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Granny flat insurance 

How to find the right granny flat insurance, whether you're renting yours out or you're living in one.

Do you live in a granny flat? Compare contents insurance
Do you own a granny flat? Compare landlord insurance

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.

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.

Name Product Home Contents Cover Fire, Storm & Theft Damage Outdoor Contents Portable Contents Cover Accidental Damage to Home or Belongings Online Discount
Youi Contents Insurance
Best Rated Brand
Youi Contents Insurance
Optional
Optional
Our verdict: Finder’s 2022 Insurer of the Year for Customer Satisfaction and our Top Pick for Fire Damage cover. It’s good if you want a tailored quote over the phone.
Budget Direct Contents Insurance
Optional
Optional
Our verdict: The most popular insurer on Finder, Budget Direct prioritises low-cost cover and gives you 15% off your first year. You need to pay extra for flood cover and accidental damage.
QBE Contents Insurance
Optional
Optional
Our verdict: It covers essentials such as fire and theft plus comes with some good perks such as security upgrades after a burglary and up to 10% off your first year.
Honey Contents Insurance
5% of your contents sum insured
Optional
Optional
Our verdict: Honey gives you $250 smart sensors to reduce accidents and estimates the value of your contents. It was also a finalist for the comprehensive category in the Finder Awards.
Australia Post Contents Insurance
Optional
Optional
Our verdict: Covers common claims such as fire, storms and water damage. Like most contents policies, you need to pay extra for accidental damage cover.
Kogan Contents Insurance
Optional
Optional
Our verdict: Good comprehensive cover (issued by QBE). Also, get a 6% discount off your first year plus $10 ongoing monthly credit. T&Cs apply.
Qantas Contents Insurance
Optional
Optional
Our verdict: Earn up to 30K Qantas Points for joining by 30 September. Plus save 30% on your 1st year’s premium for purchasing a combined home and contents policy online. T&Cs apply.
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Things that contents insurance will cover

Contents insurance will kick in following a whole range of different events, including:

EventExample
TheftSomeone breaks into your granny flat and steals your TV.
StormA severe storm destroys your outdoor furniture.
Escape of liquidA pipe bursts, ruining rugs and furniture.
FireA fire destroys all of your belongings.
VandalismSomeone breaks into your home and damages items.
LightningDamage to your belongings by a direct lightning strike.
Glass breakageAn antique mirror smashes.
ExplosionA gas explosion damages your home and your belongings are impacted.
ImpactA tree falls on your home, damaging the contents inside.
FloodYour 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:

ExclusionExample
Criminal actsYour belongings are damaged due to your own illegal behaviour.
Intentional actsYou intentionally damage an item in your home.
"Open air" contentsThese include gift cards, mobile phones and laptops – unless you specifically add them to your policy.
Wear and tearYour belongings fall apart or are damaged due to general wear and tear.
RepossessionYour belongings are legally repossessed or confiscated.
VerminMice 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.

Name Product Tenant Default and Damage Loss of Rent Accidental Damage Sum Insured Safeguard Cooling-off Period Cheapest way to pay
Youi Landlord Building and Contents Insurance

Optional

The reasonable rental amount for up to 12 months
20 days
Annually
Cover for investment property from fire, theft and numerous weather events.
Budget Direct Landlord Home & Contents Insurance

Optional

10% of the sum insured amount of your property
Optional
21 days
Annually
Save 30% on your first year's premium when you buy a combined home and contents policy online. T&Cs apply.
Qantas Landlord Home and Contents Insurance

Optional

10% of the sum insured amount of your property
Optional
21 days
Annually
Earn up to 30,000 Qantas Points with every Qantas Landlord Insurance policy you take out by 30 September. T&Cs and exclusions apply.
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Things that landlord insurance will cover

Landlord insurance offers wide protection to people renting out their granny flat, for events including:

EventExample
TheftYour tenant steals items from inside your granny flat.
StormA severe storm destroys the roof of your granny flat.
Rent defaultSome 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 liquidA pipe bursts, damaging the ceilings in your home.
FireA fire destroys your granny flat and it must be rebuilt.
VandalismSomeone breaks the windows of your granny flat or graffitis the outside.
LightningA lightning strike damages the property.
Breakage of glass, ceramics and sanitary featuresThe solar panels on your granny flat are damaged in a storm.
ExplosionA gas explosion damages your granny flat and repairs are needed.
ImpactA tree falls on your granny flat, damaging the roof.
FloodYour 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:

ExclusionExample
No leaseIf you don't have a written lease agreement with your tennant, certain benefits may not be included, such as rent default.
Wear and tearGeneral wear and tear won't be covered by your policy.
Criminal actsYour granny flat is damaged due to your own illegal behaviour.
Intentional actsYou intentionally damage your granny flat.
VerminMice chew threw the electrics in your granny flat.
AsbestosAny claims associated with asbestos will likely be denied.
Unoccupied buildingsIf 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

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Frequently asked questions

Nicola Middlemiss's headshot
Senior writer

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. See full bio

Nicola's expertise
Nicola has written 238 Finder guides across topics including:
  • Personal finance
  • Personal insurance, including car, health, home, life, pet and travel insurance
  • Commercial business insurance

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