Block of Units Insurance

It depends on the vacancy level and the insurer. Most policies include an unoccupancy clause that triggers after 60 to 90 days of total vacancy, but blocks of units are unique because they can be partially occupied.

Partial occupancy: Long-term vacancy across part of a block affects both appetite and premium. Most insurers get uncomfortable once vacancy sits above roughly 20-30%, but the threshold varies by insurer - there's no universal rule.

Renovation periods: If units are vacant due to renovation, this alters the risk profile and may require a "Works in Progress" notation or a separate Construction policy.

Important: Always notify us if occupancy levels drop significantly. Failure to disclose a change in the risk could prejudice a future claim.

No, standard building policies generally exclude malicious damage by tenants. A standard Block of Units policy covers the physical structure against events like fire, storm, and impact. It typically does not cover:

– Malicious Acts: A tenant smashing walls or doors.
– Rent Default: Loss of income if a tenant stops paying.

To be covered, it is generally recommended to arrange a policy that specifically includes Loss of Rent and Malicious Damage, or arrange separate Landlord Insurance policies for the individual units.

Tank Tip: We have access to specialised markets that bundle this together in one policy. For example, we work with an insurer that includes cover such as $70,000 contents as standard, simplifying the need for separate landlord policies.

Yes, but you need a specialised short-term rental policy. Most standard residential insurers exclude Airbnb and Stayz because they classify them as "business activities." However, we access specialised landlord insurers who explicitly cover short-term letting under a specific residential wording.

Liability Exposure: The biggest risk is Public Liability. If a paying guest slips and falls in the stairwell, a standard home and contents policy will likely decline the claim. A specialised policy ensures this commercial-style liability is covered.

Wear and Tear: Be aware that even specialised policies generally exclude "wear and tear" caused by high turnover, but they will cover malicious damage caused by guests.

Most standard residential policies exclude commercial activity, so any retail or commercial tenancy on the ground floor needs to be disclosed up front. That said, it doesn't automatically mean the building can't be insured on a residential policy.

Some residential insurers will still write the risk by endorsement once the underwriter reviews the residential-to-commercial ratio. When residential drops below 50% and commercial exceeds it, most mainstream markets decline and we refer into specialist underwriters. Depending on the mix, we'll place on a residential policy with a mixed-use endorsement, a commercial property policy, or an Industrial Special Risks policy.

High-risk tenants: The type of tenant matters. A florist presents a lower risk than a takeaway shop using deep fryers (high fire load).

Fire ratings: Commercial tenants may trigger different fire safety compliance requirements for the whole building.

Expert insight: Insurers assess occupancy ratios differently. The same building can get quoted by one market and declined by another based on how they weigh the commercial component. We know which markets have appetite for different ratios and what information to include in the submission.

Yes, they refer to the same type of cover. "Block of units" and "block of flats" are interchangeable terms for a multi-dwelling residential building under single ownership. "Block of units" is more commonly used in Australia, while "block of flats" appears in some regions and older documentation. Both require the same specialised insurance - a policy that covers the entire building structure, common areas, and public liability under one umbrella. Whether you search for block of units insurance, block of flats insurance, or multi-unit building insurance, you need the same product: a non-strata residential policy designed for single-title properties with multiple dwellings.