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.
Important distinction: Hard-wired or built-in appliances such as ovens, cooktops, and ducted rangehoods are typically covered under building insurance, not contents. The same applies to fixed floor coverings like tiles, glued timber, and floating floors. Carpets, however, are almost always classified as contents even when laid wall-to-wall.
A note on split-system air conditioners: These units sit in a grey area. Ducted air conditioning systems are generally covered under building insurance, but split-system units can be classified as either building or contents depending on the insurer. If you have split-systems installed, clarify their classification with your insurer to avoid surprises at claim time.
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.
Example: A burst pipe floods three units in your block. Your building policy covers the pipe repair, any damage to plasterwork, and the tiled flooring in wet areas. However, the carpet laid over concrete in each living area is not structural. Without contents cover, you pay for replacement out of pocket. Across three units, this could exceed $12,000.
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.
Pro tip: Ask your insurer about automatic contents cover. Some policies automatically include a base level of landlord contents, which may already provide enough protection for unfurnished units with minimal fixtures.
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:
- Water damage: Carpets and curtains ruined by leaks or flooding.
- Fire or smoke: Blinds, light fittings, and soft furnishings destroyed or damaged beyond repair.
- Malicious damage by tenants: Deliberate damage to fixtures and fittings.
- Storm damage: Water ingress affecting carpets and window furnishings.
Even a modest contents policy provides a buffer against these out of pocket expenses.
Real-World Scenario
The Kitchen Fire Claim
An owner of a four-unit block assumed building insurance covered everything inside the property. When a kitchen fire in one unit spread smoke damage throughout, the building policy covered structural repairs, repainting, and the built-in oven.
However, the carpets, curtains, and light fittings across all four units, totalling $22,000 in replacement costs, were declined. The owner had no contents cover and absorbed the entire loss.
A contents policy with $15,000 per unit would have covered the claim in full.
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.
Related information
- Block of Units Building Insurance — Learn what building insurance covers and why landlord insurance isn't enough.
- Non-Strata Insurance — Overview of insurance options for single-title multi-dwelling properties.