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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
What does Landlord Insurance cover – Buildings, Contents and, Building and Contents
Summary of Cover
Summary of Cover
This table is a summary only. Refer to the Product Disclosure Statement. for a full list of conditions, limits, and exclusions.
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:
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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.
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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.
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Review your quote
Check all the details to understand your level of cover and the excess you’ve selected.
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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.
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Home Insurance calculators
We have calculators that can help you estimate the value of your home buildings and contents. This value is also known as the sum insured.
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Manage your policy or make a claim
You can lodge a claim online by filling out a form, or call us on 13 19 03.
For full details on how you’re covered, read the Home Insurance Product Disclosure Statement.
The impact of COVID-19 has resulted in some changes to RACV Landlord Insurance. From 14 June 2020, no new RACV Landlord Insurance policies are being issued that include Rent Default.
Below, you can find information on what this means for your cover depending on when you took out your insurance policy.
Policies taken out after 14 June 2020
Why has Rent Default been removed?
Unfortunately, one of the financial consequences of COVID-19 is 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 has been removed from all new RACV Landlord Insurance policies at this stage, as it’s no longer unexpected.
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.
Policies taken out before 14 June 2020
I have an existing Landlord Insurance policy, what does this change mean for me?
There is no change to existing landlord policies. Coverage and support will continue as currently detailed in the Product Disclosure Statement (PDS).
Every claim lodged under a Landlords 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:
- written rental agreement that states the term of the rental period and the amount of rent and bond your tenant needs to pay.
- 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:
- do everything reasonable to prevent further loss and;
- 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 $10000.
- 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.
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 RACV Home Insurance Product Disclosure Statement for more information.
Terms and conditions
1 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 rent payments before policy start date. A valid rental agreement is required.
2 This cover is not available if a previous claim for rent default, theft or damage by tenant has been paid under the same tenancy. A valid rental agreement is required.
3 Does not apply if only claiming for theft of keys
*To qualify for the Multi-Policy Discount, members must hold two eligible RACV Insurance policies. Excludes Travel, Business, Farm, Single Item and Pet Insurance products. On existing policies, discount takes effect at next renewal.
RACV Home Insurance is issued by Insurance Manufacturers of Australia Pty Limited ABN 93 004 208 084 AFS Licence No. 227678. The information on this website is general advice only so before making any decisions, please consider your own circumstances and the Product Disclosure Statement.