If your property includes an attached guesthouse, the company that issues your homeowner's insurance likely covers it. However, if the guesthouse is unattached, you may need to purchase a rider through the homeowner’s insurance carrier, according to Allstate. If you rent the guesthouse structure to tenants, it is necessary to purchase rental insurance through a company specializing in the service, recommends the American Institute of CPAs.
Dwelling coverage or insurance is the part of the homeowner's policy that covers the repair or rebuilding of the structure in which you live if the damage is due to a covered hazard, reports Allstate. Dwelling coverage extends beyond the part of the house in which you live, insuring attached structures, such as garages, storage areas and guesthouses. However, if these same structures are not connected, they require additional coverage, often available at an extra cost through the homeowner's policy.
Policies also generally cover the related or employed people who live or work in the dwelling, as well as invited guests, according to the American Institute of CPAs. However, you should contact the carrier at the time you purchase the policy to verify what is covered. The policy does not cover trespassers or tenants. The tenant must purchase renter's insurance to cover his personal belongs, through a carrier who offers such coverage.