How do I insure a minor-dwelling?

This question is from Mel:

I own a property (freehold house) with a separate garage that has been legally converted to a minor dwelling (50 sqm). Both are tenanted. Can I insure both properties under one policy, or do they need their own insurance policies?

Rene from Initio Insurance says

Here’s a quick answer. This is our approach at Initio.

If the 2 (the main house and the minor dwelling) are in some way connected (e.g. under the same roof, by the carport, a deck), then it can be insured under a single policy – as a multi-unit. If they are separate (even on the same property), they will need to be insured as two separate rental properties (which will be a little more expensive). We have leniency to insure a multi-unit where the two are very close together (i.e. within 3 metres).

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