RACV Landlord Insurance

Peace of mind for your investment property

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What is Landlord Insurance?

RACV Landlord Insurance covers your investment property for a variety of tenant related incidents and a range of insured events such as fire, flood and storm.

With RACV Landlord Insurance, you can choose from three forms of cover to protect your investment; buildings, contents, or combined building and contents.

Did you know you're covered for: 

  • Tenant damage
  • Damage caused by a tenant's pet
  • Replacement locks

Landlord Buildings

Ideal for standalone houses where you want to cover the structure of the rental property.

Landlord Contents

Cover for furniture and furnishings you provide to your tenants, including curtains. This policy is also suited to investment properties with a strata arrangement, like apartments.

Landlord Building and Contents

Ideal for standalone houses where you want to cover both the structure of the rental property and any furniture and furnishings you provide to your tenants, including carpets and curtains.

What does Landlord Insurance cover – Buildings, Contents and, Building and Contents

Regardless of your choice to insure your buildings, contents or both, you'll be covered for the following when you take out an RACV Insurance policy:
 

  • Loss of rent cover for up to 12 months if your rental property is uninhabitable following a listed event.2
  • Damage by tenants and tenant's pets including theft by the tenant or their guest.3
  • Lock replacement costs up to $800 if a key for an external lock to your rental property is stolen during a theft at your site or if it’s not returned to you upon termination of a tenancy.4
  • Damage from drug distribution and storage: Damage caused by a tenant or their guest by the manufacturing, storage or distribution of illegal drugs.
  • Lawful removal and disposal of tenants’ possessions costs up to $10,000 if a tenant leaves without notice.
  • A range of events, such as fire, theft and attempted theft, vandalism, storm, storm surge, animal damage, earthquake and explosion.
  • Up to $20 million in liability cover to handle a claim made against you for an incident taking place at your home or site which causes death or injury to someone else or loss or damage to someone else's property.
  • Rent Default up to $10,000 and up to $10,000 towards your legal costs to recover rent#.
    # We will deduct from your claim four times the weekly rental amount in addition to any excess that applies. A valid rental agreement is required. This cover is not available if a previous claim for rent default, theft or damage by tenant has been paid under the same tenancy or if your tenant is behind in rent payments before your policy begins.

Read the Product Disclosure Statement for a full list and description of items covered in building, contents and combined policies. The Premium, Excess and Discounts guide (PED) provides further details on how we calculate your premium, excess levels and discounts.

It’s important to understand what you’re not covered for with RACV Landlord Insurance. Here are some examples of things that are not covered. Please check the Product Disclosure Statement for a full list of conditions, limits and exclusions: 

  • Loss or damage caused intentionally by you or by someone else with your or your tenant's consent. 

  • Items that are covered by an insurance policy taken out by an owners’ corporation or similar body, or part of common property.

     

Customer care

No query is too hard to handle. Our Australian-based consultants are always here to help. 

Exclusive savings

RACV Members save with discounted attraction tickets, Woolworths WISH gift cards, special prices on local travel, day trips, and more.  

Multi-Policy discounts

The more RACV Insurance policies you hold, the more you can save. Get 10% off when you take out two or more eligible policies.1 

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Summary of Cover

Summary of Cover

Landlord Buildings Insurance

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Landlord Contents Insurance

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Landlord Buildings & Contents Insurance

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Demolishing and removing debris
Rebuilding fees
Damage to kitchen appliances e.g. dishwasher, stove
Damage to the building e.g. roof, shed, walls
Damage to floating floors, carpets and curtains
Fridges and washing machines
Rent default

This table is a summary only. Refer to the Product Disclosure Statement. for a full list of conditions, limits, and exclusions.

Getting started

New to buying insurance? Here’s the basics. Once you choose the cover you need – buildings, contents or combined buildings and contents – you'll need to:

  1. Calculate the sum insured

    The sum insured is the maximum amount allocated to repair your home or replace your contents following an insured event. You can estimate these values using our calculators below.

  2. Get a quote

    You can get a quote for an RACV Home Insurance policy you’ve decided is right for you online or by calling us on 13 72 28.

  3. Review your quote

    Check all the details to understand your level of cover and the excess you’ve selected.

  4. Purchase your policy

    Once you’re happy with the level of cover, you can finalise your payment online, or by calling us and providing your quote number.

Helpful tools

Frequently asked questions on Rent Default

Policies taken out between 14 June 2020 and 17 April 2021

Why was Rent Default removed?
 Unfortunately, one of the financial consequences of COVID-19 was the sharp increase in tenants unable to pay their rent as outlined in their rental agreements.

Given this heightened risk and evidence of Rent Default, this cover was removed from all new RACV Landlord Insurance policies for this period.

Does my policy cover cleaning/decontamination if my tenant tests positive to COVID-19 and self-isolates in my rental property?
 No, as this is not a listed event.

What if I want to add Rent Default to my existing policy?
 If you purchased a Landlord Insurance policy between 14 June 2020 and 17 April 2020 and want to add Rent Default to your existing policy, please call us on 13 72 28.

Policies taken out before 14 June 2020 and on or after 18 April 2021

I have an existing Landlord Insurance policy, what does this change mean for me?
There is no change to Landlord policies purchased before 14 June 2020 and on or after 18 April 2021. Coverage and support will continue as currently detailed in the Product Disclosure Statement (PDS).

Every claim lodged under a Landlord policy will be assessed on a case-by-case basis, based on any terms and conditions of the PDS.

Due to the unprecedented circumstances of COVID- 19, landlords are now only required to provide proof of financial loss rather than a tenant eviction notice or intent to re-let when lodging a claim.

Is the process for making a claim still the same?
Yes, the current process for claims is still the same. For one incident, you can only claim rent default under Buildings Insurance or Contents Insurance - you cannot claim under both.

However, due to the unprecedented circumstances of COVID- 19, landlords are now only required to provide proof of financial loss rather than a tenant eviction notice or intent to re-let when lodging a claim.

Does RACV Landlord Insurance Policy cover me for Rent Default during COVID-19, if my tenant loses their job and can’t pay their rent?
You’re entitled to make a claim if your tenant has defaulted on their rental payments, whether this was due to COVID-19 or other events, provided that:

  • You have not been previously paid a claim under the same tenancy for: 
    • rent default 
    • theft or attempted theft by a tenant or their guest, or 
    • vandalism or a malicious or intentional act by a tenant or their guest, and; 
    • your tenant was not behind in rent payments before your policy started.

Is the process for making a COVID-19 Rent Default claim the same? Are there any exclusions/restrictions to claiming?
Yes, the process is the same. However, due to the unprecedented circumstances of COVID-19, you are now only required to provide proof of financial loss rather than a tenant eviction notice or intent to re-let when lodging a claim with RACV Landlord Insurance.

For one incident, you can only claim rent default under Buildings Insurance or Contents Insurance - you can’t claim under both.

What documents do I need to substantiate my claim?
For any Rent Default claims, you’ll need to supply the following documentation:

  1. written rental agreement that states the term of the rental period and the amount of rent and bond your tenant needs to pay.
  2. the current Rental Ledger that shows the rental payments made by the tenant so far and when the rental payments stopped, causing the default.

Keep in mind that the PDS states that you are also expected to:

  1. do everything reasonable to prevent further loss and;
  2. take all reasonable steps available to relet your property, and/or legally terminate the tenancy and evict your tenant when you become aware your tenant’s behaviour may cause you to make a claim for Rent Default.

In cases where your tenant can no longer pay rent because of COVID-19, it will be accepted that you have not attempted to re-let or evict yet. Instead, you will be asked for evidence of your tenant’s loss of income as a consequence of COVID-19 and that you attest to seek to control losses as much as you can.

If my tenant moves out and I can’t secure another tenant because there’s little demand for rental properties, will my loss of rent be covered?
To an extent. If the tenant vacates the premises before the Lease Agreement end date, Rent Default will be covered until the policy limit has been exhausted or a new tenant is secured, whichever comes first.

Does my policy cover cleaning/decontamination if my tenant tests positive to COVID-19 and self-isolates in my rental property?
No, as this is not a listed event.

If my tenant leaves the property and returns to their home country due to COVID-19, and contact/communication is lost, am I covered for rent default? Do I need to go to the Tribunal and request possession of the property to be covered?
Yes, in this situation, any claim lodged for Rent Default and/or Malicious Damage will be managed as per the normal process and the applicable State-based legislation must be followed.

How much Rent Default can I claim?
The maximum amount for a Rent Default claim is $10,000.

  • If the Rent Default limit isn’t exhausted in the first payment and a new tenant hasn’t been secured, you will receive fortnightly payments until the limit has been exhausted or a new tenant is secured, whichever comes first.
  • The Landlord/Real Estate Agent must continue to mitigate the loss by actively advertising for a new tenant.

Do I have to pay an excess?
Yes, 4x the weekly rent amount that is shown in your written rental agreement plus the rent default excess of $300.

The applicable excess will not be required to be paid upfront, as it will be deducted from the cash settlement amount due to be paid to you during the claim for your rent default loss.

Example - Deductions from Settlement

  • Weekly rent: $1000
  • Claimed 9 weeks rent: $9000
  • Less 4 weeks rent: $4000
  • Less rent default excess: $300
  • Claimable amount: $4700

When can I lodge my Rent Default claim due to COVID-19?
As the applicable excess on any Rent Default claim is 4x the weekly rent plus $300 Rent Default excess, the loss of rent suffered must exceed that amount before a claim can be processed/paid, but the claim can be lodged for consideration earlier.

General frequently asked questions

What is considered a rental property?

A rental property is any enclosed building at your premises that has walls, a roof and can be locked up. Your rental property also includes home improvements such as garages, carports, in-ground pools, or fixtures permanently attached to your home. For example, light fixtures, built-in wardrobes and kitchen cupboards. If your rental property is a flat or unit, it also includes lockable storage that's reserved for you inside the complex.

Can I choose my own repairer for my home repairs?

Yes; but if you choose not to use an RACV Insurance preferred repairer, the repairs will need to be arranged and managed by you and anything that goes wrong (like faulty workmanship) will not be covered by your policy.

You’ll also only be paid the fair and reasonable amount that the repairs should cost.

Am I covered if my tenant damages my property or its contents?

Yes, you’re covered if loss or damage is caused by a tenant or their guest. This includes:

  • vandalism or a malicious act
  • intentional and unintentional damage
  • alterations that have been made that you didn’t allow
  • contamination from illegal drug-related activities.

Note that the applicable excess will be the basic excess on your policy in addition to 4x the weekly rent amount shown on your written rental agreement.

You and your tenant must have a valid rental agreement. Your policy doesn't cover damage resulting from wear and tear.

Check the Product Disclosure Statement for more information.

Explore other RACV products

More information you may be interested in...

1 The Multi-Policy Discount and Years of Membership Benefits exclude Travel, Business and Farm Insurance products. To qualify for the Multi-Policy Discount, you must hold two eligible RACV Insurance policies. For further details, see the Premium, Excess and Discounts guide at racv.com.au. Discounts will only be applied until any applicable minimum premium is reached. On renewal, any increases or decreases in your premium may be limited by factors such as your previous year’s premium. You may not save more with more eligible policies and by staying with RACV Insurance longer if a minimum premium is reached, or limits have been applied to increases or decreases in your premium.

2 Covered under Landlord Buildings Insurance only, if the home is deemed unliveable. A valid rental agreement is required.
3 We will deduct from your claim four times the weekly rental amount in addition to any excess that applies. A valid rental agreement is required. This cover is not available if a previous claim for rent default, theft or damage by tenant has been paid under the same tenancy, or if your tenant is behind in rent payments before your policy begins. 
4 Does not apply if only claiming for theft of keys.

The information provided is general advice only. Before making any decisions please consider your own circumstances and the Product Disclosure Statement and Target Market Determinations. For copies, visit racv.com.au. As distributor, RACV Insurance Services Pty Ltd AFS Licence No. 230039 receives commission for each policy sold or renewed. Insurance product(s) issued by Insurance Manufacturers of Australia ABN 93 004 208 084 AFS Licence No. 227678.

* The RACV Home Buildings and Home Contents Calculators provide an indication of rebuilding or replacement costs only and in no way guarantees the amount RACV Insurance may agree to insure your home or contents for. It is your responsibility to check that this amount is enough to cover the rebuilding costs of your home or replacement costs of your home’s contents at today’s prices. Before you decide whether to buy or continue to hold RACV Home Insurance, you should calculate the actual replacement value of your home and contents and consider the information in the Product Disclosure Statement.