We study the formation of localized shocks in one-dimensional driven diffusive systems with spatially homogeneous creation and annihilation of particles (Langmuir kinetics). We show how to obtain hydrodynamic equations that describe the density profile in systems with uncorrelated steady state as well as in those exhibiting correlations. As a special example of the latter case, the Katz-Lebowitz-Spohn model is considered. The existence of a localized double density shock is demonstrated in one-dimensional driven diffusive systems. This corresponds to phase separation into regimes of three distinct densities, separated by localized domain walls. Our analytical approach is supported by Monte Carlo simulations.