Insurance for non-council approved Granny Flats

Dear Property Investors,

I have a house with a granny flat that is not council approved.
Does anyone know of an insurance company who will insure me for both the house and the granny flat even though it is not council approved?
My original insurer, CGU have decided not to insure me anymore due to paying out for a recent fire at a different property.
Please help, I don't know what to do and am currently uninsured! :eek:


I'd apply for council approval ASAP,
from what I heard the granny flat approval rules in Sydney have been relaxed due to the housing shortage.

If the granny flat is currently rented, leave it vacant till the council approval has come through.

Otherwise lock it up or as a last resort demolish it.
Hi BV,

My granny flat has been rented for years. The council won't approve the granny flat due to the land size. They're pretty common in my area and 99% are not council approved.
I really don't want to evict the tenant or lock up the cabin.
Hopefully someone can suggest an agreeable insurance company, please?

Hi Celica,

Yep, I've tried that too!
That's why I've come here for suggestions - hopefully another investor has tracked down a company or a broker that can help me.
I advised others on this forum with the same information nine years ago! :rolleyes:

I don't believe any insurer will insure a non approved duelling.
The risk to them is very high.

If you did take insurance and didn't mention the granny flat you could probably get away with it.
However, if you ever make a claim, and the insurer found out of its existence
they could use non disclosure as a reason to refuse payment, so it would be like you are uninsured.

What are you going to do?
The risk to you renting out a non approved duelling is enormous.
Think of the possibility of 1 of your tenants getting injured or dieing in your property.
You could get sued and lose not only this property but all of your assets.:eek:
CGU insured me with full disclosure, written in black and white on the policy "non-council approved granny flat".
They also paid out for the fire which gutted one of my granny flats.
This is the reason they don't want to insure me anymore.
Thanks for the tip TigerGT, I'll give them a try.
Are there any other 'house and granny flat' investors with compliant insurance companies?

Please help!

Oh I'm really worried now and I'm losing sleep. :eek:
As of 13th October 2008, ING changed their underwriter from CGU to QBE so no longer insure two lots of tenants on the one property even if the granny flat is council approved.

So I'm desperate for any suggestions, please!

Can anyone suggest a broker or an insurance company that I could try? :confused:

Please help,
GIO do ours no problems. Its noted on the policy as flats under same roof.

Didn't seem to matter that it was council approved (which it is)

If they were separate buildings then I would have needed seperate policies.