CONTENTS INSURANCE GUIDE
Block of Units Contents Insurance
Carpets, curtains, blinds, light fittings and shared appliances sit outside most building policies - landlord contents cover is what picks them up.
Premiums and outcomes described are specific to this client and indicative only. Your own terms will depend on your circumstances and the insurer.
Do I need contents insurance if I own a block of units?
Yes. Landlord contents insurance covers items you provide for tenant use that are not part of the building's structure. In a block of units, this specifically protects carpets, curtains, blinds, light fittings, and shared appliances in common laundries or foyers. Building insurance typically excludes these items, leaving a gap many owners only discover at claim time.
What does landlord contents actually cover?
Many owners assume "contents" only applies if they furnish units with beds, sofas, or whitegoods. This is a common misconception. Landlord contents extends to:
| Item Type | Examples |
|---|---|
| Floor coverings | Carpets (including wall-to-wall), rugs |
| Window furnishings | Curtains, blinds, plantation shutters |
| Plug-in appliances | Dishwashers, washing machines, dryers, fridges |
| Light fittings | Pendant lights, ceiling fans with lights |
| Common area items | Shared washing machines, dryers, vacuum cleaners, foyer furniture |
If you have installed or provided any of these items, they fall under contents, not building.
Why do building policies exclude these items?
Building insurance covers the permanent structure: walls, roof, fixed plumbing, electrical wiring, and hard-wired appliances. Items that can be removed or replaced without structural work are classified as contents. This distinction catches owners off guard when a claim is lodged.
How much contents cover do I need for a block of units?
For unfurnished units where you have only provided standard fixtures and fittings, we typically suggest $10,000 to $20,000 per unit as a starting point. This accounts for 2026 replacement costs under "New for Old" policy terms and covers:
- Replacement of carpets
- Window furnishings
- Light fittings
- Any plug-in appliances included in the tenancy
To put this in perspective: replacing quality carpet and curtains in a two-bedroom unit alone can exceed $8,000 to $10,000 at current prices. A sum insured of $5,000 would fall well short in most claim scenarios.
If your block has a common laundry with appliances or furnished common areas, factor these into your total sum insured as well.
The right amount depends on what you have actually provided. A quick inventory of each unit and shared space helps you arrive at an accurate figure.
What happens if I skip contents cover entirely?
You bear the full replacement cost for any item not covered under your building policy. Common scenarios where this creates problems:
Even a modest contents policy provides a buffer against these out of pocket expenses.
Want your contents sum insured sense-checked?
Tell us what you've provided in the units and common areas - we'll tell you whether the figure holds up.
How do I add contents cover to my block of units policy?
Contents cover can be added to most block of units insurance policies as an optional section. When requesting a quote, specify:
- The number of units
- Whether units are furnished or unfurnished
- An estimate of the value of carpets, window furnishings, light fittings, and plug-in appliances per unit
- Any contents in common areas
- Whether you have split-system air conditioners (and confirm how your insurer classifies them)
This ensures your sum insured reflects actual replacement costs.
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Need contents cover for your block?
We can help you add the right level of contents protection to your block of units policy.