ADU insurance for how the unit is used.
Accessory dwelling units and guest houses, insured while they're built and after, whether family lives there, you rent it long term or you host guests.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed October 2026 · How this page is researched
An ADU can outgrow your homeowners policy
A homeowners policy usually covers detached structures under an "other structures" limit set as a share of the main home's coverage. A finished ADU can be worth more than that limit.
How the unit is used matters too. Renting it to a tenant or to short-term guests can call for landlord or rental coverage. I match the coverage to the unit and its use.
- While it's builtBuilder's risk for the structure and materials during construction.
- Family living thereEnough other-structures or dwelling coverage for the unit's rebuild cost.
- Rented long termLandlord coverage with liability and loss of rents.
- Rented short termCoverage that names short-term rental use.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- The unit: detached, attached or converted garage, and square footage.
- Stage: planned, under construction or finished.
- Use: family, long-term tenant or short-term guests.
- Build cost: contract amount or estimate.
- Current policy: declarations page for the main home.
- Timing: construction start or completion date.
ADU insurance, answered
Does homeowners insurance cover an ADU?
Usually under an other-structures limit, which is often a share of the main home's dwelling coverage. If the ADU is worth more, that limit can fall short. Some carriers can add the ADU with its own coverage amount.
Do I need builder's risk to build an ADU?
Often, yes. Your homeowners policy may not cover the structure and materials while they're being built, and lenders or contractors may require builder's risk.
What if I rent my ADU?
Renting it to a tenant can call for landlord coverage for that unit, and renting to short-term guests can call for a policy that names short-term rental use.
Does my tenant need insurance?
Your policy doesn't cover a tenant's belongings. Many landlords require renters insurance in the lease.
Do you offer ADU insurance outside California?
Yes. Clients across the country send the same quote form. California policies are placed directly; outside California the request is handled together with a partner agency in your state, and the shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state or high-value home insurance by state.
Tell me about the unit. I'll match the coverage.
The address, the unit's size and how it's used are enough to start.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.
Tell me how to reach you. I’ll take it from there.
Takes about 30 seconds. I review every request personally and call you back, usually the same day.
(424) 552-4545Answered 24/7 · CA License #4348151
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Tell me when your policy renews and I’ll email you about six weeks before, when it’s worth comparing. One email, no calls.