Maintaining a home

Does Home Insurance cover my granny flat or shed?

4 May 2023

Suncorp Home Insurance covers fixed structures at the insured address for things like fires, flood and storms*. What counts as a ‘fixed structure’ can range from decks and swimming pools to separate buildings like granny flats and sheds – and cover extends beyond those, too!

Provided your shed is used for domestic purposes only, it’ll be covered as part of your home insurance. For example, a shed used for shearing or a stable would not be covered. You can also check what else is covered, along with existing limitations, by exploring our visual guide to Suncorp Home Insurance. It offers a handy run-through of the basics.

What is considered a granny flat or shed?

If it’s not your main house, it has four walls and a roof, and isn’t subdivided from the insured property, it’s probably considered a granny flat or shed and, depending on how you use it, may be covered by your home insurance. As an example, the coverage may vary if the home is rented out for a short-term rental. Additionally, if the property is subdivided and the granny flat gets its own address, then it would need to be insured separately from the main home under a new policy.

Check the PDS for coverage exclusions and limitations.

Explore Suncorp Home Insurance

How to insure your granny flat or shed

When a granny flat or shed is covered under a home insurance policy, you don’t need to specify them as they are considered part of the home All you need to do is make sure that your sum insured is up to date and is enough to rebuild, including any other covered external structures like sheds in addition to the home itself.

Your sum insured is the most you’ll be paid for repairs or rebuilding in the event of a claim. If that sum is only enough to cover your main house, then you may find yourself underinsured, and be left without enough money to rebuild your granny flat or shed – even though they’re technically covered.

You may want to consider checking your policy details and ensuring that your cover suits your needs and circumstances. You don’t need to wait for your renewal to roll around.

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*We do not insure you for bushfire, storm, storm surge, flood or tsunami in the first 72 hours of your policy.

Insurance is issued by AAI Limited ABN 48 005 297 807 trading as Suncorp Insurance. Consider the Product Disclosure Statement before making a decision about this insurance. The Target Market Determination is also available.

This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.

The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.