How Much Does Block of Units Insurance Cost?

Block of units insurance isn't priced on a simple rate card. Premium depends on unit count, location, construction type, sum insured, claims history, and the mix of tenants in the building.

The ranges on this page come from Tank's actual placements across NSW, QLD, WA, VIC, SA and TAS. Every figure is drawn from real policies bound for real property owners - not insurer brochures or industry averages. Our portfolio average sits around $4,800 annually, with most placements landing between $2,000 and $10,000.

These figures are directional - drawn from Tank's block of units placements plus broker market experience, not strict per-deal statistics. Individual placements will sit above or below these ranges depending on the property's specific risk profile.

What you'll typically pay:

• Small regional blocks (2–4 units): roughly $2,000 to $4,500 a year
• Coastal regional blocks: roughly $2,800 to $5,500 a year
• Metro Sydney (inner/west): roughly $3,500 to $7,500 a year
• Metro Sydney (eastern/coastal): roughly $4,500 to $14,000 a year
• Metro Melbourne, Brisbane, Adelaide, Perth: roughly $3,000 to $8,500 a year
• Queensland coastal with cyclone + flood: roughly $3,000 to $7,500 a year
• WA / regional (non-coastal): roughly $2,200 to $5,500 a year
• Bushfire-zone or high-risk exposure (any state): $5,500 to $20,000+ a year

These are annual premium ranges - before GST and brokerage - for standard block of units cover including building, public liability and loss of rent. Higher-risk configurations (very large blocks, multiple prior claims, or overlapping flood/bushfire zones) can sit outside these ranges.

Location is the single biggest premium driver for block of units insurance. The chart below shows typical annual premium ranges we've placed across nine location types spanning every mainland state plus Tasmania - with the median line marking where most placements cluster.

Two things to note: postcode-level variation inside each band is wide (a Coffs Harbour block and a Wollongong block can both be "Coastal NSW" but price differently), and the bushfire-zone band can stretch beyond the upper figure for blocks with multiple prior claims or large sums insured.

Per-unit premium drops as block size grows. Larger blocks carry more total risk but each unit costs less to insure because the fixed overhead (liability, claims handling, infrastructure cover) is spread across more dwellings.

To translate per-unit into total annual premium: multiply the typical figure by unit count, then apply a location loading if applicable. A 6-unit block in Metro Sydney inner/west would typically start from about 6 × $950 = $5,700, with coastal or eastern-suburbs loadings pushing that upward.

Most property owners don't realise how different the insurer panel is for block of units compared to single-dwelling landlord cover. Online portals and direct insurers write almost no non-strata block business - the market is dominated by underwriting agencies and specialist commercial residential insurers.

The insurer that quotes cheapest isn't always the right answer. Cover wording, flood sub-limits, cyclone excess, and loss of rent caps can differ dramatically between markets on the same building. We compare wording alongside premium on every quote.

Insurer availability and appetite change regularly. These weightings reflect Tank's recent placement mix and may shift as markets adjust. Past placements don't guarantee future terms from the same insurer.

These are the six factors we see move block of units premiums most often. Every insurer weighs them differently based on their appetite, so the mix matters.

1. Unit count and building size

More units means more risk, but also more premium spread across a larger base. Most mainstream insurers stop writing once a block exceeds four units - anything five and above usually needs a specialist underwriter on manual terms. Very large blocks (16+) tend to attract stricter underwriting regardless of market.

2. Location and natural hazard exposure

Bushfire zones, cyclone ratings, flood overlays and coastal proximity all feed directly into pricing. A 6-unit block in regional NSW and a 6-unit block in coastal Queensland with flood mapping can differ by 2-3x on premium for the same sum insured.

3. Construction type and age

Brick and tile blocks built 1980-2010 are the sweet spot for most insurers. Older buildings with aluminium or copper wiring, untreated asbestos, or cladding issues attract higher premiums. Newer luxury builds with elaborate common areas can also price higher due to replacement cost.

4. Sum insured (replacement cost)

This is the foundation of the premium calculation. It's not market value - it's what it would cost to rebuild the block from scratch including demolition and council approvals. Under-insurance is the biggest risk on a partial claim - if the sum insured doesn't reflect current rebuild costs, the insurer can reduce the payout proportionally. Professional replacement cost valuations are the most reliable method, and we check policy wording before bind to confirm how under-insurance provisions apply.

5. Claims history

In our experience, insurers look more harshly at frequency than severity. Three small claims in five years signals a maintenance or tenant-management issue and tends to price worse than one larger claim from a storm event. It's not a formal rule, but it's what we see consistently across our portfolio. Clean records get rewarded.

6. Tenancy profile and occupancy

Long-term residential tenants managed by a professional property manager = cheapest. Mix of short-stay / Airbnb = higher. Any commercial tenancy on the ground floor typically pushes premiums up materially, as the risk shifts toward mixed-use property pricing. The exact uplift depends on the insurer and the commercial activity.

The five case studies below are real Block of Units placements we've completed recently. Every premium figure and outcome is drawn from an actual policy bound. Insurer names are given where relevant; some details have been generalised.

Five practical ways to improve your block of units pricing at renewal:

Get the sum insured right

Under-insurance can reduce what the insurer pays out on a partial claim - and over-insurance costs you premium every year for cover you'll never use. A professional replacement cost valuation every 2-3 years keeps the figure honest. East-coast construction costs have moved significantly over the past few years - plenty of blocks are quietly underinsured.

Increase the excess

Moving up a couple of excess tiers usually takes a meaningful chunk off the annual premium. For larger blocks with good maintenance history, the trade-off often works out in your favour over a full renewal cycle - we can model the numbers at quote stage.

Fix the claims narrative

If you've had multiple small claims, document the remediation - the roof has been replaced, the plumbing has been updated, the tenant screening process has changed. Insurers price claims frequency more than size, and showing you've fixed the underlying cause matters at renewal.

Compliance and fire protection

Smoke alarm compliance, electrical testing certificates, gas compliance, and any fire protection upgrades all feed into the submission. Small blocks don't get big discounts for this, but they can move a borderline "will-they-quote" decision into the green.

Re-market annually with a broker

The insurer that was cheapest last year may not be this year. Insurer appetite shifts regularly. A broker testing 3-4 markets annually keeps your pricing sharp - and often identifies better cover wording at the same or lower premium.