How to Properly Insure Your Accessory Dwelling Unit
Accessory Dwelling Units (ADUs) are booming across Orange County — from backyard units in Anaheim to garage conversions in Santa Ana and Irvine.
👉 But here’s the issue:
Most homeowners don’t have the right insurance setup.
If your ADU isn’t insured properly…
👉 Claims can be denied.
❓ What is an ADU?
An ADU (Accessory Dwelling Unit) is a:
- Secondary living space on your property
- Separate entrance and living area
Examples include:
- Backyard homes
- Garage conversions
- In-law units
👉 Very common in Orange County due to rising housing costs
⚠️ Why ADU Insurance is Different
Your standard home insurance may NOT fully cover your ADU.
Especially if:
- It’s detached from the main home
- It’s being rented out
- It was recently built or remodeled
👉 You must update your policy — don’t assume it’s covered.
🛡 How to Properly Insure an ADU
🏠 1. Update Your Home Insurance Policy
Let your insurance company know about the ADU.
👉 They may:
- Increase your dwelling coverage
- Add “other structures” coverage
- Adjust replacement cost
💰 2. Add Rental Coverage (If Renting)
If you rent out your ADU:
👉 You need:
- Landlord insurance
- Loss of rental income coverage
🏚 3. Separate Structure Coverage
For detached ADUs:
👉 Make sure you have enough coverage to:
- Fully rebuild the unit
- Cover materials + labor (important in OC)
⚖️ 4. Increase Liability Protection
If a tenant or guest gets hurt:
👉 You could be sued
We recommend:
- Higher liability limits
- Umbrella policy for extra protection
💰 How Much Does ADU Insurance Cost?
In Orange County, CA:
- Adding ADU coverage: $200 – $800/year (average)
- Rental ADU: higher depending on usage
👉 Cost depends on:
- Size of the ADU
- Rental vs personal use
- Property value
🚨 Common Mistakes Homeowners Make
❌ Not telling their insurance company about the ADU
❌ Renting it out without landlord coverage
❌ Underinsuring the structure
❌ Assuming it’s automatically covered
👉 These mistakes can lead to denied claims
🔥 Real Risks in Orange County
- Fire risk
- Water damage
- Tenant liability
- Construction-related issues
👉 Proper coverage protects your investment.
📍 Serving All Orange County, CA
We help homeowners in:
- Irvine
- Santa Ana
- Anaheim
- Westminster
- Huntington Beach
- Costa Mesa
- Fullerton
👉 And all surrounding areas
✅ Why Work With Starwest Insurance?
✔ No broker fees
✔ Multiple carriers (better pricing)
✔ ADU + landlord expertise
✔ Fast same-day quotes
👉 We make sure your coverage is set up correctly from the start.
📲 Get an ADU Insurance Quote Today
Don’t leave your ADU unprotected.
Text me at 714-231-0897 or call the office 714-893-7271
👉 Fast quotes
👉 Proper coverage
👉 Local experts