • Include coverage for dangers like high winds, flooding, hail, and earthquakes
  • Increase the limits of your protection, such as a higher personal accident protection limit
  • Include the coverage of normally excluded conditions, for example, construction materials that are not standard
  • Etc.

There’s no way to offer the complete list of possible endorsements. Instead, talk to your insurance company to determine how they can modify an existing policy to suit your specific needs through additional insurance. This could be a means to secure insurance coverage for your home with a container.

Container Home Insurance Best Practices

We’ve discussed a few of the options available in the field of home insurance, and how they relate to different types of shipping container homes you may have or might be thinking about. Below, we provide some useful tips for selecting the appropriate type of policy and insurance company.

How to communicate your situation

Similar to what we suggest in dealing with code of conduct authorities, it’s important to pick your words carefully when you speak about insurance for container homes policies.

Certain people are influenced by preconceived notions about what you mean by “container home” that may not be in line with what you actually are creating.

Instead, concentrate on using words that are precise and precise. For instance, words like steel construction”, “code-compliant,” etc. can help communicate the message without causing confusion for the listener.

Make sure you have backup documents available, including photos (finished and in construction) as well as other documents.

Evaluating Insurance Providers and Producers

It’s crucial that the group of suppliers and producers that you collaborate with are financially stable and have a great reputation for customer service.

Verify the provider’s credentials against scores previously shared by the scoring system like credit scores to make sure that they are well-equipped to last for decades.

Find the company’s name on consumer-rated sites such as Google Maps, Yelp, and so on. to find out how their customers are feeling about their services.

Ask the producers themselves for references/testimonials when possible, what their retention rate for customers is, and also get clarity on how your claims will be handled.

Understanding Home Insurance Cost Factors

The cost of your insurance is determined through a sophisticated algorithm that is based on many aspects.

It’s true that the fact your house is constructed with shipping containers is just one of the factors although it’s a crucial one, it’s important to know the other elements too.

Below are some of the major costs that you can control when you are planning the design phase of your container-home project:

  • Condition, age, and the size of your house
  • The usage you plan to make
  • The location of your house regarding dangers (both natural and man-made, similar to criminal activities)
  • Your home’s location in relation to police and fire protection local contractors, the availability of building materials, etc.
  • Other factors that are important to consider include pets, a trampoline/swimming pool, a security system, and so on.
  • Your claim background
  • The health of your finances (primarily your credit score)
  • Your preferred coverage limits and the number of deductibles.

And, in essence, everything your insurance company thinks will increase the chance of submitting an insurance claim (or increase the value of the claim) will raise the cost of insurance.


Can I insure my shipping container?

Yes container Damage Insurance, sometimes known as Premium Insurance, safeguards containers from loss total as well as any other types of damage to containers. Containers can be damaged in a variety of ways. This policy provides insurance for injuries that happen on one-way trips for up to 60 days after the day of pickup.

What are the drawbacks to shipping container homes?

Shipping container homes have a couple of notable negatives:
The process of obtaining building permits can be a challenge.
Shipping containers may not be environmentally friendly
Modern appliances aren’t always easy to use.
They may require reinforcement

What is the life expectancy of a container house?

The life span lifespan of a shipping container home varies depending upon the climate where it is situated. However, generally speaking, homes constructed from recycled shipping containers will last for about 15 years with any major maintenance, whereas those constructed using new containers will last around 25 years.

Do container homes hold their value?

These homes are custom-built to fit your needs and come with a resale price that can be 100% or more and make them a great investment. Even without selling them investors could earn some decent money leasing shipping container homes as vacation homes.

Can a container home last 50 years?

The time span of shipping containers used to construct homes is also longer due to the fact that the containers aren’t just located in a more hospitable environment, but they have also been constructed and treated as a part of the construction process. Container homes can last for over 50 years without any issues.

Final Thought: How To Insure A Shipping Container Home?

If you made it all the way, then congratulations. The article “How to insure a shipping container home”, though lengthy, is a thorough guide about the reason you may need insurance for your container home but also the best way to locate it.

Container homes are innovative and unique, which is their appeal. However, this also makes choosing the best home insurance policy difficult.

However, with the right resources and the right tools, you can overcome challenges. Our hope is that, after reading this article, you’ll be armed with the knowledge and confidence to locate the ideal insurance company and policy to safeguard one of the biggest assets you own, which is your home.

If you’ve had a positive or negative positive or negative experience when it comes to locating and purchasing insurance for containers We’d like to learn about the experience. Post a comment to help us continue to support the community of container homes!


Dibyajyoti Bordoloi (CS, MBA Finance & Accounting) is the founder of He is a Practising Company Secretary and a real estate and stock market investor. He is the owner of CS Bordoloi and Associates. He is a commerce graduate from Darrang College, Tezpur, Assam. Later on, he pursued his higher studies at the Institute of Company Secretaries of India (ICSI), and completed his MBA (Finance) degree from Guwahati University. With over 16 years of experience in finance and accounting, he teaches personal finance to non-technical common people like you how to do it the right way. He is a proud member of the Chamber of Real Estate and Builders Association (North-East India). He is also a successful Investor and Trader in Equities and Real Estate.