Block of Units Insurance
Protect your property investments with Landlord Insurance from our experienced brokers. We provide tailored coverage and expert advice to suit your unique needs.
One building. Multiple units. One policy.
A block of units building policy covers the entire structure and common areas of a multi-unit residential property owned under a single title — protecting your investment from fire, storm, flood, liability claims, and more, without needing a separate policy for each unit.
Building insurance for the whole block
A block of units policy covers the structure, roof, walls, common area fixtures, stairwells, driveways, and shared facilities of the entire building under a single policy — regardless of how many units are in the block or how they are occupied.
Single-title residential investment properties
This policy is specifically for residential blocks owned under a single title by one owner — where the whole building and all units belong to the same person or entity and are not individually strata-titled.
Not sure whether you need a block of units policy or strata insurance? The difference comes down to your title structure. We can confirm the right cover type for your property in minutes.
Get a quoteBlock of units insurance — what type of property do you own?
Block of units insurance covers the building structure and common areas of a multi-unit residential property owned under a single title. The right policy structure depends on how the property is used, who lives in it, and how the individual units are occupied. Here is how cover applies to the most common block of units ownership scenarios.
Owner-occupied units in a mixed block
Some units owner-occupied, others rented out
If you own a block where some units are occupied by the owners themselves and others are rented out to tenants, a single block of units building policy covers the structure and common areas across the whole property under one policy. This is the most cost-efficient approach rather than attempting to insure each unit separately.
However, it is important to understand what the building policy does not cover. Each owner-occupier's personal contents are not included in the building policy. Individual owners need their own separate home and contents insurance policy to cover their furniture, appliances, clothing, and personal belongings inside their own unit.
Airbnb and short-stay units
Holiday lettings, Airbnb and Stayz
If one or more units in your block are listed on Airbnb, Stayz, or any other short-stay platform, the risk profile of those units is materially different to a standard long-term tenancy. Most standard block of units and landlord policies are written for long-term residential tenancies and do not automatically extend cover to short-stay or holiday rental arrangements.
Short-stay guests create higher turnover, higher wear and liability exposure, and a different risk of property damage than long-term tenants. If you are operating short-stay rentals from units in your block, the policy wording must specifically confirm cover for this use or you may find a claim relating to a short-stay guest is declined.
Long-term rental units
All units tenanted on standard residential leases
A block of units where all units are rented out on standard residential leases is the most straightforward scenario for insurance. The building policy covers the structure and common areas, and a landlord insurance policy can be added to cover optional extras including loss of rent following an insured event, rent default if a tenant stops paying, and theft by tenant of fixtures and fittings.
For investors who rely on rental income from the block to service a mortgage or generate returns, loss of rent and rent default cover are worth discussing with a broker. A single unit becoming uninhabitable or a defaulting tenant can materially affect your cash flow in ways a standard building policy does not address.
Non-strata block of units
Entire block owned under one title by one owner
A non-strata block of units is a property where the entire building, including all units and common areas, is owned by a single owner under one title. This is the scenario block of units insurance is specifically designed for. The whole building is insured under one policy, covering the structure, common areas, landlord liability, and any optional rental income protections across all units simultaneously.
This is distinct from a strata-titled property, where each unit is separately owned and the owners corporation holds the strata insurance. If your block is not strata titled, you need a block of units policy, not a strata policy, and the building insurance obligation rests entirely with you as the sole owner rather than being shared among lot owners.
Strata-titled properties
Each unit has its own individual title
If your units are strata-titled, meaning each unit has its own individual certificate of title and the property has an owners corporation or body corporate, you are in a different insurance category entirely. A block of units policy does not apply to strata-titled properties.
Strata-titled buildings require a strata insurance policy arranged by the owners corporation, which covers the building and common property on behalf of all lot owners. Individual lot owners may still need their own contents insurance for belongings inside their unit, and landlord insurance if they are renting their lot out to tenants.
What does block of units insurance cover?
A block of units building policy provides protection for the physical structure of your property and the legal liabilities that come with owning a multi-unit residential building. Here are the three core areas of cover included in most block of units policies.
Fire and accidental damage
Bushfire, grassfire, arson and accidental events
Fire is one of the most destructive and financially significant events that can affect a residential building. A block of units building policy covers damage caused by bushfire, grassfire, accidental fires, and arson, protecting the structural integrity of the whole building including roof, walls, floors, stairwells, and common areas.
Without adequate building insurance, a fire event affecting a block of units could result in repair or rebuild costs running into hundreds of thousands of dollars. The sum insured should reflect the full cost of demolishing and rebuilding the entire structure at current construction rates, not the property's market value.
Storm damage and flood
Heavy rain, hail, strong winds and flooding
Storm damage is the most common claim made under any property insurance policy in Australia. Heavy rain, hailstorms, strong winds, and lightning strikes can cause significant structural damage to a block of units, including roof damage, broken windows, water ingress, and damage to common area infrastructure such as gutters, drainage, and external structures.
Flood cover is typically included in a block of units policy unless a specific flood exclusion endorsement has been added. Properties in high-risk flood zones may have flood excluded or priced separately. A broker confirms whether flood is included in your specific policy and can negotiate with insurers on your behalf if your property is in an affected postcode.
Injury to tenants and visitors
Public liability for your legal exposure as owner
As the owner of a block of units, you have a legal duty of care to the people who live in, visit, or pass through your property. Public liability cover protects you from compensation claims and legal defence costs arising from personal injury or property damage suffered by tenants, their visitors, or members of the public on your property.
A slip and fall in a common area stairwell, an injury from faulty common area equipment, or damage caused to a neighbour's property by a structural defect are all scenarios where public liability responds. Most public liability limits for residential investment properties start at $10 million and should reflect the number of units and the level of foot traffic through common areas.
Block of units insurance — optional covers worth knowing about
A standard block of units building policy covers the structure against fire, storm, flood, and accidental damage. But for investors and property owners who rely on rental income, there are three additional covers that can make a material difference when something goes wrong with a tenant or an insured event renders a unit uninhabitable.
Loss of rent
After storm, fire, or another insurable event
If one or more units in your block is damaged by an insured event, such as fire, storm, flood, or another covered cause, and is deemed uninhabitable as a result, loss of rent cover replaces the rental income you would have received during the period the unit cannot be occupied.
For owners of blocks of units, where rental income may be the primary return on a significant investment, a single serious event affecting multiple units can create a substantial income gap. Loss of rent cover bridges that gap, covering your rental income while repairs are carried out and the units are restored to a habitable condition.
Rent default
If a tenant stops paying without notice
Rent default cover protects you if a tenant stops paying rent without giving proper notice and vacates the property, leaving you with an unoccupied unit and unpaid rent. For block of units owners, a single defaulting tenant can create an immediate cash flow problem, particularly where the rental income is servicing a mortgage or loan against the property.
This cover is distinct from loss of rent following an insurable event. Rent default responds to tenant behaviour rather than physical damage to the property. It is typically available as an optional extension to a landlord insurance policy and covers a specified number of weeks of lost rent while the unit is vacant and the tenancy matter is being resolved.
Theft by tenant
Of contents, fixtures, or fittings
Standard building and contents policies cover theft by an external party forcing entry, but many explicitly exclude theft committed by the tenant who has lawful access to the property. Theft by tenant cover specifically addresses this gap, covering the cost of replacing contents, fixtures, and fittings that a tenant deliberately removes or damages when vacating.
This can include appliances, blinds, light fittings, cabinet hardware, tapware, and other fixtures and fittings that a departing tenant has taken or deliberately removed from the property. For blocks of units where the same fixtures are installed across multiple units, the cost of replacement across an entire building can be significant.
What is typically not covered under Block of Units Insurance?
War
Old Age
Wear and Tear
Action of the sea
If the property is vacant
Mould - poor ventilation
Bird, Insect, Rodent Damage
Pre-existing damages
Ready to protect your block of units?
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