How Much Does Block of Units Insurance Cost in 2026?

Key Takeaways:

• Block of units insurance typically costs $3,000-$15,000+ annually depending on unit count, location, and building type
• Premiums can jump 20% or more year-on-year - an annual review with a broker catches these spikes early
• Non-strata blocks often cost more to insure than strata-titled properties due to fewer insurer options

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You’ve crunched the numbers on your block of units. Rental yield looks good. But then your insurance renewal lands - and it’s 25% higher than last year. What’s going on?

Insurance costs for block of units have been climbing steadily, and many property investors are caught off guard. The challenge is that unlike standard landlord insurance (which covers a single property), block of units represent aggregated risk. One fire, one burst pipe, one storm - and the insurer’s facing claims across multiple tenancies at once.

Here’s what you actually need to know about what block of units insurance costs in 2026, what drives premiums up (or down), and how to get good value without sacrificing cover.

What does block of units insurance actually cost?

Block of units insurance typically ranges from $3,000 to $15,000 or more per year, depending on the number of units, building age, location, construction type, and sum insured. Here’s a rough guide based on what we see across our portfolio:

Number of Units	Building Sum Insured	Typical Premium Range
2 units (duplex)	$350,000 - $650,000	$1,200 - $2,800
3 units	$600,000 - $850,000	$3,000 - $5,500
4-5 units	$900,000 - $1,500,000	$4,500 - $8,500
6+ units	$1,500,000+	$6,500 - $15,000+

These ranges come from 88 actual quotes we pulled at random from customers we’ve dealt with over the last 6 months. The median premium across our portfolio is $3,590, with most falling between $2,000 and $6,000. Here are some real examples from our book:

• A 6-unit block in NSW with ~$1.6M building sum insured: quotes ranged from $7,410 (SGUA) to $13,491 (QBE) - a $6,000+ difference
• A 5-unit block in Western Sydney with $1.5M sum insured: $6,380 (SGUA) vs $13,971 (QBE)
• A 4-unit double brick block built in 1970 with ~$1.4M sum insured: $5,069 (CGU) vs $8,890 (SGUA) - a $3,800 difference
• A 3-unit block in regional NSW with ~$800K sum insured: $5,089 (SGUA with $5K excess) / $5,320 (with $2K excess)

The ranges are wide because premiums depend heavily on:

• Sum insured (replacement value of the entire building)
• Location (flood zones, bushfire areas, coastal exposure)
• Age and construction (older buildings cost more)
• Claims history (yours and the postcode’s)

How we calculated these numbers

These figures aren’t theoretical - they’re from real quotes we’ve placed for clients. Here’s our methodology:

• Sample size: 88 quotes pulled at random from the last 6 months
• Mix: Includes new policies and renewals across NSW, VIC, QLD, WA, and other states
• Insurer panel: All quotes sourced from our insurer panel (e.g., SGUA, QBE, CGU, Blue Zebra, Allianz + more)
• Property types: Duplexes through to 10+ unit blocks, brick, weatherboard, and mixed construction

The median premium was $3,590, with most falling between $2,000 and $6,000. Outliers on both ends typically had location-specific factors (flood zones, bushfire areas) or unusual building characteristics.

State-by-state premium variations

Premiums vary significantly by state due to natural disaster exposure, insurer appetite, and local market conditions:

State	Typical Range	Notes
NSW	$3,500 - $8,000	Higher in flood zones (Northern Rivers) and bushfire areas (Blue Mountains, South Coast)
VIC	$3,000 - $7,500	Melbourne metro generally competitive; regional areas vary
QLD	$4,000 - $10,000+	Cyclone loading in northern regions; flood exposure in Brisbane catchments
WA	$3,200 - $7,000	Limited insurer options in some regional areas
SA/NT	Varies widely	Fewer insurers willing to quote; NT can be particularly challenging

These are indicative ranges based on our portfolio. Your actual premium depends on your specific property, location, and circumstances.

Why do premiums vary so much between quotes?

You might get three quotes and see a $4,000 difference between them. That’s not unusual. Here’s what’s happening.

Insurance for block of units is a specialist product. Most mainstream insurers don’t want the aggregated risk. That means fewer players in the market - and those who do write this business price based on their specific risk appetite.

One insurer might be comfortable with older brick buildings but nervous about weatherboard. Another might steer clear of certain postcodes entirely. A third might load premiums heavily if the block’s had water damage claims in the past.

The result? Your quote depends as much on who you’re quoting with as what you’re insuring.

We see this play out constantly.

• On a 4-unit block in Wollongong ($1.33M sum insured), we got quotes ranging from $5,069 (CGU) to $8,890 (SGUA) - a $3,800 difference for identical cover.
• On a 5-unit block in Sydney, SGUA quoted $6,380 while QBE came in at $13,971 - more than double.

Even on smaller blocks, the variance is significant. A duplex-style property in Lakemba ($450K sum insured) saw quotes of $1,705 (SGUA), $1,972 (CGU), and $2,859 (Blue Zebra). Same building, $1,150 spread.

Investors are often surprised when their premium jumps 20% or more at renewal. It’s not always something they did - sometimes the insurer’s just changed their appetite for that postcode or building type. That’s why having a broker shop around annually is so important.

How is non-strata different from strata insurance?

If your block isn’t strata-titled (ie you own the whole building rather than individual lots within a strata scheme), you’re in non-strata territory. This changes things.

Non-strata block of units insurance covers:

• The entire building structure under one policy
• All common areas (hallways, stairs, gardens, parking)
• Public liability for the whole property (usually $20 million)
• Loss of rent across all units if the building becomes uninhabitable

With strata, the body corporate arranges building insurance and each owner contributes via levies. With non-strata, it’s all on you.

Cost-wise, non-strata often works out more expensive per unit than strata insurance because:

1. Fewer insurers offer non-strata products
2. You can’t spread risk across multiple owners
3. Underwriters see single-owner blocks as concentrated risk

The flip side? You have complete control. No waiting for body corporate meetings, no disputes over coverage levels, no reliance on other owners to maintain the building.

What factors affect your premium the most?

If you want to understand (or influence) what you’re paying, these are the big levers:

1. Sum insured

Your sum insured should reflect the full replacement cost of rebuilding the entire structure - not the market value, not the purchase price. Get this wrong and you risk being underinsured.

Most Australian policies have an Average Clause (sometimes called co-insurance). If you’re insured for less than 80% of the true replacement cost, the insurer can proportionally reduce any claim payout. Underinsured by 40%? You might only get 60% of a partial claim paid.

We recently had a client increase their building sum insured mid-policy from $950K to $1.37M after getting a proper valuation. The endorsement cost them an extra $1,442 - but they went from significantly underinsured to properly protected. That’s a small price for peace of mind.

2. Location

Postcodes matter. A lot.

If your block is in a flood zone, cyclone region, bushfire-prone area, or coastal strip, expect loadings. Some areas have seen insurer withdrawals entirely - not because of your block specifically, but because the overall risk profile makes it uneconomic.

We had a client in the Northern Territory where SGUA and Allianz both declined to quote due to location. Blue Zebra came through at $754 - but it took shopping around (and negotiation) to find an insurer willing to write the risk.

3. Building age and construction

Older buildings (especially pre-1970) often attract higher premiums due to:

• Outdated wiring or plumbing
• Non-compliant building elements
• Higher rebuild costs for heritage features

Construction type matters too. Brick veneer is generally cheaper to insure than weatherboard. Buildings with combustible cladding face significant challenges (and often exclusions).

4. Claims history

Both your personal claims history and the building’s history affect pricing. Multiple water damage claims in the past five years? Expect that to show up in your premium.

One of our clients in Queensland had a claim just finalized for water damage when they came to us for renewal quotes. Despite the claim, we still managed to find competitive options from other insurers - though they needed to disclose the claim.

How can you reduce your premium without reducing cover?

Good news: you’re not stuck just accepting whatever quote lands. Here’s what actually works.

Get an annual review

This sounds obvious, but it’s the single most effective strategy. Insurance markets shift constantly. The insurer who was cheapest last year might be 30% higher this year - while a competitor who was expensive has dropped their rates.

Tank does this for every client at renewal. We don’t just auto-renew; we re-market to our panel and come back with options. That 20%+ premium jump? Often we can soften it or find an alternative.

Increase your excess

Opting for a higher excess (eg $5,000 instead of $2,000) can reduce your premium noticeably.

On a 5-unit block in regional NSW, the same SGUA policy was $5,871 with a $5K excess vs $6,107 with a $2K excess - a $236 annual saving. On a 3-unit block, the difference was $231. Not huge, but it adds up over time.

Just make sure you can actually afford the excess if you need to claim.

Bundle where possible

If you have multiple properties or business insurance needs, bundling with one insurer can unlock discounts. At the very least, mention your other policies when quoting.

Maintain the property

Insurers ask about the condition of the building for a reason. Well-maintained properties with updated wiring, plumbing, and no deferred maintenance present lower risk.

If you’ve recently done electrical upgrades, roof repairs, or installed smoke alarms, let your broker know - it can influence pricing.

Provide detailed information upfront

Incomplete applications get conservative (read: expensive) pricing. The more information you provide - accurate sums insured, building specifications, tenant types, claims history - the more accurately insurers can price your risk.

What’s included at different price points?

Not all policies are created equal. Here’s what you should expect as you move up in coverage:

Basic cover ($2,500 - $4,000 range)

• Building damage (fire, storm, impact, burst pipes)
• Public liability ($10-20 million)
• Limited loss of rent (typically 12 months)
• Named perils only (no accidental damage)

Mid-range cover ($4,000 - $8,000 range)

• Everything above, plus:
• Accidental damage to the building
• Tenant damage (deliberate and malicious)
• Extended loss of rent (up to 24 months)
• Higher liability limits
• Some legal expense cover

Comprehensive cover ($8,000+ range)

• All of the above, plus:
• Flood cover (often excluded or optional elsewhere)
• Full replacement cost with no co-insurance penalty
• Emergency accommodation for tenants
• Landlord contents (if you provide furnished units)
• Legal liability for body corporate duties (even if non-strata)

The key question: What can you not afford to be without? For most investors, accidental damage and adequate loss of rent cover are the non-negotiables.

When to review your block of units insurance

Don’t wait for a nasty surprise at renewal. Here’s when you should be actively reviewing your policy:

• At renewal (annually) - Don’t auto-renew without comparing. Insurers change appetite constantly.
• After any claim - Your options and pricing may have changed.
• When your building sum insured needs updating - Construction costs rise 5-7% annually. An outdated sum insured leaves you underinsured.
• When acquiring additional units or properties - Your risk profile has changed.
• After major renovations or upgrades - Electrical, plumbing, or roof work can affect your premium (often positively).
• If your current insurer sends a non-renewal notice - Start shopping early; don’t leave it to the last minute.
• When premiums jump 15%+ unexpectedly - There may be better options elsewhere.

A good broker will proactively do this for you at renewal - but it’s worth knowing when to ask the question.

Frequently Asked Questions

Do I need building insurance if I own the whole block?

Yes. Without strata, there’s no body corporate arranging cover for you. You need a block of units or non-strata insurance policy to protect the entire building. Standard home or landlord insurance typically won’t cover multi-unit properties adequately.

How do I know if my sum insured is correct?

Get a professional building valuation or use a quantity surveyor to calculate replacement cost. Don’t use market value or purchase price - these don’t reflect what it would actually cost to rebuild. Review your sum insured annually as construction costs rise.

Why did my premium increase so much at renewal?

Insurance premiums for blocks can jump 20% or more year-on-year depending on insurer appetite, location risk reassessment, claims history, and overall market conditions. Working with a broker ensures you’re not just accepting the renewal price - there may be better options available.

Is block of units insurance tax deductible?

Generally yes - building insurance premiums for investment properties are typically deductible as a rental expense. However, you should always check with your accountant based on your specific situation.

Can I get insurance if my block has had claims?

Usually yes, though your options may be narrower and premiums higher. A broker can help present your risk favourably and find insurers willing to quote despite claims history.

Getting the Right Cover at the Right Price

Block of units insurance isn’t a set-and-forget purchase. Premiums move, insurers change appetite, and your building’s risk profile evolves. The investors who get the best outcomes are the ones who treat insurance as an annual strategic review - not just a renewal to rubber-stamp.

If you’re not sure whether you’re paying too much (or getting too little), it’s worth having someone take a look. Tank Insurance specialises in non-strata and block of units cover for property investors across Australia. We’ll shop your risk, explain your options, and find the balance between premium and protection that works for you.

Want to know what your block should cost to insure? Fill out the form below and we’ll come back with a quote comparison.

Or call us at 02 9000 1155 or email [email protected].

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Related reading

• Insuring Your Non-Strata Block of Units - Comprehensive guide to non-strata coverage
• What Insurance Do I Need for a Non-Strata Unit Block? - Coverage essentials explained
• What is Loss of Rent Insurance? - Understanding this critical cover
• Insurance Claims for Non-Strata Unit Blocks - How to navigate the claims process
• Trends and Tips in Non-Strata Block of Units Insurance - Market insights

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Reviewed by: Marel Pencev Principal Insurance Broker, Tank Insurance

Experience	Specialty	Background	Qualifications
15+ Years	Scale-ups, Middle Market, Complex Risks	Banking, Finance, Management Consulting	Dip. Fin. Serv, ANZIIF Snr Assoc, RG146

Marel is the founder of Tank Insurance. He spent years in banking and finance, then moved into asset finance and management consulting. Beyond his corporate career, he’s been an investor, founder, and builder of multiple businesses - so he knows what it’s like to make payroll, manage cash flow, and think about risk from the owner’s perspective. As a property investor himself with a portfolio of 5 properties, Marel works closely with real estate agents, buyers agents, and investors - and is passionate about supporting investors in their journey.

Last updated: January 2026

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This is general information only. It does not take your objectives, financial situation, or needs into account. Always read the relevant Product Disclosure Statement (PDS) and seek independent advice before making insurance decisions.