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Granny Flat Insurance

Two dwellings on one title changes how a landlord policy needs to be set up. We work to get the granny flat, the main house, and the sheds in between properly covered.

2

Dwellings, one policy

$2.5-5.8K

Recent annual premiums

6

Structure checks that matter

Recognition

Industry Awards

THE SHORT ANSWER

Whether your granny flat is covered by your landlord insurance depends on whether it's declared and how the policy defines the insured building. If the insurer knows about the second dwelling and the sum insured covers both buildings, cover generally extends to it, subject to policy terms. If it isn't declared, you can face underinsurance or a dispute at claim time.

Tank arranges landlord cover for granny flats, dual-occupancy properties, sheds and outbuildings, with the sum insured set across every structure on the title and loss of rent reflecting each lease. If your current policy predates the flat, we'll review it and restructure the cover where it needs it.

01WHAT'S INSURED

What a Properly Structured Policy Covers

A landlord policy set up for a dual-occupancy property should pick up every structure on the title. Here's the shape of it, subject to policy terms, limits and exclusions.

What's covered Key exclusions and considerations
Main dwelling and granny flat - fire, storm, escape of water, impact and other insured events Both dwellings must be declared; an undeclared second dwelling can cause problems at claim time
Sheds, garages, carports and other outbuildings on the same title Sum insured must reflect them; commercial use of an outbuilding needs to be disclosed
Loss of rent across both dwellings after insured damage The limit should match combined rental income, not just the main house lease
Legal liability as property owner Occupancy arrangement (one lease, two leases, owner plus tenant) affects how the risk is rated
Tenant damage and rent default (where selected) Availability varies by insurer and occupancy mix; short-stay letting is usually treated differently
Fences, retaining walls, paths and other improvements Often sub-limited; check the figures against what's actually on the property

GRANNY FLAT QUOTE

Get your granny flat properly covered

Tell us about the property - both dwellings, the occupancy setup, and the rent each earns. We'll structure a landlord policy built around everything on the title.

Open quote form

02WHICH SETUP IS YOURS?

Which Setup Is Yours? Five Ways a House and Granny Flat Get Insured

The answer to "is my granny flat covered" changes with who lives where and who pays rent. Find your setup below. Each one can be placed; the work is matching the policy to the property as it actually stands.

You live in the front house, the granny flat is rented out

One policy can be structured with the main house as owner-occupied and the granny flat declared as a tenanted secondary dwelling. Your own home cover sits on the house, and the landlord elements - loss of rent, tenant damage where selected, legal liability as owner - attach to the flat. Insurers rate owner-plus-tenant differently to a fully tenanted property, and not every home policy allows a tenanted dwelling on the title, so the setup has to be declared exactly as it is.

What we need from you: The lease on the flat, the weekly rent, and whether the flat has its own entrance and meters.

Both dwellings are rented out on separate leases

This is a dual-occupancy landlord risk. Both dwellings and both leases are declared, the building sum insured is set across the whole title, and loss of rent reflects the combined weekly rent. Some standard landlord products load for a second lease or don't accommodate it, so appetite is assessed case by case and we take it to the markets that write both dwellings on one policy. A recent Northern Beaches placement of exactly this setup went to CGU at approximately $5,800 a year.

What we need from you: Both leases, both rents, and the rebuild cost of each dwelling.

Family living in the granny flat rent-free

No rent doesn't mean nothing to declare. The flat is still a second dwelling on the title, so it needs to be on the policy and inside the sum insured. Because there is no lease, loss of rent on the flat doesn't apply, and the occupant's own belongings are theirs to insure under their own contents policy. Liability for the whole site still sits with you as owner.

What we need from you: Who lives in the flat and whether any rent or board changes hands.

Short-stay or Airbnb letting

Short-stay letting is rated differently from a residential lease, and some landlord products exclude it or cap the nights per year. That's a reason to tell us up front, not to leave it out: we screen the setup against the markets that accept short-stay before anything is submitted. If the main house is on a lease and only the flat is short-stay, say so, because the mix matters.

What we need from you: Nights let per year, which dwelling is short-stay, and whether you also live on site.

Dual key or dual occupancy under one roof

Two self-contained homes under one roof on one title, usually with a shared entry, or two attached dwellings on one lot. To an insurer this is the same family as a house and granny flat: one title, two households. A one-roofline dual occupancy can be written as a single free-standing home policy with both households declared. A dual key apartment inside a strata scheme is different again: the building sits under the strata policy and you need landlord cover for both units.

What we need from you: The title (freehold or strata lot), how each home is occupied, and the rent on each.

03GETTING THE STRUCTURE RIGHT

Six Things That Decide Whether Your Cover Actually Works

The granny flat itself isn't the hard part. It's making sure the policy reflects the property as it stands today.

01

Declare the Second Dwelling

The insurer needs to know there are two dwellings on the title, how each is occupied, and who lives in them. If the granny flat isn't declared, the policy may not respond the way you expect at claim time, subject to its terms.

02

Sum Insured Across Both Buildings

The building sum insured should reflect the full rebuild cost of the main house, the granny flat, and everything connecting them - driveways, fencing, retaining walls. A figure set before the flat was built can leave you underinsured.

03

Separate Leases and Dual Occupancy

One tenant across both dwellings is a different risk to two separate leases, or an owner in the front and a tenant in the back. Each arrangement is rated differently, and some insurers only write certain configurations.

04

Sheds and Outbuildings

Sheds, garages, carports and studios generally fall under the building definition when they're on the same title, subject to policy terms. Larger structures, or anything used commercially, should be called out specifically.

05

Loss of Rent Per Dwelling

If both dwellings earn rent, loss of rent cover should reflect the combined income. Two leases at $500 a week is $1,000 a week of exposure if the property is damaged and both tenants have to move out.

06

When the Policy Needs Restructuring

Some landlord policies handle a declared secondary dwelling comfortably. Others cap the number of dwellings, or exclude dual occupancy altogether. When the standard product doesn't fit, the cover needs to be restructured or moved to a market that writes it properly.

What it costs: Tank has recently arranged landlord cover for dual-occupancy and granny-flat properties with annual premiums between approximately $2,500 and $5,800, depending on sum insured and location. Your property will be rated on its own details.

CLIENT SUCCESS

Two Dwellings, One Title: How These Risks Actually Get Placed

Recent Tank placements, anonymised. Premiums are approximate and reflect each risk at the time - not a guide to future pricing.

Premiums and outcomes described are specific to each client and indicative only. Your own terms will depend on your circumstances and the insurer.

GRANNY FLAT FAQS

Common Questions About Granny Flat Insurance

It depends on whether the granny flat is declared on the policy and how the policy defines the insured building. If the insurer knows about the second dwelling and the sum insured reflects both buildings, cover generally extends to it, subject to the policy terms. If the flat was built after the policy started and never declared, you may face underinsurance or a dispute at claim time. The safest move is to check what's actually noted on your schedule, or ask us to review it.
Usually not. Where the granny flat sits on the same title as the main house, most configurations can be covered under one landlord policy with both dwellings declared and the sum insured set across the two. A separate policy tends to come up only where the occupancy mix or the insurer's rules don't allow both dwellings on one product. We look at the setup and tell you which structure fits.
Sheds, garages, carports and similar outbuildings on the same title generally fall within the building definition of a landlord policy, subject to its terms. The catch is the sum insured - if it was set on the house alone, the outbuildings may not be fully reflected in the rebuild figure. Large sheds, studios or anything used for business purposes should be declared specifically.
If the policy hasn't been updated to reflect the second dwelling, two problems can arise. First, the sum insured may be too low to rebuild both structures, which means underinsurance. Second, the insurer assessed and priced a different risk to the one that exists, which can complicate a claim depending on the policy terms and your disclosure obligations. It's fixable - the policy gets updated or restructured - but it's far better done before a claim than after.
Yes, though not every insurer writes it. Two dwellings on one title with separate leases is a dual-occupancy risk, and some standard landlord products either load for it or won't accommodate it. Tank has arranged cover for exactly this setup, including a Northern Beaches owner with a main house and granny flat on separate leases. Both dwellings and both leases were declared up front, the building sum insured was set across the whole property, and CGU covered both dwellings under one policy at approximately $5,800 a year. Appetite is assessed case by case, so before approaching any market we clarify the configuration, the lease arrangements and how each dwelling is occupied, because that's what decides which insurers can write it.
Tank has recently arranged landlord cover for dual-occupancy and granny-flat properties with annual premiums between approximately $2,500 and $5,800, depending on sum insured and location. The occupancy mix, the age and construction of both dwellings, and the address all move the figure, so treat that as a guide rather than a quote. Even a 1910 main house split into two tenancies with a separately rented granny flat came in at the lower end of that range once the rewiring, replumbing and protections were properly disclosed.
For a granny flat on the same title as your home there are four pieces: building cover for the flat under your home or landlord policy, with the flat declared and inside the sum insured; landlord cover if the flat is rented, which adds loss of rent and, where selected, tenant damage and rent default; contents cover for anything of yours kept in it; and legal liability as the property owner. A shed, garage, carport or studio is generally treated as an outbuilding under the building definition, subject to the policy terms, so the main job is making sure the sum insured actually includes it. A tenant living in the flat insures their own belongings under their own contents policy.
Three reasons. Rebuild cost: if the sum insured was set before the flat or shed was built, it won't include them, and a claim on the house can leave you short for the rest of the site. Income: a rented granny flat is rent you lose if it's damaged and the tenant has to move out, and loss of rent only responds for a dwelling the insurer knows about. Liability: as owner you carry the legal liability for anyone injured on the property, in either dwelling or the shed. If a lender holds the property as security, its loan conditions may also require building cover across everything on the title.
With all the information in hand - the rebuild value of each dwelling, how each is occupied, the leases and the address - cover can be arranged in as little as 24 hours. Usually it takes 48 to 72 hours, because the markets that write two dwellings on one title need the occupancy detail before they release terms. If settlement is close, send the contract date with the enquiry so it's prioritised, and a certificate of currency follows as soon as the policy is bound.
Close to it. A dual key home is two self-contained homes under one roof on one title, usually sharing an entry; a dual occupancy is two dwellings on one lot, attached or detached. To an insurer they are the same family as a house and granny flat: one title, two households, each declared with its own occupancy and rent. A one-roofline dual occupancy can be written as a single free-standing home policy with both households declared, and detached dwellings are declared as two dwellings on the one policy. The exception is a dual key apartment inside a strata scheme, where the building sits under the strata policy and you need landlord cover for the contents, loss of rent and liability on both units.

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Not sure whether your granny flat is properly covered? Send us your current schedule and we'll review it.

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Last updated: 19/07/2026

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