A tiny space with less junk in it translates into less time spent cleaning and maintaining it. Tiny houses are designed and built from green building materials. Be creative about storage and multi-function furniture: A table can be made with shelves for storage underneath the table surface. Or you could design a table that folds out of the wall, then folds up and down to become a bed. Use broad, deep shelves (including built-in) and drawers, and wall and ceiling mounted items, to minimize the proportion of wasted space above, below, and around the edges of items (due to packing geometry or falling-off-the-edge risk).
Since insurance companies aren’t non profits and are in business to make money, you will often have difficulty getting the money from them. By owning a tiny house you can minimize the amount you give to them in the first place.