Question 1

Do I need to declare a family granny flat to my insurer?

Accepted Answer

Yes. Always let your current insurer know the flat exists, even if you do not rent it out. Failing to disclose a second kitchen or bathroom can void your entire main home policy later.

Question 2

Will standard home policies cover Airbnb use?

Accepted Answer

No. If you list your granny flat on platforms like Airbnb, you must ensure your policy includes specific short-term rental coverage to stay protected.

Question 3

Can I insure a granny flat while it is still under construction?

Accepted Answer

No, standard home or landlord policies won't cover it during the build phase. You must get specific builder’s risk insurance (also known as construction insurance) to cover theft of materials, structural damage, or liability injuries before the granny flat is fully finished and ready to occupy.

Question 4

Does adding a granny flat increase my main home’s insurance premium?

Accepted Answer

Yes, it usually does. Adding a secondary dwelling increases the total replacement and rebuild cost of your entire property asset. Even if your insurer allows you to bundle both structures under one policy, your premium will adjust to reflect the added value and risk of the new building.

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