How to Properly Insure Your Accessory Dwelling Unit
Accessory Dwelling Units (ADUs) are exploding in Los Angeles — from backyard units to garage conversions.
👉 But here’s the problem:
Most homeowners don’t know how to insure them correctly.
And if it’s not set up right…
👉 Claims can be denied.
❓ What is an ADU?
An ADU (Accessory Dwelling Unit) is:
- A secondary housing unit on your property
- Examples include:
- Backyard homes
- Garage conversions
- Basement apartments
👉 Common in Los Angeles due to housing demand
⚠️ Why ADU Insurance is Different
Your standard home insurance may NOT fully cover your ADU.
👉 Especially if:
- It’s rented out
- It was recently built
- It’s detached from the main home
🛡 How to Properly Insure an ADU
🏠 1. Update Your Home Insurance Policy
You must notify your insurance company if you have an ADU.
👉 They may:
- Increase your dwelling coverage
- Add a separate structure endorsement
💰 2. Add Rental Coverage (If Applicable)
If you rent out your ADU:
👉 You need:
- Landlord coverage
- Loss of rental income protection
🏚 3. Separate Structure Coverage
For detached ADUs:
👉 Make sure you have enough coverage for:
- Full rebuild cost
- Materials + labor
⚖️ 4. Liability Protection
This is HUGE.
If a tenant or guest gets injured:
👉 You could be sued
Make sure you have:
- High liability limits
- Umbrella policy (recommended)
💰 How Much Does ADU Insurance Cost?
In Los Angeles, CA:
- Adding ADU coverage: $200 – $800/year extra (average)
- Rental ADU: higher depending on risk
👉 Cost depends on:
- Size of ADU
- Rental status
- Property value
🚨 Common Mistakes Homeowners Make
❌ Not telling their insurance company
❌ Underinsuring the ADU
❌ Renting it out without landlord coverage
❌ Assuming it’s automatically covered
👉 These mistakes can lead to claim denial
🔥 Real Risks in Los Angeles
- Fire risk (especially older builds)
- Liability from tenants
- Water damage claims
- Legal exposure
👉 Proper coverage protects your investment
📍 Local Expertise Matters
Los Angeles has unique rules for:
- ADU permits
- Zoning
- Rental use
👉 We make sure your insurance matches your actual situation.
✅ Why Work With Starwest Insurance?
✔ No broker fees
✔ Multiple carriers (more options)
✔ ADU + landlord expertise
✔ Fast quotes
👉 We help you structure it the RIGHT way
📲 Get an ADU Insurance Quote Today
Don’t risk your property.
Text me at 714-231-0897 or call the office 714-893-7271
👉 Fast quotes
👉 Proper coverage
👉 Local experts