Block of Units
Insurance.

Block of units insurance is designed to cover a residential building with more than one dwelling held on a single non-strata title, from a duplex or triplex up to a larger block. It brings the building structure, common areas and the owner's liability together under one policy.

Block of units insurance does not cover tenants' personal contents. Wear and tear and gradual deterioration are generally excluded. Rent default claims commonly require a formal tenancy agreement to have been in place and the appropriate tenancy authority process to have been followed. Intentional damage by the owner is also excluded. Conditions and exclusions vary by policy.

There is no general law requiring owners of non-strata blocks to hold block of units insurance in Australia. Lenders may require building insurance as a condition of a commercial or investment property mortgage. Requirements vary by lender and loan structure.

Largely yes. Both terms are used in the Australian market to describe insurance for a non-strata residential building with more than one dwelling under a single title, and different insurers and brokers favour one term or the other. Get in touch and we can help identify the right policy and insurer for your specific building, whichever term you have seen used.

Strata insurance covers a building that is strata titled, where individual owners hold title to their lots and an owners corporation arranges and manages a collective building policy. Block of units insurance covers a building where a single owner holds the entire non-strata title and rents the individual dwellings to separate tenants. If your building is strata titled, the owners corporation is typically responsible for arranging strata insurance. If you own the whole building outright on one title, a block of units policy is generally the appropriate cover.

The cost of block of units insurance varies widely depending on the number of dwellings, the total building sum insured, the property location and construction and the scope of cover selected. A duplex or triplex can generally attract premiums from around $1,500 to $4,000 per year. Larger blocks with a building sum insured of $3 million or more can generally attract premiums from around $10,000 to $30,000 per year. These are general market ranges only. An accurate premium requires an underwriter assessment of your specific property.

Claims on a block of units can be significantly larger than on a single dwelling because a single event can affect every tenancy simultaneously. A fire or storm event that damages common structural elements may render the entire building uninhabitable, resulting in a large loss of rent claim across every tenancy combined with a substantial building repair cost. An uninsured claim of this nature could run into the millions for a larger building.

The policy structure is generally similar across a duplex, triplex or larger block. The main differences are the building sum insured, the premium and which insurers have appetite for the specific size and profile of the building. Get in touch and we can find suitable options regardless of how many dwellings are on the one title.

A non-strata unit block is a residential building with more than one dwelling, held under a single title and owned outright by one person, company or trust, rather than divided into separately titled lots under a strata plan. This includes company title buildings, where occupation rights sit with shares, and Torrens title buildings held on one registered title.

Block of units policies generally include cover for common areas such as stairwells, driveways and car parks as part of the building cover. What is and is not included varies by policy. Get in touch and we can confirm what applies for your specific property.

A block of units policy with a loss of rent extension can generally respond to lost rental income across affected tenancies when the property becomes uninhabitable following a covered event. The policy typically responds based on the fair rental value of the affected dwellings and is subject to an indemnity period and a total limit. The conditions and limits vary by policy.

Insurers typically ask for the property address, type and year of construction, the number of dwellings, the total building sum insured, current tenancy arrangements and annual rental income, whether loss of rent and rent default cover is required, any recent claims or insurer decisions and any lender requirements. When you get in touch, we will guide you through what we need and present your risk to our specialist panel.

Notify us as soon as possible after an incident. Document the damage thoroughly across all affected areas and dwellings with photographs. For tenant damage, retain the relevant tenancy documents for each affected tenancy. For loss of rent, document the rental income for each affected dwelling and the expected repair timeline. We will be actively involved throughout the claims process.

A decline or non-renewal from a mainstream insurer does not mean cover is unavailable. We have access to specialist underwriters that actively write non-strata block risks. Get in touch and we can identify underwriters with genuine appetite for your property type and risk profile.