Finding an insurer that will insure a Block of Units can be challenging if you don’t know where to look. Fortunately, Morgan Insurance Brokers has a panel of Australian-approved insurers that will offer comprehensive insurance to protect your Block of Units. We will approach the market on your behalf and negotiate an insurance policy that is comprehensive and also affordable.

Who should insure a Block of Units?

Standardly, if you are insuring a Block of Units, you will be the single owner of the property. If there are separate owners of the units within the building, this would be considered strata insurance.

What insurance do I need?

When insuring your Block of Units, there’s a few things you should consider insuring.

Building – Insuring your building for replacement value is the most crucial part of insurance when you’re considering insuring your Block of Units.

Block of Units Insurance can protect you against events such as:

• Fire, including bush fire and arson
• Storm damage, including rain, hail, and wind
• Water damage from burst or leaking pipes,
• including overflowing
• Cyclone
• Flood,
• Impact damage, including from trees and vehicles

Tip – you may see building sum insured calculators for residential homes available, but these can not accurately calculate the cost to rebuild a block of units. We recommend engaging a professional builder, Valuer, architect, engineer, or other suitable qualified person to determine an adequate figure.

Contents/Fixtures and fittings General contents items, and Fixtures and fittings such as curtains, carpets, and blinds are not automatically covered when insuring your Block of Units. You should consider the cost of these per unit and ensure that your policy reflects this.

Public Liability Insurance

Public Liability Insurance is usually automatically insured under a Block of Units insurance policy. Public Liability under this policy is designed to protect the property owner for their responsibilities to their tenants. Third party personal Injury and Property Damage that you are found negligent for will be covered under this section.

Optional covers

When insuring a Block of Units, there are many additional layers of cover that you can consider insuring depending on how risk-averse you are, and what fits within your budget.

Loss of Rent Insurance

Loss of Rent cover can protect your annual rental income if your Block of Units were to be deemed uninhabitable by the insurer. It can look to reimburse you for the lost rent whilst your property was to be repaired or rebuilt after an insured event.

Rent Default

Rent Default insurance can protect your rental income if your tenant stops paying rent without providing written or verbal notice. It can protect your rental income from the date your tenant stopped paying rent until the date you secure a new tenant. Your tenant must have a rental agreement in force to be able to claim on this cover.

Theft by Tenant

If your property is furnished, Theft by Tenant cover is going to protect your items from theft by Tenant.

Accidental Damage by Tenant

Accidental Damage cover is not available with all insurers. It will cover damages to the building caused by the tenants, or their visitors. As accidents happen all the time, this cover is important to consider so be sure to read the terms and conditions of your policy.

Malicious Damage

Malicious Damage by your tenants or their guests is an important cover if you have tenants. It is standardly included under a Block of Units insurance policy.

How to obtain a quote for your Block of Units

Engaging Morgan Insurance Brokers to approach the market on your behalf is the first step to obtaining a comprehensive policy to protect your assets. We can source cover that will provide you peace of mind that in the event of an insurance claim, you’ll have a qualified insurance broker to manage your claim for the best outcome.