Insurance for Granny flat/Secondary Dwelling

[western_sydney]

I have just about finished putting a Granny Flat behind our existing PPOR and have been advised by our existing insurer (AAMI) that they will no longer be able to cover us once our existing cover ends (they will cover the second building until that time - go figure?).

Is anyone able to suggest an insurer who will cover both buildings? The granny flat will be council approved as soon as I pay them their S94 contributions.

I am hoping to have the building insurance for both under a single policy, but assume I will have to have contents of the PPOR under a separate policy and Landlord insurance under a separate policy again. I have no problem with doing this but would like to keep everything as manageable as possible.

Any guidance would be appreciated.

 

[devank]

I am hoping to have the building insurance for both under a single policy, but assume I will have to have contents of the PPOR under a separate policy and Landlord insurance under a separate policy again.

I'm with NRMA and they will cover granny flats.

I thought I could save some money by keeping one single building insurance and two landlord insurances but that didn't work out. I ended up with getting two separate building Landlord and building insurances.

I did these only two weeks ago but can't remember the reason for why I had to get two policies. I guess it seemed like a good idea at that point in time

 

[western_sydney]

I'm with NRMA and they will cover granny flats.

I thought I could save some money by keeping one single building insurance and two landlord insurances but that didn't work out. I ended up with getting two separate building Landlord and building insurances.

I did these only two weeks ago but can't remember the reason for why I had to get two policies. I guess it seemed like a good idea at that point in time

Thanks Devank I will speak to NRMA and see what they suggest.

 

[tess85]

EBM does too, we rang them about our granny flat, but I suggest you double check your particular circumstances with them first.

 

[Propertunity]

I have just about finished putting a Granny Flat behind our existing PPOR and have been advised by our existing insurer (AAMI) that they will no longer be able to cover us once our existing cover ends

Yeah, AAMI are odd like that. Try GCU for a quote. They do some of mine.

 

[Jacque]

I've also heard that GIO will cover them. Best of luck.

 

[western_sydney]

Thanks to all for the suggestions. I will update with my results.

 

[saiman]

I'm with NRMA and they will cover granny flats.

I thought I could save some money by keeping one single building insurance and two landlord insurances but that didn't work out. I ended up with getting two separate building Landlord and building insurances.

I did these only two weeks ago but can't remember the reason for why I had to get two policies. I guess it seemed like a good idea at that point in time

Hi

I have just renewed with NRMA for both the main dwelling and the granny flat on the one policy. It was only a $66 increase in premium for the granny flat which I was happy about.

 

[devank]

Hi

I have just renewed with NRMA for both the main dwelling and the granny flat on the one policy. It was only a $66 increase in premium for the granny flat which I was happy about.

Are you renting them out separately? If you do then you have two sets of tenants meaning two sets of trouble to the insurance company.

 

[saiman]

Hi

Yes i am renting them out separately

this is for building insurance only and the lady on the phone assured me both will be covered albeit the minimum building and contents value had to be increased by about 100k

in terms of landlord insurance, I just have what they call "extra landlord component" to my existing policy with EBM which costs considerably less than getting 2 separate landlord policies

 

[devank]

So... what is the total cost?

It is costing me $1100 for the main house and $800 for the Granny flat for both building and landlord. I can't exactly remember but the replacement value is about 400K and 120K.

 

[saiman]

my total sum insured is the minimum NRMA allows which is $328k and I am happy with that as the reality of 2 separate dwellings pretty far away from each other to share one major incident is pretty low....

building = $750 for everything
landlord = $290 for my remaining 8 months (don't know how much that is in 12 months, cant be bothered to work it out)