RAC Home Insurance [Review]
Private Limited Company
RAC began as the associate section of the Royal Automobile Club, later sold to Lex Service PLC in 1999. Over the years it has changed hands several times and now is jointly owned by CVC Capital Partners and GIC Private Ltd.
While RAC is known most of all for its motor insurance and breakdown recovery services, RAC Home Insurance is one of their lesser known but equally as successful financial products. The majority of RAC Home Insurance reviews, as well as reviews of their customer service, are positive and RAC has received several awards for their products and services over the years.
RAC Buildings and Contents cover has received a 5 star Defaqto rating and in 2017 RAC received the Consumer Intelligence Award for being one of the top 10 most trusted companies in the UK.
RAC Home Insurance Review
RAC Contents cover offers new for old cover, which means that they will pay out for the original value of any damaged items rather than the value after depreciation.
RAC policies do not have many options in terms of cover, but are highly comprehensive as standard, making them simple to apply for and understand.
Outbuildings are covered as standard by Buildings cover. However, when it comes to the contents of your outbuildings, cover is limited to a maximum total of £3,000 per claim.
RAC offer to increase your the sum assured for your contents cover by £3,000 during any month in which you celebrate a religious festival. This ensures that your contents cover will also cover any gifts and food bought for the occasion.
Some types of cover have a mandatory excess that you will need to pay on each claim. For example, you will need to pay a minimum excess of £100 for any claims you make for accidental damage and a minimum excess of £50 for any standard buildings or contents claims you make.
RAC will not cover any damage caused by domestic animals under ‘Accidental Damage Cover’.
Buildings & Contents Insurance Policy Overview
While the following RAC Home Insurance review shows the maximum amount you can claim with these types of cover, other limitations do apply and some types of claims may have a limited payout.
Glossary of Insurance Terms
- Buildings Cover: Covers the physical building and structural components.
- Contents Cover: Covers the contents of your home if they are damaged while in the home, including furniture, electronics and clothing. This also includes four optional levels of cover for personal possessions within the home.
- Accidental Damage Cover: Covers damage or loss of your home’s building or contents caused by sudden, unintentional and unforeseen accidents, such as dropping a glass of wine or throwing a ball through a window.
- Students Contents Cover: Covers the possessions of students in full-time education, such as laptops and mobile phones, even when they are away at university.
- Personal Possessions Cover: Personal possessions cover is an optional extra you can add on to cover items such as laptops and mobile phones. You can claim for damage or loss anywhere in the world for your portable belongings.
- Valuables Cover: This covers particularly valuable items in your home, such as jewellery, paintings and antiques. These items need to be valuated and specified in your policy.
- Office Contents Cover: This covers office equipment in your home, such as laptops, tablets and printers. However, this does not cover items used for business.
- Bicycle Cover: Also known as ‘Pedal Cycle Insurance’, this covers bicycles at home and potentially outside the home (insurer dependent).
- Trace & Access Cover: Covers the cost of detecting, accessing and repairing water leaks.
- Currency Cover: Covers money stolen from the home or through credit/debit card fraud.
- Alternative Accommodation Cover: If your home becomes uninhabitable due to damage or for reasons of personal safety, this cover will pay out for alternative accommodation until your home is safe to return to. Some insurers also expand this cover to include the cost of temporarily housing domestic pets.
Additional Information About RAC Home Cover
Many of the cover limits applying to your policy are determined during the underwriting process rather than being applied generally.
This means that, depending on your circumstances and the value of your property, you may be entitled to larger payouts to cover the cost of repairing or replacing your belongings.
Independent Protection Expert at Drewberry
Home Insurance Policy Exclusions
The following general exclusions apply to all types of cover available on your policy. However, there are other exclusions that apply to specific types of claims that you need to look out for in your policy documents.
- Any damage or loss resulting from deliberate, wilful or malicious actions by the policyholder or any persons lawfully dwelling in the insured home.
- Damage or loss caused by wear and tear, depreciation, mould, fungus, rot, upkeep and repairs.
- Any damages caused by pests and infestation, or damage that occurs over time.
- Radioactive contamination
- War, invasion, terrorism, or military or usurped power.
- Pressure waves caused by aircraft and other aerial devices
- Pollution and contamination
- Any loss or damage relating to confiscation or detention by customs or other authorities.
Additional Cover Options
These additional cover options can be added to your policy for a small fee, ranging from £20 to £42 per year.
Home Assistance Cover:
If you have a home emergency and need fast repairs, adding Home Assistance Cover to your RAC Home Insurance policy will provide you with vital support to ensure that you get the temporary emergency repairs you need as soon as possible.
This additional cover option will give you access to:
- A 24 hour helpline and call out service;
- Up to £1,000 to cover the cost of labour and parts;
- An unlimited number of call outs.
This covers emergency repairs relating to plumbing, drains heating, gas supply, electronics, security, pest control, and alternative accommodation.
Family Legal Protection:
This optional cover from RAC will provide essential support for you and your loved ones if you face any difficult legal problems relating to a claim on your policy. With this cover you will be given access to:
- 24 hour confidential helpline for legal advice and support;
- Up to £50,000 per incident to cover legal costs;
- Assistance if recovering form loss of earnings and damage to your personal belongings or property.
Lost or stolen keys can lead to all manner of disasters, which is where this added cover option comes in handy. This covers all keys to the property if they are lost or stolen during your policy’s lifetime.
With Keycare Cover added to your policy, you will have access to:
- 24 hour emergency helpline;
- A nationwide network of approved locksmiths;
- Up to £1,00 per year to cover the cost of lock and key replacements and repairs;
- A free key fob to help you keep track of your keys if they are lost.
Claiming this cover will not affect your policy’s no claims discount and there is no excess to pay.