Using Meteor 0.9.3 and iron:router 1.0.0-pre2, this error shows on the console even though iron:layout was installed, see below:
willems-mini:iron willem$ meteor add iron:router@=1.0.0-pre2
added iron:location at version 1.0.0-pre2
added iron:dynamic-template at version 1.0.0-pre2
added iron:router at version 1.0.0-pre2
added iron:layout at version 1.0.0-pre2
added iron:middleware-stack at version 1.0.0-pre2
added iron:url at version 1.0.0-pre2
added iron:controller at version 1.0.0-pre2
added iron:core at version 1.0.0-pre2
iron:router: Routing specifically designed for Meteor
There are no other packages, just the defaults for meteor:
willems-mini:iron willem$ meteor list
autopublish      1.0.0  Publish the entire database to all clients
insecure         1.0.0  Allow all database writes by default
iron:router      1.0.0-pre2  Routing specifically designed for Meteor
meteor-platform  1.1.1  Include a standard set of Meteor packages in your app
I am trying to run a very simple app:
1 javascript file:
Router.route('/', function () {
    this.render('home');
});
if (Meteor.isClient) {
    Template.home.events({
        'click button': function () {
            console.log('click!');
        }
    });
}
and 1 html file:
<head>
    <title>iron router test</title>
</head>
<body>
    {{> defaultLayout}}
</body>
<template name="defaultLayout">
    <header>
        {{> yield "header"}}
    </header>
    <article>
        {{> yield}}
    </article>
    <footer>
        {{> yield "footer"}}
    </footer>
</template>
<template name="home">
    {{#contentFor "header"}}
        <button>click header</button>
    {{/contentFor}}
    <button>click</button>
    {{#contentFor "footer"}}
        <button>click footer</button>
    {{/contentFor}}
</template>
Well, like your error says you're missing an iron layout.
Could look something like this in your lib/router.js or wherever you hold your router code:
Router.configure({
    layoutTemplate: 'layout',
    loadingTemplate: 'loading'
});
And so the respective <template name="layout"> should be there.
This is not how iron:router layouts are supposed to work.
Get rid of your explicit inclusion of the layout in the body :
{{! this is WRONG, remove the body tag altogether }}
<body>
    {{> defaultLayout}}
</body>
The place where your specify the layoutTemplate is in the RouteController :
Router.route('/', function () {
  this.render('home');
},{
 layoutTemplate:"defaultLayout" 
});
Declaring explicitly your RouteControllers is usually a nicer design pattern.
lib/router.js
Router.route("/",{
  // give the route a name so it figures out itself to use :
  // - HomeController
  // - a template name "home"
  name:"home"
});
lib/controllers/lib/default-layout.js
DefaultLayoutController=RouteController.extend({
  layoutTemplate:"defaultLayout"
});
lib/controllers/home.js
HomeController=DefaultLayoutController.extend({
  //
});
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