Insuring a Block of Units in Australia: What You Need to Know
In this blog, we’ll explore:
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Why block-of-units insurance is harder to secure today
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The risks of inadequate coverage
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How Morgan Insurance Brokers approach can provide a better solution
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Practical advice for landlords, especially self-managed ones
Why Major Insurers Are Withdrawing or Restricting Coverage
Rising risk, increasing losses, and underwriting pressure
Australia has seen a rise in extreme weather events, inflation in rebuilding costs, supply chain pressures and growing claims severity. The insurance industry has responded by tightening underwriting and reassessing which property risks are sustainable to insure.
Because blocks of units represent aggregated risk (a single event such as a fire, storm, water damage etc, can affect multiple tenancies at once), insurers are more cautious. In some cases, insurers may decline to quote new policies or withdraw from offering cover altogether.
Anecdotal reports of insurers opting out of block insurance
In property forums and discussions, some landlords have reported that insurers like NRMA and RACQ have ceased insuring blocks of units owned by single owners (i.e. non-strata blocks). For example:
“We’ve just found out that NRMA will no longer insure blocks of units that are owned by a single owner and that aren’t strata-ed. … It looks like slim pickings for insurers who insure this type of property.” (PropertyChat)
While such reports are not always publicly confirmed by the insurer, they reflect a reality: for certain high-risk or complicated multi-unit configurations, insureds are seeing fewer options.
Insurers dropping some product lines
In broader insurance markets, some insurers have publicly announced that they will no longer offer certain personal lines (e.g. home, landlord) for new business.
So, for many owners of blocks of units, especially non-strata blocks, finding an insurer willing to quote can be challenging. That’s where a broker with access to specialist markets becomes crucial.
The Risks of Being Underinsured or Uninsured
If your block of units is not properly insured, you could face:
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Rebuilding or repair costs after fire, storm, water damage, etc., which can run into the hundreds of thousands (or more)
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Loss of rental income if the property becomes uninhabitable during repair
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Liability claims (slip/trip, injury on premises)
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Tenant damage or malicious damage (if tenants or their visitors damage common walls, structures, or interiors)
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Rent default or non-payment risks if tenants stop paying during repair works or due to insurance issues
Given that insurers are less eager to cover multi-unit risks, going without appropriate coverage—or settling for narrow or inadequate cover—can leave you severely exposed.
Morgan Insurance’s Solution: One Policy, Flexible Options
Morgan Insurance Brokers offers a model tailored to block-of-units owners that addresses many of the pitfalls in today’s market.
1. One comprehensive policy covering multiple risks
Instead of patching together separate policies (building, landlord, public liability etc.), Morgan Insurance Brokers can source a single policy that can incorporate:
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Building / structural cover
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Landlord cover (for tenant-related risks)
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Public liability
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Optional covers (loss of rent, tenant damage, rent default, etc.)
2. Competitive pricing via broad panel access
Because Morgan can access a panel of insurers, it can shop the risk across multiple underwriters, negotiate terms, and offer clients competitive pricing even in a tough underwriting environment.
3. Optional landlord covers
One valuable feature is that optional landlord covers are not mandatory. The policy can be tailored to remove some landlord related extras if you prefer (to reduce premium.
For example, you might choose not to include rent default or theft-by-tenant coverage if you believe your tenants are low risk, or wish to reserve that cover for only certain units, but you retain the flexibility to include them if needed.
4. Claims handling by Morgan Insurance Brokers
Having a broker manage claims can make a big difference during a stressful event. Morgan offers to take on claims handling responsibilities, helping with documentation, liaising with insurers, and advocating for a fair outcome.
5. Emphasis on solid supporting documentation
Morgan underscores the importance of:
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Having formal rental/tenancy agreements in place (so tenant-based claims like rent default or damage are valid)
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Inspection reports (especially for self-managed blocks) to document condition, pre-existing damage, maintenance issues, etc.
These pieces of documentation strengthen any claim and reduce insurer pushback.
Tips for Landlords (Especially Self-Managed Blocks)
Here are some practical tips to protect yourself and your investment:
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Use legally sound tenancy agreements
Ensure they clearly set out tenant obligations, damage responsibilities, and allow for entry/inspection rights. This is especially critical if you rely on rent default, tenant damage or malicious damage covers. -
Perform regular inspections and document them
Carry out periodic inspections (with photos, condition reports) so you have an evidentiary trail of property condition. This helps in claims disputes, or where damage is alleged. -
Engage professionals for valuation and rebuilding cost estimation
Rebuilding a block of units is a complex exercise; use qualified valuers, architects or quantity surveyors to estimate appropriate sums insured. -
Be selective with optional covers
Do you need rent default, theft by tenant, loss of rent, or accidental damage by tenant? Weigh the incremental premium cost vs risk. If your tenants are stable and you have strong screening, you might choose to forgo some optional covers — but only if you're willing to assume that risk. -
Maintain good maintenance & risk mitigation practices
Keep gutters cleaned, check plumbing, mitigate water ingress, maintain fire systems and safe access. Insurers often scrutinise upkeep in claims. -
Review your policy annually
As repair costs, materials or risks shift, make sure your sums insured and covers remain adequate.
Why Our Approach Stands Out
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Access to multiple insurers means you aren’t dependent on a single underwriter who may opt out of block-of-units risks
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Package structure avoids coverage gaps or overlaps
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Flexibility in optional landlord covers helps manage cost vs risk
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Broker-managed claims provides support and advocacy when you need it most
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Emphasis on documentation (agreements, inspections) increases claim defensibility
In a market where some major insurers are retreating from landlord or home lines (or excluding certain risks), having a broker partner with a wide panel and specialist block-of-units capability is a strong advantage.
Conclusion
If you own or manage a block of units in Australia, particularly a non-strata block, you’re operating in a more constrained insurance environment today. Many general insurers are reevaluating their exposure to multi-unit risks, making coverage harder and more expensive to obtain.
That’s why a broker model like Morgan Insurance Brokers, which consolidates multiple covers into one policy and leverages multiple insurer relationships, can make a real difference. You gain competitive pricing, flexibility to tailor landlord options, and claims support, without needing to juggle separate building and landlord policies yourself.
Why You Shouldn't Wait Until You're Sick or Injured to Get Income Protection Insurance
How much of a heads-up do you get before an illness or injury strikes? That’s why you need Income Protection Insurance for today, not tomorrow. You can’t predict when you need to claim your insurance, but you can be ready for it.
Your Income Protection Insurance is a financial cushion that should be in place before you need to claim it to ensure that you are effectively protected. You may be thinking, Why would I need coverage for something I don’t need to claim yet? The truth is, it is easier to believe that you can protect yourself and consider your options after an unexpected event occurs, but in the event of your illness or injury, it will be the last thing you want to do. We have options for you today, so don’t wait until it’s too late, as this may complicate your Insurance claim for several reasons.
Too Little, Too Late
Income Protection Insurance acts as a safety net to support you with any unprecedented events that may leave you financially vulnerable. Getting insured before you require the support means you will have access to lower-cost premiums and be eligible for wider cover. Pre-existing health conditions are subject to higher costs and may be excluded from your insurance coverage. Therefore, applying once you’re already ill or injured may affect the financial support that you’re eligible for. You may be risking having less of your income covered, which is the last thing you need when you’re trying to recover.
An estimated 31% of Australians currently have Income Protection Insurance, meaning that it is all too common for individuals to find themselves seeking cover after the fact. Our team of dedicated professionals at Morgan Insurance Brokers can tailor your coverage to your needs and provide you with professional advice to ensure you make the right decision for the safety of your livelihood.
Don’t Fall Behind on Payments
If you already have Income Protection Insurance in place, it is easier and quicker to claim. Getting protected beforehand means you have the appropriate time and capability to choose the most suitable waiting period. Waiting periods can be 30, 60 or 90 days and refer to the time required to wait until you can receive your insurance benefits.
Income Protection Insurance claims are generally approved within two months of the insurer receiving all the relevant information required to raise the case (if there are no further delays). After its approval, your waiting period terms will help you to understand when you can receive the first payment. By waiting until you ‘need’ your Income Protection Insurance to get covered, you are delaying this timeline further.
Whilst you are absent from work with your illness or injury, you may need to cover rent, utility bills or groceries. Getting insured earlier means that your repayments can be made to you after approval is made and your waiting period has been covered. Don’t fall behind on your payments; get insured before it’s too late.
Focus on Recovery
One of the most important factors to consider is your peace of mind. By having your Income Protection Insurance cover in place before you are in a position to claim it, you ensure your financial stability. There is nothing worse than falling ill or getting injured, and having to worry about how life will go on whilst you recover. Take this pressure off your shoulders by taking the necessary measures today.
The best thing you can do for yourself is focus on recovery. With Income Protection Insurance, you can rest assured that should you need to be absent from work and qualify to claim your cover, you will be financially protected.
Speak to our team today to understand how you can be confident that if life happens, you can afford the privilege of treatment and recovery.
Get Started with Morgan Insurance Brokers
If you’re not sure where to start or what coverage you need, you’ve come to the right place. You can get a quote from us today. Our team of expert professionals can advise you on the ideal coverage for your circumstances and ensure you understand how you will be protected.
We’re dedicated to ensuring your financial safety and stability. Start with us today.
How to Ensure Your Loved Ones Are Protected with Income Protection Insurance
When you have a family, protecting them is your every thought. There’s nothing scarier than imagining a scenario where you’re unable to provide for them financially, and the repercussions that could have. Don’t spiral. With Morgan Insurance Brokers by your side, you can choose an Income Protection Insurance policy that gives you and your family peace of mind.
Don’t wait for tomorrow to find out what happens if you come down with a severe flu that leaves you unable to work. Income Protection Insurance covers more than just your income. You can make smart decisions today that protect your family and livelihood. How does your cover extend to support your loved ones? Let’s break it down.
When would I need Income Protection Insurance?
Income Protection Insurance is your safety net when you can’t work due to an illness or injury. It usually pays around 70-90% of your regular income, so you can afford to recover and simultaneously cover essentials, like rent, bills and groceries. A common misconception is that you only need Income Protection Insurance for terminal illnesses, but this isn’t true and protecting yourself ahead of time is the only way to have your own back, as you can’t get income protection insurance once you’re injured or already suffering from an illness. So, when can income protection insurance help you?
- Cancer
- Mental Health Conditions
- Broken bones/ joint issues
- Vehicle Accidents
- Heart attack/ Stroke
You never know when it could be you. Having the right income protection insurance coverage for your needs is a safe way to protect your family and their well-being in the event of the worst happening. If you’re unprepared, you face having to cover essential (and other) costs out of your pocket, which can set you back financially, especially if your recovery time is unclear.
How does Income Protection Insurance help my family?
Providing for your family encompasses more than just financial support; it’s about being there for them physically and emotionally, too. This is best done when you’re fit and healthy. As Income Protection Insurance is decided based on your scenario and requirements, you can tailor your cover to ensure it covers exactly how much you need for you and your family to survive. If you’re the primary owner, being protected by Income Protection Insurance means you can feed your family and keep the house warm while you recover. Recovery should be your focus, and you don’t want to add any additional pressure by worrying about where your next paycheck will come from. When you’re suffering from an illness or injury, it’s likely to add pressure to your family in any case. So, financial certainty is the one thing you can guarantee and be in control of, with income protection insurance.
One way you can tailor your coverage to suit your requirements is through waiting and benefit periods. Waiting periods suggest the time you’ll need to wait before your payments can begin once you’ve been approved for a claim. You should consider how long you’ll be able to support yourself financially to determine a suitable waiting period for you and your family. Benefit periods are how long your payments will continue if you’re ill or injured, so understanding how likely you are to be out of work for a longer period is essential. By making informed decisions on both of these factors, you can get the most out of your income protection insurance and ensure you’re covered immediately and adequately.
For your loved ones, seeing you back on track is their priority. With income protection insurance, there are hidden benefits, such as rehabilitation support. Get back on your feet quicker when you access the support on offer, so your family can expect you back to normal in no time. There’s no price on peace of mind. Get covered today with Morgan Insurance Brokers, for you and your family’s sake.
More Than Just Insurance
At Morgan Insurance Brokers, we’re dedicated to providing you with tailored advice that ensures you benefit from your income protection insurance. We understand how important financial security is, especially when it comes to family. We won’t leave you in it alone. We provide continued support when you make a claim, so you know exactly what you need to do.
Contact us today for more information.
