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.
Get contents insurance for your belongings
Use the table below to compare contents insurance policies from Finder partners. Don't forget to click "View details" for a more comprehensive breakdown of the benefits.
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.
Get landlord insurance for your granny flat
Depending on which policy you get, landlord insurance can protect the building you're renting out, the contents inside it, and even the money you lose if your tenant defaults.
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.
Why you can trust Finder's home insurance experts
We're free
You pay the same as buying directly from the home insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.
Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of home insurance brands, making it easier for you to find a good deal.
We're here to help
Since 2014, we've helped 150,000+ people find home insurance by explaining your cover options simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.
Frequently asked questions
You don't technically need contents insurance. However, if you have a lot of belongings, it may be worth looking into as it's not particularly expensive.
No. You'll need landlord insurance to get protection for rent default. However, only certain policies will cover that, so be careful to check the benefits.
Granny flat insurance is really just standard home insurance. You can compare policies online or go direct to the insurance company for a quote.
Nicola Middlemiss is a contributing writer at Finder, with a special interest in personal finance and insurance. Formerly a business and finance journalist, Nicola has written thousands of articles helping Australians better understand insurance and grow their personal wealth. She has contributed to a wide range of publications, including Domain, the Educator, Financy, Fundraising and Philanthropy, Insurance Business, MoneyMag, Mortgage Professional, Yahoo Finance, Your Investment Property, and Wealth Professional. Nicola has a Tier 1 General Insurance (General Advice) certification and a Bachelor's degree from the University of Leeds.
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