Making room for granny: Home insurance and accessory dwelling units – NU PropertyCasualty360

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“If you add an ADU to your property, you will need to add it to your coverage. That’s because your homeowners policy was designed with dwelling coverage limits based on the cost to rebuild the original home — not the home with the new granny flat,” says Angela Orbann, vice president for personal insurance at Travelers Insurance. Credit: moehong/Adobe stock

In a push to shore up housing stocks, municipalities across the country have loosened regulations around accessory dwelling units (ADU), colloquially known as granny flats or in-law suites.

New York City became the most recent city to toss support behind ADU construction. The city is now running a pilot program that offers residents in single-family homes up to $400,000 to offset the cost of adding a unit over the garage and in an expanded woodshed, PropertyCasualty360.com sister site GlobeSt.com reported.

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