Home Home Insurance Newbie’s Information to Granny Flats

Newbie’s Information to Granny Flats

Newbie’s Information to Granny Flats


Granny flats are rising in popularity for households all throughout the nation – and for good motive! Not solely can a granny flat assist growing older family members keep a way of independence, however they’ll additionally offset the excessive value of shopping for a house.

However including a granny flat isn’t a easy DIY dwelling challenge. Let’s dig into what granny flats are and what that you must know earlier than you determine if it’s the most suitable choice in your family.

What Is a Granny Flat?

Very first thing’s first: a granny flat is a small area, usually designed for only one or two folks to reside in. This can be a studio condo or small one-bedroom construction, and it could be a part of your main residence or a separate constructing altogether.

We’re calling this sort of area a granny flat, however the extra official title is “accent dwelling unit” (ADU). You may also have heard granny flats known as:

  • Mom-in-law cottages.
  • Granny pods.
  • In-law suites.
  • Coach homes.

Because the title suggests, a granny flat is usually constructed for aged relations to allow them to reside on the identical property as their grownup kids and grandchildren. Nevertheless, many householders use these areas for grownup kids or home staff. Some even hire them out, however that is determined by native legal guidelines – extra on that later.

Granny flats are sometimes designed as self-contained areas, in order that they embrace many of the facilities you’d count on in a full-sized dwelling, like a kitchen and a rest room, solely smaller. However you may even see in-law suites which might be truly residences inside a house. These kind of granny flats normally have separate entrances from the remainder of the home.

What Are the Advantages of Granny Flats?

Constructing a granny flat has a variety of advantages for householders. The primary, and possibly the obvious is that an ADU can imply further residing area for the household. That, and the safety of figuring out your older relations are shut by, might be sufficient of a motive to construct a granny flat.

However there are some financial advantages, too. One research discovered that ADUs can add as a lot as
34% to your assessed property worth

. One other potential bonus is rental revenue. Many householders use their granny flat to offset their mortgage cost through the use of them as long-term and short-term leases.

If you wish to use your ADU for further revenue, then you definitely actually need to take a detailed take a look at dwelling insurance coverage. Most householders insurance policies don’t cowl short-term leases. (Be taught why in our article Does Dwelling Insurance coverage Cowl Airbnb?) For long-term leases, it’s possible you’ll must get a landlord insurance coverage coverage.

5 Issues to Think about Earlier than Including a Granny Flat

Whereas you may even see loads of benefits to having a granny flat, you need to consider carefully earlier than you add one to your property. Listed here are 5 issues to think about earlier than constructing a granny flat.


There’s no means round it: including a granny flat isn’t low cost. How a lot one prices is determined by any variety of elements, however crucial one might be the kind. Constructing any construction from the bottom up might be pricey, however this one must be a livable area. Meaning it wants plumbing, gasoline, and electrical added to make it a habitable area. However don’t neglect to think about the price of development and permits, too.


Examine your native constructing codes to ensure ADUs are allowed in your space. Many locations might enable single-family dwelling properties so as to add granny flats, however not all do. You actually don’t need to spend the money and time constructing one thing that’s towards zoning legal guidelines!

Whilst you’re at it, you may need to test together with your householders affiliation (HOA) guidelines.Some might forbid you from including an ADU.

Insurance coverage

Your dwelling insurance coverage will probably be affected for those who construct a granny flat. Usually, a stand-alone ADU constructed on the grounds of a single-family dwelling is usually lined as an different construction beneath Protection B. Nevertheless, a granny flat that’s freestanding and has a separate postal handle, whereas unusual, normally wants its personal coverage the place it may very well be lined by Protection A.

The opposite choice is transforming your own home so as to add a granny flat. For those who create an in-law suite in your main residence, then it’s most definitely lined by the dwelling portion of your own home insurance coverage coverage. Both means, it’s possible you’ll need to discuss to your insurer to ensure you have ample protection.

Another caveat: a granny flat that you simply use to generate revenue to others usually requires a distinct sort of insurance coverage and will not be lined by your householders coverage.


Dimension impacts prices, however it may possibly additionally decide whether or not or not you possibly can legally construct a granny flat. Some states have legal guidelines proscribing how massive your granny flat might be. California, for instance, solely permits you to construct an ADU that’s
1200 sq. toes or much less

, assuming there aren’t any native legal guidelines that restrict measurement.


You’ll probably want permits to construct a granny flat. Your contractor ought to give you the chance that will help you pull the fitting ones. Don’t begin work till you might have the permits in hand otherwise you danger having development shut down.

Regardless of these elements, including a granny flat (ADU, carriage home, or no matter you prefer to name it) is unquestionably achievable. All it takes is a little bit creativeness and a variety of planning, however ultimately you can have a good looking area for your loved ones to remain.



Please enter your comment!
Please enter your name here