Granny flat insurance
How to find the right granny flat insurance, whether you're renting yours out or you're living in one.
Key takeaways
- You should consider granny flat insurance, whether you live in the flat or rent it out.
- Home insurance will cover the building, while contents insurance will cover items inside.
- If you're not renting out a granny flat, it can be covered on a home insurance policy on your main home.
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I live in a granny flat which someone else owns
If you live in someone else's granny flat, you don't need building insurance. The owners will be responsible for any damages to the building, including the roof and walls.
However, you may benefit from contents insurance. This protects all your belongings inside the granny flat, such as furniture, electronics and even clothing. Some policies will even cover items outside your home, such as garden furniture.
Things that contents insurance will cover
Contents insurance will kick in following a whole range of different events, including:
| Event | Example |
|---|---|
Theft | Someone breaks into your granny flat and steals your TV. |
Storm | A severe storm destroys your outdoor furniture. |
Escape of liquid | A pipe bursts, ruining rugs and furniture. |
Fire | A fire destroys all of your belongings. |
Vandalism | Someone breaks into your home and damages items. |
Lightning | Damage to your belongings by a direct lightning strike. |
Glass breakage | An antique mirror smashes. |
Explosion | A gas explosion damages your home and your belongings are impacted. |
Impact | A tree falls on your home, damaging the contents inside. |
Flood | Your home is flooded and the water damages furniture. This may be an optional extra. |
Things that contents insurance won't cover
Contents insurance provides support in lots of different situations. But it won't cover everything. Typical exclusions are:
| Exclusion | Example |
|---|---|
Criminal acts | Your belongings are damaged due to your own illegal behaviour. |
Intentional acts | You intentionally damage an item in your home. |
"Open air" contents | These include gift cards, mobile phones and laptops – unless you specifically add them to your policy. |
Wear and tear | Your belongings fall apart or are damaged due to general wear and tear. |
Repossession | Your belongings are legally repossessed or confiscated. |
Vermin | Mice chew threw your camping equipment. |
This list isn't exhaustive, so it's important to read your insurance documents carefully.
Granny flat insurance for owners renting their property out
Do you have a granny flat that you're renting out to someone else? That extra income can go a long way, but renting out your property does have its risks.
While home insurance will cover your permanent residence, it probably won't cover your granny flat if you're making an income from it. Instead, you'll need landlord insurance.
Things that landlord insurance will cover
Landlord insurance offers wide protection to people renting out their granny flat, for events including:
| Event | Example |
|---|---|
Theft | Your tenant steals items from inside your granny flat. |
Storm | A severe storm destroys the roof of your granny flat. |
Rent default | Some policies will cover you for lost rent if your tenant disappears or can't pay. However, this is usually an optional extra and isn't always available. |
Escape of liquid | A pipe bursts, damaging the ceilings in your home. |
Fire | A fire destroys your granny flat and it must be rebuilt. |
Vandalism | Someone breaks the windows of your granny flat or graffitis the outside. |
Lightning | A lightning strike damages the property. |
Breakage of glass, ceramics and sanitary features | The solar panels on your granny flat are damaged in a storm. |
Explosion | A gas explosion damages your granny flat and repairs are needed. |
Impact | A tree falls on your granny flat, damaging the roof. |
Flood | Your granny flat is flooded and it requires repair. This may be an optional extra. |
Things that landlord insurance won't cover
While landlord insurance can end up being a huge money-saver, it won't cover everything. Some common exclusions are:
| Exclusion | Example |
|---|---|
No lease | If you don't have a written lease agreement with your tennant, certain benefits may not be included, such as rent default. |
Wear and tear | General wear and tear won't be covered by your policy. |
Criminal acts | Your granny flat is damaged due to your own illegal behaviour. |
Intentional acts | You intentionally damage your granny flat. |
Vermin | Mice chew threw the electrics in your granny flat. |
Asbestos | Any claims associated with asbestos will likely be denied. |
Unoccupied buildings | If your granny flat is unoccupied for a certain period of time, it may not be covered by your landlord policy. |
Frequently asked questions
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Do the policies for Granny flat insurance cover short term lets e.g. Airbnb/Stayz?
Hi Gabrielle, If you’re using a granny flat for short-term lets, you’ll want landlord insurance. Make sure the policy you pick allows for short-term lets – not all do.