RACV Landlord Insurance covers your investment property for a variety of tenant-related incidents and insured events such as fire, flood and storm.
You can choose from three types of cover to protect your investment and suit your circumstances, including buildings, contents, or combined building and contents.
Ideal for standalone houses where you want to cover the structure of the rental property.
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.
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.
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:
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:
This is a summary only. Refer to the Product Disclosure Statement for a full list of conditions, limits and exclusions.
If you’re new to buying insurance, don’t worry – it’s easier than you think.
This should be enough to repair or replace your home and/or contents after an insured event. If you need help, use our building calculator or contents calculator.^
Check your coverage and excess to make sure they’re right for you.
Once you’re ready, you can buy your policy online or over the phone.
Your policy provides rent default cover of up to $10,000, plus associated legal costs up to $10,000, if your tenant stops paying rent or leaves without notice.
We do not cover rent default if:
To understand what's covered under rent default, please read the Product Disclosure Statement.
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.
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:
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:
Keep in mind that the PDS states that you are also expected to:
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.
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
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.
Landlord insurance covers things that regular home insurance does, plus some extras that are specific to properties with tenants.
The extras include:
For full details of what is and isn’t covered, see the Product Disclosure Statement.
You should insure your rental property and/or the contents you provide to your tenants for the cost to rebuild and replace them (we call that the ‘sum insured’) , if you had to do it today.
Remember, when we talk about your property, we don’t just mean the building itself. If you have things like fences, sheds, in-ground pools, or covered car spaces, they count too.
There are a few things to think about:
You can use our buildings calculator and contents calculator as a guide*.
Landlord Building Insurance covers the structures on your property, from the building your tenants live in, to fences, sheds, garages and in-ground pools. It also covers permanent fixtures and fittings – think floorboards, cabinets and even solar panels.
Landlord Contents Insurance covers the things you provide to the tenants in your rental property, that aren’t permanently attached. That means everything from furniture and appliances to curtains and carpets.
If you take out a combined policy, you can cover all possible bases. For example, if your house floods and damages the carpets, furniture and the roof, it’s all covered.
Yes, you can. You’ll be paid the fair and reasonable amount that the repairs should cost, but you’ll need to manage and arrange the repairs yourself.
If anything goes wrong (like faulty workmanship), it won’t be covered by your policy. Any repairs organised by RACV Insurance will have a lifetime guarantee.
Your rental property and contents are covered for a range of events including fire, flood, theft or storm.1
You're not covered for:
There are also some items that aren’t covered, like:
1 Unless you have chosen to remove Flood, Rainwater run-off or Storm Surge cover where we have identified your home at risk of flooding. Other conditions apply including that damage caused by actions of the sea is not covered.
For full details of what is and isn’t covered, read the Product Disclosure Statement.
To buy Landlord Insurance, you need a written rental agreement that’s at least one month long.
If you don’t have an agreement, you might want to check out Home Building Insurance.
If you do rent out all or part of your home using platforms like Airbnb or Stayz, you’re not covered if paying guests:
There are a few different ways you can take control of your policy.
Change your basic excess
You can change your basic excess online at your policy renewal time.
Keep in mind that choosing a higher basic excess may reduce your premium. But remember: if you make a claim, you’ll pay more out of pocket.
Update your contact details and payment methods
You can also update your contact details and payment method online.
Make additional changes
Give us a call on 13 72 28 to make other changes, such as updating:
Your policy offers cover for several types of damage by tenants, their pets or their guests.2
This includes:
Some exclusions apply. For full details of what is and isn’t covered, read the Product Disclosure Statement.
Keep in mind that if a claim is paid out due to damage caused by a tenant, we’ll deduct your basic excess, plus 4 times the weekly rental amount.
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 or if your tenant is behind rent payments before policy start date. A valid rental agreement is required.
1 Covered under Landlord Buildings Insurance only, if the home is deemed unliveable. A valid rental agreement is required.
2 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.
3 Does not apply if only claiming for theft of keys.
# RACV Years of Membership: at 5 years Bronze cardholders receive a 5% discount, at 10 years Silver cardholders receive a 10% discount, at 25 years Gold cardholders receive a 15% discount and at 51 years Gold 50 cardholders receive a 20% discount.
* 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.
^ 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.
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. Product(s) issued by Insurance Manufacturers of Australia Pty Ltd ABN 93 004 208 084 AFS Licence No. 227678.
