Tiny Homes & ADUs in Preble County, Ohio: Local Insurance Guide for New Paris and Beyond

Preble County isn’t covered with tiny houses yet, but it’s already part of the story. With Cedar Springs Tiny Village in New Paris and more Ohio cities loosening zoning around accessory dwelling units (ADUs), homeowners and investors are quietly adding backyard cottages, in-law suites, and garage apartments. The challenge is that insurance companies don’t treat those spaces like “just another room.” How your unit is built, where it sits, and whether you rent it out can completely change the policy you need. This guide walks through how tiny home and ADU insurance in Preble County works, what local risks to plan for, and how to avoid the coverage gaps we see most often.

Tiny Homes, ADUs, and Bonus Spaces in Preble County

Most people in Preble County still live in traditional homes—farmhouses outside Eaton, ranches near West Alexandria, or older homes around New Paris and Lewisburg. But the housing conversation is shifting. As prices climb and families try to keep generations closer together, small secondary units are starting to make a lot more sense.

In practice, these “tiny” or secondary spaces show up in a few ways:

• A finished apartment above a detached garage in New Paris or Eaton
• A basement suite with its own entrance and kitchenette
• A small backyard cottage or studio built as an ADU behind the main home
• A true tiny house on wheels parked on family land or within a community

From a building or zoning standpoint, your township or village may call these ADUs, second units, in-law suites, or simply treat them as part of a single-family home. From an insurance standpoint, though, the question is much sharper:

Is this space just extra living area for you—or is it its own dwelling with its own risks?

That one distinction drives whether your current homeowners policy can be adjusted or whether you need a separate dwelling, landlord, or RV-style policy for the unit.

Why Tiny Homes and ADUs Are Harder to Insure Than They Look

You might think, “It’s on my property, so my home policy covers it.” Sometimes that’s true—but not always. Insurers mainly care about three things:

1. How it’s built (on a foundation, on wheels, stick-built vs. manufactured)
2. How it’s used (family only, long-term rental, short-term rental)
3. How it’s classified locally (ADU, RV, manufactured home, second dwelling)

Those variables can lead to very different policy paths:

• Finished basement or bonus room used by family only may still fit under a standard homeowners policy—if your agent understands the upgrade and documents it.
• Full apartment over a garage used as a rental usually pushes you into a landlord/dwelling policy (often a DP-3), especially if it has a separate entrance and kitchen.
• Detached backyard cottage or ADU may need its own dwelling or manufactured home policy, depending on how it’s anchored and wired.
• Tiny house on wheels often falls under an RV-style policy, particularly if it moves or could move, even if you keep it parked most of the year.

The risk isn’t just picking the “wrong” label—it’s having a serious claim denied because the policy you bought doesn’t match how the space is really used. That’s why we always encourage Preble County clients to talk through their plans before framing, plumbing, or listing a space for rent.

Cedar Springs Tiny Village: What It Teaches Us About Local Coverage

Preble County happens to host one of Ohio’s best-known tiny home communities: Cedar Springs Tiny Village in New Paris. It’s been featured in national tiny house coverage, including a profile on TinyHouse.com that highlights it as a peaceful, lake-adjacent village with full hookups and sites for tiny homes on wheels. For many Ohio residents, that article is the first time they see “New Paris, Ohio” paired with the idea of full-time tiny home living.

We wrote a statewide guide, Tiny Home Insurance in Ohio: Big Protection for the Smallest Homes, to unpack how insurance works for tiny homes across the state. Cedar Springs is one of the communities we highlight there, and it illustrates a few truths that matter directly to Preble County residents:

• Most homes there are on wheels. That nudges coverage toward RV-style and specialty tiny home programs, not standard homeowners.
• Some residents live there full-time. Full-time living increases liability exposure and makes the structure more like a primary residence than a vacation RV.
• Some owners rent units out. Once rent is involved, you’re running a business, and standard personal-use policies may no longer apply.

Even if you never plan to move into Cedar Springs, the insurance logic still matters. A tiny home on wheels tucked behind a farmhouse outside New Paris will trigger many of the same questions from underwriters as one parked on a pad inside the village.

ADUs on Family Land: In-Law Suites, Garage Apartments, and Backyard Cottages

For many Preble County families, the more realistic project isn’t a tiny house on wheels—it’s a second living space on existing property. Parents add a small cottage so adult children can live close by. Kids finish a basement suite so aging parents can avoid stairs. Investors carve out a garage apartment to create a new income stream.

From an insurance standpoint, here’s how we typically see those situations play out:

1) In-Law Suite With No Rent Involved

If the new space is fully inside the main house (for example, a basement with a kitchenette and bedroom) and it’s only used by family, your existing homeowners policy may be able to stay in place with updated limits. The key is transparency—your agent needs to know about the extra kitchen, the potential for separate occupancy, and any building changes that affect square footage or risk (like new egress windows or exterior doors).

2) Garage Apartment or Detached Studio

Once the space has its own entrance and can function as a separate dwelling, many carriers treat it differently. If you rent it to a tenant, you’re usually in landlord policy territory, with coverage for:

• The structure itself (as a separate dwelling or “other structure”)
• Liability associated with a tenant or guest
• Optional loss of rents coverage if a claim takes the unit offline

The details matter: some insurers can extend the main policy to cover the unit; others want a separate dwelling policy. The only way to know is to walk through the setup with an independent agent who can shop multiple companies.

3) Backyard Cottage or Tiny Home on a Foundation

A small stick-built cottage or modular ADU placed on a permanent foundation behind your main home often rates more like a traditional dwelling. However, zoning, distance from the main home, and utility setup all influence whether it’s treated as an additional structure or a second residence. If you rent it out, expect landlord-style coverage again, possibly with higher liability limits and stricter underwriting.

Where ADUs Are Already Allowed in Ohio

A recent presentation to the Ohio Conference of Community Development notes that several cities have already updated their zoning codes to allow accessory dwelling units (ADUs), including Cincinnati, Dayton, Bowling Green, Yellow Springs, and Westerville. Each city handles ADUs a little differently—some permit them by-right in most residential districts, while others use conditional-use approvals or require the property owner to live on the lot.

Source: “Accessory Dwelling Units (ADUs),” Ryan Homsi, AICP, OCCD Summer 2024 Conference.

Rural Realities in Preble County: Local Risks That Shape Coverage

Whether your small unit is in New Paris, just outside Eaton, or on country roads between townships, Preble County’s location and climate introduce some risks that tiny home and ADU owners need to respect.

• Wind and hail. Western Ohio sees its share of severe thunderstorms, wind events, and hail. Small structures with lighter framing, metal roofs, or lots of glass can be more vulnerable than a full-size home. Make sure deductibles are realistic, and ask specifically how cosmetic damage to metal roofing and siding is treated.
• Winter freezes. Tiny homes and ADUs often rely on compact plumbing and creative runs for supply lines. Those lines can be more exposed to cold, especially in crawlspaces or skirting. Many policies have conditions around heat maintenance and winterization—know what you’re required to do to keep burst-pipe claims covered.
• Distance from fire services. Rural sites outside town centers may be farther from fire hydrants and staffed fire stations. That can affect both pricing and eligibility with certain carriers.
• Trees and debris. Tucking a small home under the trees looks great on Instagram. It’s less appealing when a limb falls or debris damages the roof. Review debris removal limits and coverage for falling objects.

None of these risks mean you shouldn’t build a backyard cottage or park a tiny home. They simply mean you should size your coverage and deductibles to match how exposed your unit is—and how quickly you could repair or replace it if something goes wrong.

Renting Out a Tiny Home or ADU in Preble County

Even if your primary goal is housing a family member, it’s natural to think, “If they move out, I’ll just list it on Airbnb or rent it to a local teacher or nurse.” That flexibility is one of the attractions of tiny homes and ADUs—but it’s also where many insurance plans fall apart.

Once you begin collecting rent or nightly income, you’ve crossed into business use. Here’s what that means for coverage:

• Standard homeowners policies often exclude business activity. If your policy isn’t specifically endorsed for renting, a guest injury or property damage claim may be denied.
• Landlord or dwelling policies handle long-term tenants better. They’re designed for 6–12+ month leases and may offer optional coverage for loss of rents if a covered claim puts the unit out of service.
• Short-term rentals usually require special endorsements or policies. If you list a tiny home or ADU on Airbnb or VRBO, talk to your agent before you go live. Platforms provide limited host protections, but they are not a substitute for a properly structured policy.

If you’re even thinking about renting in the next year or two, let your agent know up front. It’s often easier to structure coverage correctly from day one than to fix a policy after income has already started.

Cost Drivers: What Affects Tiny Home & ADU Insurance in Preble County

Premiums for small units vary, but we consistently see a few levers make the most difference:

• Mobility. A unit on wheels that travels occasionally carries different risks than a cottage that never moves. RV-style policies rate for transit risk; stationary dwelling policies don’t.
• Construction quality and documentation. Units built by recognized manufacturers or licensed contractors, with clear documentation, are easier to place and may secure better pricing than undocumented DIY builds.
• Location on the property. Distance from the main home, elevation, tree cover, and exposure to wind all factor into risk.
• Coverage limits and valuation. Replacement cost coverage and higher limits cost more but protect more value. Underinsuring to keep premiums low is a short-term savings that can become a long-term regret.
• Use: personal vs. rental. Adding rental exposure, especially short-term rentals, typically increases premium but also changes how claims are handled.

Checklist: How to Properly Insure a Tiny Home or ADU in Preble County

If you’re planning a project—or if you already have a second unit on your property—use this practical checklist to get your coverage right:

1. Define the structure. Is it on a foundation or on wheels? Stick-built, modular, or manufactured? What size is it?
2. Clarify the use. Who will live there? Family only, long-term tenant, short-term guests, or some mix over time?
3. Gather documentation. Keep build sheets, receipts, contractor invoices, certifications, permits, and clear photos of the finished space and key systems.
4. Talk to your township or village. Confirm how the unit is classified (ADU, RV, manufactured home, second dwelling) and what’s allowed on your lot.
5. Review your existing policies. Bring your homeowners and landlord policies to your agent so they can see current limits and exclusions.
6. Request quotes that fit the real use. Ask your agent to walk through options: extending the current policy, adding a dwelling/landlord policy, or exploring specialty tiny home/RV programs if applicable.
7. Dial in limits and deductibles. Choose limits that reflect replacement cost as closely as possible and deductibles you could actually pay after a loss.
8. Plan for income protection if renting. If rental income is part of the plan, ask about loss of rents coverage so a fire or storm doesn’t wipe out your cash flow.
9. Schedule regular reviews. Revisit coverage annually—or sooner if you add solar, expand the deck, start renting, or change who lives there.

Connecting Tiny Homes & ADUs to Your Preble County ZIP Code Guides

Tiny homes and ADUs might feel like a niche topic, but they fit neatly inside the broader risk picture for each ZIP code in Preble County. The same local factors that affect standard homes—wind and hail exposure, distance from fire services, flood potential, and neighborhood layout—also shape how tiny units should be insured.

As you think through your project, it can be helpful to look at the specific guidance for your ZIP code in Preble County: local claims patterns, common coverage gaps, and carrier appetite for different property types. That context helps you see how your tiny home or ADU fits into the bigger picture.

When to Call an Agent (And What to Bring)

If any of the following is true, it’s a good time to talk with an independent Ohio agent who knows Preble County:

• You’re planning a tiny home or ADU on family land in the next 6–12 months
• You’re considering buying into Cedar Springs Tiny Village or a similar community
• You already built a garage apartment, basement suite, or backyard cottage and aren’t sure how it’s insured
• You’re about to start renting a secondary unit—short-term or long-term

Bring photos, basic floor plans, any building or zoning paperwork, and your current insurance declarations pages. With those in hand, an agent can quickly see how your project meshes with carrier guidelines and walk you through the tradeoffs between policy types, deductibles, and endorsements.

Protecting Tiny Homes and ADUs in Preble County with Ingram Insurance

At Ingram Insurance, we work every day with homeowners and investors who are trying to use their properties more creatively—whether that’s a tiny house in New Paris, an ADU in a Dayton suburb, or a simple in-law suite on a family farm. Our job is to translate your real-world setup into policies that respond when you need them most.

If you’re dreaming, planning, or already living small in Preble County, we’d be glad to review your current coverage or help you design a plan from scratch.

Contact Us:
📞 (937) 741-5100
✉️ contact@insuredbyingram.com
🌐 www.insuredbyingram.com

For a deeper dive into statewide considerations, read our main guide: Tiny Home Insurance in Ohio: Big Protection for the Smallest Homes.