Justification for Mandatory Insurance Premium

The Cargo and Installation Insurance Premium is a mandatory fee required for every delivery cycle. This fee is not simply an added cost; it is an essential investment in protecting your valuable asset—your home—from the moment it leaves its origin until it is fully set up on your property.

Here are the three primary reasons why this premium is required:

1. Protection During Transport

Moving a large, non-standard structure across state lines involves significant and unavoidable risks that are unique to large-scale freight. Your premium ensures that your home is covered against unforeseen catastrophic events during the journey, such as:

  • Accidents: Major collisions, vehicle rollovers, or highway incidents.
  • Theft or Fire: Loss of the entire unit due to criminal activity or fire while the unit is in the carrier’s custody.
  • Transit Damage: Non-negligent structural damage caused by unavoidable road hazards, such as major potholes or sudden braking.

Without this coverage, any loss during the several-hundred-mile journey would be borne entirely by the owner.

2. Protection During Complex Setup & Site Work

Unlike standard freight delivery, our services extend far beyond simply dropping off the unit. Our team handles specialized, high-risk work at your site, which requires specific coverage called an Installation Floater. Your fee contributes to covering:

  • Installation Error: Accidental damage to the unit caused by our heavy equipment (e.g., a crane, a leveling jack, or a skid steer) while maneuvering the home into position.
  • Utility Accidents: Damage caused by errors during the crucial hookup process for electric, septic, or water supplies. For example, damage caused by a brief electrical surge during hookup or accidental severance of an existing water line.
  • Site Damage: Damage to the home while our crew is actively preparing the foundation, installing tie-downs, or performing required earthwork.

3. Compliance and Regulatory Requirement

As a licensed national carrier, Tiny Home Haulers is legally required to carry a base level of liability coverage. However, that base coverage often only covers catastrophic damage to the public or the carrier’s equipment. The premium you pay ensures that the coverage limit is specifically extended to protect the full Total Estimated Cash Value (TECV) of your home against all covered perils. This is a non-negotiable step to meet both internal risk management standards and the expectations of lending institutions and state transport authorities.

In short, the insurance premium is the cost of transferring the high risk of large-scale logistics and construction setup from you to a professional underwriter, ensuring you have a clear path to repair or replacement if an accident occurs.

CERTIFICATE OF LIABILITY & CARGO INSURANCE

Policy Number: THH-2025-STD-MASTER

Issuing Carrier: Tiny Home Haulers Risk Management Division

Coverage Territory: Continental United States (All 50 States)

SECTION 1: DEFINITIONS

  • The Carrier: Tiny Home Haulers (THH) also known as Tiny Haulers
  • The Client: The owner or purchaser of the prefabricated unit.
  • The Unit: The specific Modular Home, Tiny Home on Wheels (THOW), or Recreational Vehicle (RV) listed on the Bill of Lading.
  • TECV (Total Estimated Cash Value): The declared replacement value of the Unit and its internal contents at the time of shipment.
  • Coverage Window: Begins the moment the Unit is hitched/loaded onto THH equipment and ends upon the Client’s signature on the “Certificate of Completion.”

SECTION 2: SCHEDULE OF COVERAGE

This policy provides “All-Risk” coverage, meaning the Unit is insured against all physical loss or damage unless specifically excluded in Section 4.

2.1 Phase I: Transit Coverage (Inland Marine)

Coverage applies while the Unit is in motion or temporarily stored during transit.

  • Scope: Protects against collision, jackknifing, overturning, bridge strikes, theft of the Unit, and fire.
  • Limit of Liability: Up to 100% of the declared TECV.

2.2 Phase II: Site Preparation & Installation Floater

Coverage extends to the specific site work performed by Tiny Home Haulers.

  • Scope: Protects against damage caused during:
    • Grading and excavation (e.g., machinery striking the home).
    • Foundation placement (e.g., cracking during lowering).
    • Utility connections (e.g., electrical surges during hookup, septic pipe rupture).
    • Tie-down installation.

SECTION 3: PREMIUMS & DEDUCTIBLES

3.1 Insurance Premium

The cost of this coverage is calculated as a fixed percentage of the TECV. This premium is non-refundable and is fully earned upon the commencement of transit.

  • Payment: The premium must be paid in full prior to the scheduling of the pick-up.

3.2 Client Deductible

In the event of a claim where Tiny Home Haulers is found liable for damage, the Client is responsible for a per-occurrence deductible.

  • Standard Deductible: $1,000 (or 1% of the TECV, whichever is greater).
  • Application: This amount will be deducted from the final claim payout or settlement.

SECTION 4: EXCLUSIONS (What is NOT Covered)

This policy does not cover loss or damage resulting from:

  1. Improper Packing of Contents: Damage to internal furniture, electronics, or decor that shifts during transit due to the Client’s failure to secure them (unless packing services were purchased from THH).
  2. Pre-Existing Conditions: Wear, tear, gradual deterioration, rust, mold, or structural defects existing prior to THH taking custody.
  3. Force Majeure (Catastrophic Events): Unforeseeable acts of nature including, but not limited to, earthquakes, floods, volcanic eruptions, or war.
  4. Access Issues: Damage resulting from the Client providing inaccurate site dimensions (e.g., trees or branches scratching the roof because the driveway was narrower than reported).

SECTION 5: CLAIMS PROCEDURE

To ensure a successful claim, the Client must adhere to the following protocol:

  1. Inspection upon Arrival: The Client must inspect the exterior and interior of the Unit before signing the delivery receipt.
  2. Notation of Loss: Any visible damage must be noted specifically on the Bill of Lading or Delivery Receipt.
  3. Proof of Loss: The Client must submit a formal “Notice of Claim” to THH within 5 business days of delivery, including:
    • High-resolution photographs of the damage.
    • Original purchase receipts for damaged items (if applicable).
    • Repair estimates from a licensed 3rd party contractor.