{"id":2865,"date":"2022-02-22T13:55:57","date_gmt":"2022-02-22T13:55:57","guid":{"rendered":"https:\/\/www.realtrends.com\/blog\/2022\/02\/22\/must-knows-about-in-law-apartments-and-home-insurance\/"},"modified":"2025-03-13T02:40:21","modified_gmt":"2025-03-13T02:40:21","slug":"must-knows-about-in-law-apartments-and-home-insurance","status":"publish","type":"post","link":"https:\/\/www.realtrends.com\/blog\/2022\/02\/22\/must-knows-about-in-law-apartments-and-home-insurance\/","title":{"rendered":"Must-knows about in-law apartments and home insurance"},"content":{"rendered":"\n

An in-law apartment can raise the property value of any home, which benefits both the buyer and the seller, however, depending on the intended use of the space, homeowners insurance may or may not be enough coverage.<\/p>\n\n\n\n

In-law apartments defined<\/strong><\/p>\n\n\n\n

In-law apartments or in-law suites are common in multi-generational households. They are often built to accommodate aging parents or in-laws, while maintaining privacy for both parties. An in-law apartment \u2014 a loose term \u2014 can be anything from a private bedroom and bathroom to a detached guest house on the property.<\/p>\n\n\n\n

Accessory Dwelling Unit<\/strong><\/p>\n\n\n\n

While the term \u201cin-law apartment\u201d isn\u2019t concrete, it may also be called an accessory dwelling unit (ADU). An ADU is an in-law suite that functions independently of the primary residence<\/a>. It must have its own entrance, kitchen (or kitchenette) and bathroom. The terms in-law suite and accessory dwelling unit are used interchangeable by many, so it\u2019s important to know which a homeowner actually has, especially when it comes to insurance.<\/p>\n\n\n\n

If a homeowner is building a new dwelling<\/a> that will function as an ADU, they should keep in mind that it may impact the new value of the home. Working with a reputable contractor and builder will help the homeowner gain an idea of the new property\u2019s value. The homeowner can also research existing homes with accessory dwelling units to get an idea of the renovated property\u2019s new value.<\/p>\n\n\n\n

What’s covered under homeowners insurance?<\/strong><\/p>\n\n\n\n

Each homeowners insurance policy is highly subjective and varies by insurance company and specific policy. An insurance company will first want to establish whether a home qualifies as a single-family or multi-family home. If the property is a single-family home, and the in-law suite is occupied by a relative, they are both covered under home insurance.<\/p>\n\n\n\n

If the property is deemed a multi-family house, it\u2019s likely that, although the building structure will be covered, anything inside won\u2019t be. For this reason, we encourage in-law occupants to have renters insurance (even if they aren\u2019t paying rent). This insurance covers their property and valuables and provides them with personal liability coverage.<\/p>\n\n\n\n

Factors that influence a insurers decision include whether:<\/p>\n\n\n\n