Is my granny flat covered by home insurance?

A granny flat is a self-contained home that’s often attached to, or detached from, the main house. It may be an extension to your home that serves as a secondary living space, often defined as a secondary dwelling.

Traditionally, a granny flat is a living space for an elderly parent where they can maintain their independence while staying close to family. It can be useful for any family member who needs their own space, or a quiet area to work from home.

A granny flat is usually on the same title as the main house, i.e. it has the same insured address. For insurance purposes, the occupancy must be the same as the main house. The owner occupier of the granny flat, for example, must be the owner occupier of the main house.

 Allianz Home and Contents Insurance can automatically cover your granny flat – unless you rent it out to tenants for money.

It should be part of your insured address as shown on your Allianz Home Insurance policy. When you check your policy, the amount shown for your building sum insured should include your granny flat. This is the maximum amount you’ll receive for repairs or rebuilds if you have to make a claim.

A home insurance calculator can help you estimate how much to insure your home and granny flat for.

If you rent out your granny flat to tenants, your Home Insurance policy won’t be suitable.

You may not realise that renting out your granny flat for extra income can impact your insurance cover. When it’s rented out to tenants for money, your granny flat is considered an investment property, which isn’t covered by home insurance. If you rent it out as a long-term  rental, you might like to consider Allianz Landlord Insurance.

It’s a good idea to check your policy to make sure your cover suits your needs. If you would like to discuss your policy or the type of insurance you need, contact us.