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Do You Need Separate Insurance For Your Granny Annexe?

One quick Google of ‘Do I need separate insurance for my granny annexe?’ and you will see that homeowners have faced some confusion in recent years when it comes to granny annexe insurance, and whether an annexe will be covered by their existing home policy.

This article looks at the insurance status for granny annexes and what you should check with your provider.

Granny Annexe Insurance Or Landlords Insurance?

A granny annexe is a big investment that will bring your family years of practical use so it’s natural you want to make sure your annexe is protected by insurance, just in case the worst happens and there is an accident such as a fire.

There isn’t a simple answer as to what you should do regarding granny annexe insurance because it appears insurers have different rules and policies on annexes. AA has even described granny annexe insurance as a bit of a grey area:

“Granny flats do, however, present a grey area for insurance. Policies can differ greatly, depending on what the annexes are used for.” – AA

We also came across an interesting discussion on a forum about granny annexe insurance, where a customer had been advised to take out landlord’s insurance.

That doesn’t quite seem correct though, as most people with granny annexes will not be renting them out – most likely because it would be a breach of planning permission.

To be considered an annexe and granted planning, a granny annexe must be ‘ancillary’ to the main address (meaning attached to and secondary to the primary dwelling).

From what we have found, most insurers will cover your annexe with your building insurance, so long as the annexe has the same address as your main property (which it should) and that a relative is living in the annexe. Just remember to speak to your insurer about the value of the structure – outbuildings that are normally included in a building policy may not have significant value, whereas a granny annexe is a relatively expensive investment. Just double check your insurers know the value of your annexe after it is built and let them advise you on what to do next.

If you have a separate outbuilding that is used as a rental property – that’s a different matter and landlord insurance would likely be the most appropriate.

It does seem as though a lot of insurers are not super clear on their policies around annexes – at least on their websites anyway!

What About Granny Annexe Contents Insurance?

Content insurance for granny annexes is where things get tricky – you may have a separate contents policy for your home or a combined building and content policy. Content policies normally do include items that are stored in outbuildings, such as sheds but some can be very specific about which items they do and don’t cover.

The total value for contents cover for outer buildings, like sheds, is typically capped too – at quite a low amount. The amount the contents of your shed are valued at is bound to be significantly less than the contents of a granny annexe (unless you store your diamonds in your shed, which would be silly!).

Inside a granny annexe, your loved one is likely to have valuable items like a television, kitchen equipment, furnishings, and personal valuables.

So when it comes to content insurance for your annexe, you really must double check with your insurer, what is the maximum value they would pay out for the contents of your annexe.


We would love to have a straightforward answer for you on the topic of granny annexe insurance, but unfortunately, it looks like each case is different, depending on who you have living in your annexe, and who your insurer is.

Our advice is that you absolutely must contact your insurance provider as soon as your annexe is built and explain the situation to them.

Because grant annexes have become so popular in recent years, some insurers are starting to pick up on this and now have separate insurance policies for homes with annexes. There are also specialist insurers out there that work with homeowners that have homes classed as ‘unusual’, so if you have no joy with your current insurer, you may want to consider switching.

Whatever you decide to do, don’t delay sorting out your insurance to ensure your new granny annexe is protected!