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. 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.
How do I know if my home insurance covers my granny flat?
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.
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 .
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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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