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Your home insurance may provide cover for your granny flat, but there are exceptions. Here’s what you need to know to make sure you have the right coverage.
What is considered a granny flat?
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.
How do I know if my home insurance covers my granny flat?
Allianz Home and Contents Insurance can 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.
What if I rent out my granny flat to tenants?
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.
What insurance do I need for my granny flat?
The insurance you may want for your granny flat depends on your circumstances. The following table can help you weigh up your options.
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| If you’re | You may want |
| A family member living in a granny flat | Contents Insurance |
| Renting out your granny flat | Landlord Insurance |
| Renting out your granny flat and living in the main property | Landlord Insurance for granny flat and Home Insurance for main property |
| A tenant renting a granny flat | Renters Insurance |
Frequently asked questions
If you're living in and renting a granny flat, you may be eligible for Renters Insurance. Renters insurance can cover loss or damage caused by insured events to items you own. Even if your landlord has landlord insurance, it won’t cover your contents. Landlord insurance doesn’t cover a tenant's belongings.
Insurance doesn’t typically cover a non-compliant granny flat. You'll need to meet local building codes and regulations if you want insurance cover.
If the granny flat is subdivided and has its own address, it'll need its own insurance policy. In most cases, to be covered, each address needs a separate insurance policy.
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Disclaimer
This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL234708 ("Allianz"). In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.
Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.
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Any advice here does not take into account your individual objectives, financial situation or needs. Terms, conditions, limits, and exclusions apply. Before making a decision about this insurance, consider the relevant Product Disclosure Statement (PDS)/Policy Wording and Supplementary PDS (if applicable). Where applicable, the PDS/Policy Wording, Supplementary PDS and Target Market Determination (TMD) for this insurance are available on this website. We do not provide any form of advice if you call us to enquire about or purchase a product.
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