RACV Home Insurance is one of the most established home insurance brands in Victoria, Australia, backed by the Royal Automobile Club of Victoria and underwritten by Insurance Manufacturers of Australia. Here is the short version before the full breakdown.
What it covers: Buildings, contents, combined, landlord, and renters insurance, with flood and storm surge cover included as standard on most policies rather than sold as a costly add on.
Standout benefit: A no claim bonus that grows by 5 percent each consecutive claim free year, up to a maximum of 25 percent off your premium.
Loyalty rewards: RACV’s Years of Membership Benefit gives long term members a discount of up to 20 percent on eligible insurance, tied to the color of their membership card.
Multi policy savings: Bundle two or more eligible RACV policies, such as home and car insurance, and save up to 10 percent on each.
2026 pricing update: A new RACV Home Insurance Premium, Excess and Discounts Guide took effect for policies starting January 29, 2026, or renewing from March 15, 2026, reflecting continued cost pressure from rebuilding inflation and extreme weather claims.
Recognition: RACV Home Insurance has been recognized in the Mozo People’s Choice Awards from 2023 through 2025 and in the Finder Customer Satisfaction Awards.
Bottom line: RACV is a strong, well rounded option for Victorian homeowners and renters, especially long term RACV members, though it offers fewer new customer sign up discounts than some online only competitors.
A note for readers outside Australia: RACV Home Insurance is issued in Australia, primarily for properties in Victoria, with limited eligibility for parts of New South Wales, the Australian Capital Territory, and Queensland. It is not available to homeowners in the United States. If you are in the US, you will need a US based home insurer. This review is written for an international audience researching how RACV compares to other home insurance providers, including readers comparing insurance models across countries or relocating to Australia.
RACV, short for the Royal Automobile Club of Victoria, was founded in 1903 and has grown from a motoring club into a broad membership organization offering roadside assistance, home emergency services, travel, resorts, and insurance. RACV Home Insurance is distributed to RACV members through RACV Insurance Services and is issued by Insurance Manufacturers of Australia, a company separate from the RACV club itself that underwrites the actual risk.
The product line covers buildings insurance, contents insurance, a combined buildings and contents policy, landlord insurance for rental properties, and renters insurance for tenants who want to protect their belongings without owning the building. Taking out an RACV insurance policy also makes you an RACV member, which unlocks a wider set of everyday discounts on groceries, fuel, travel, and entertainment that go beyond the insurance product itself.
2. Latest RACV Home Insurance News in 2026
RACV has made several updates to its home insurance business through the first half of 2026, ranging from new pricing guides to consumer education content about underinsurance.
January 29, 2026
New Home Insurance Premium, Excess and Discounts Guide
RACV introduced an updated Home Insurance Premium, Excess and Discounts Guide for policies with a start date from January 29, 2026, or a renewal effective date from March 15, 2026 onward. This guide governs how RACV calculates premiums and excesses and explains the mechanics behind the multi policy and Years of Membership discounts.
April 13, 2026
RACV Explains Why Renewal Prices Are Rising
RACV published guidance directly addressing renewal price increases, citing rebuilding cost inflation, material and skilled labor shortages, rising contents repair and replacement costs linked to global supply chain pressure, and an increase in the frequency and severity of extreme weather events such as bushfires, floods, and storms. RACV stated that premiums can rise year over year even when a policyholder’s personal circumstances have not changed and no claim has been made.
April 24, 2026
RACV Urges Homeowners to Review Cover Annually
RACV’s General Manager of Home Insurance, Bill Bloodworth, published consumer guidance recommending that homeowners review their policy at least once a year, ideally before renewal, and reassess cover after major life events such as renovations, new valuables, or a change in how the home is used. The guidance flagged underinsurance as a common and often overlooked risk for long term policyholders who rarely revisit their original sums insured.
Ongoing through 2026
Continued Recognition in Industry Awards
RACV Home Insurance has carried recognition into 2026 from the Mozo People’s Choice Awards, where it has been recognized across the 2023 to 2025 period, along with prior recognition in the Finder Customer Satisfaction Awards, both frequently cited by independent Australian comparison sites as evidence of consistent customer sentiment.
Why this matters for buyers in 2026: The clear throughline in 2026 is cost pressure rather than coverage cuts. RACV has not reduced what it covers, but it has been transparent that rebuilding inflation, extreme weather, and global supply costs are pushing renewal prices upward across the industry, RACV included. The practical takeaway is to actively review your sum insured and excess settings every year rather than letting your policy auto renew unchecked.
3. What Does RACV Home Insurance Cover
RACV offers a reasonably comprehensive standard policy compared to many Australian competitors, particularly because flood is included as a standard inclusion on most policies rather than priced as a separate optional extra. Below is a breakdown of the core covered events and policy types.
Policy Type
Who It Suits
What It Covers
Buildings Insurance
Homeowners who own the structure
The physical building, fixtures, and permanent structures on the property.
Contents Insurance
Owners or renters insuring belongings
Furniture, electronics, clothing, and other personal belongings inside the home.
Combined Buildings and Contents
Homeowners wanting one bundled policy
Both the building and its contents under a single policy and premium.
Landlord Insurance
Property investors renting out a home
Building and or contents cover plus landlord specific risks such as tenant default and malicious damage by a tenant.
Renters Insurance
Tenants who do not own the property
Contents only cover designed for people renting their home.
Standard insured events typically covered include fire, storm, flood, rainwater run off, storm surge, lightning, explosion, escape of liquid, impact damage, malicious damage, and theft by an intruder. Theft cover applies across all RACV Home Insurance policies, although exceptions can apply if the property is rented out through short term platforms such as Airbnb or Stayz, so hosts should check their specific policy terms closely.
RACV No Claim Bonus Ladder: Premium Discount by Consecutive Claim Free Years
Year 1, claim free
5%
Year 2, claim free
10%
Year 3, claim free
15%
Year 4, claim free
20%
Year 5+, claim free
25% maximum
Bonus grows by 5 percent for each consecutive claim free renewal, capped at 25 percent. A claim drops the bonus by 10 percent at the next renewal, down to a floor of 0 percent.
Notably, the bonus reduction works on a 10 percent step down per claim while the buildup is a 5 percent step, meaning a single claim erases roughly two years of accumulated bonus. This structure rewards genuinely long term, low claims customers more than it punishes occasional claimants, since the bonus floor is 0 percent rather than going negative.
4. Optional Add Ons and Extras
Beyond the standard inclusions, RACV offers several optional extras that can be added to most policies for an additional premium.
Accidental damage cover: Covers unintentional damage to your home or belongings that would not otherwise be covered. A 300 dollar excess typically applies specifically to accidental damage claims.
Portable items cover: Extends cover to items like phones, laptops, and jewelry while they are away from the home, useful for anyone who travels with valuable electronics.
RACV Emergency Home Assist: A separate annual fee product, not technically insurance, that provides fast response for plumbing, electrical, and locksmith emergencies. It can be bundled with insurance at a discounted first year rate when purchased together.
Higher or lower basic excess: Policyholders can adjust their basic excess at renewal, trading a higher upfront excess for a lower ongoing premium, or vice versa.
One trade off worth knowing about up front is that flood cover, while included as standard, can also be removed from a policy if a homeowner wants a lower premium and is confident their property carries minimal flood risk. This is the opposite default of many competitors that exclude flood unless you specifically add it.
5. RACV Discounts and Member Benefits Explained
RACV’s discount structure is built around long term loyalty rather than aggressive new customer sign up offers, which is a meaningful difference from challenger brands like Budget Direct or Youi that often lead with first year discounts.
5%
Bronze card, 5 years of membership
10%
Silver card, 10 years of membership
15%
Gold card, 25 years of membership
20%
Gold 50 card, 51 years of membership
On top of the Years of Membership Benefit, RACV offers a Multi Policy Discount of up to 10 percent on each eligible policy when a member holds two or more RACV insurance products at once, such as home and car insurance together. Both the Years of Membership Benefit and the Multi Policy Discount exclude travel, business, and farm insurance products, and both discounts are subject to minimum premium floors, meaning very low premiums may not receive the full advertised discount once that floor is reached.
Beyond insurance specific discounts, simply being an RACV member opens access to a broader benefits ecosystem, including discounted attraction tickets, Woolworths gift cards, fuel discounts at EG Ampol co branded service stations, and accommodation discounts of up to 25 percent at RACV branded resorts. Independent comparison site Finder has specifically noted that RACV does relatively little in the way of upfront sign up discounts compared to brands like Budget Direct, St George, or Westpac, but compensates with this wider member rewards ecosystem.
RACV Discount Stack: How the Main Discounts Combine
No Claim Bonus
Up to 25%
Years of Membership
Up to 20%
Multi Policy Discount
Up to 10%
Pay Annually
Modest saving
These discounts are calculated independently and are subject to minimum premium floors, so the maximum combined saving will vary by policyholder and is not simply additive.
6. What Affects Your RACV Home Insurance Premium
Like most Australian insurers, RACV does not publish a flat rate card. Two core factors drive every premium: the likelihood of a claim being made, and the anticipated cost of that claim if it happens. RACV has been explicit in its 2026 consumer communications about the specific cost pressures behind recent renewal increases.
Rebuilding cost inflation: Material and skilled labor shortages are making it more expensive to rebuild homes after a covered event.
Contents replacement costs: Shipping delays, semiconductor shortages, and global supply chain pressure have made replacing appliances and electronics more expensive.
Extreme weather frequency: Bushfires, floods, and storms are occurring more often and with greater severity, increasing both the likelihood and average cost of weather related claims.
Property specific factors: Location, construction type, age of the home, security features, claims history, and chosen sum insured and excess levels.
Renewal pricing limits: RACV notes that year over year premium changes may be limited by factors such as the previous year’s premium, meaning increases and decreases are sometimes capped or smoothed rather than applied instantly in full.
Practical ways policyholders can manage their premium include paying annually rather than monthly, selecting a higher basic excess if they can comfortably absorb a larger out of pocket cost in the event of a claim, keeping their asset list and property details up to date, and reviewing their sum insured every year using RACV’s online rebuilding and replacement cost calculators, which RACV states provide an indication only and are not a guarantee of the amount the company will agree to insure a home or its contents for.
7. Making a Claim with RACV
RACV offers three ways to lodge a home insurance claim: online through the RACV website, through the RACV app, or by phone. RACV states it will make contact within 72 hours of a claim being lodged and may request a claim reference number for any follow up.
Before starting a claim, it helps to have your policy number, a description of what happened, the date of the incident, and any supporting evidence such as photos or receipts ready to go. A basic excess will typically apply to most claim types, while accidental damage claims specifically carry a 300 dollar excess. Liability claims do not affect a policyholder’s No Claim Bonus, which means a third party liability event will not erase the loyalty discount built up over previous claim free years.
8. Pros and Cons of RACV Home Insurance
Pros
Flood and storm surge cover included as standard on most policies rather than charged as a costly add on.
No Claim Bonus of up to 25 percent for long term, claim free policyholders.
Years of Membership Benefit rewards genuine long term loyalty with discounts up to 20 percent.
Multi Policy Discount of up to 10 percent when bundling home and car insurance together.
Up to 12 months temporary accommodation cover and new for old replacement on eligible items, both stronger than many competitors offer as standard.
Recognized in the Mozo People’s Choice Awards across 2023 to 2025 and the Finder Customer Satisfaction Awards.
Wider RACV membership benefits extend well beyond the insurance policy itself.
Cons
Limited upfront sign up discounts compared to challenger brands that aggressively discount new customers.
Primarily available to properties in Victoria, with only limited eligibility in parts of New South Wales, the Australian Capital Territory, and Queensland.
Renewal prices have been rising industry wide due to rebuilding inflation and extreme weather, and RACV is not immune to this trend.
Cannot cancel a policy online, requiring a phone call to finalize cancellation.
Discounts are subject to minimum premium floors, so long term members on already low premiums may not see the full advertised percentage saved.
Not available to homeowners in the United States or most countries outside Australia.
9. How RACV Compares to Other Australian Insurers
RACV competes most directly with other major Australian home insurers such as AAMI, Budget Direct, Youi, GIO, and Allianz. The table below summarizes the key differences independent reviewers and policyholders most often raise.
Factor
RACV Home Insurance
Typical Challenger Brand
Flood cover
Included as standard, removable for a lower premium
Often a separate paid add on
New customer discounts
Minimal upfront sign up offers
Often a discounted first year premium
Loyalty rewards
Strong, tiered Years of Membership Benefit up to 20 percent
Usually limited or nonexistent long term loyalty discount
Membership ecosystem
Broad, including travel, retail, and fuel discounts
Typically insurance only relationship
Geographic availability
Victoria focused, limited elsewhere in Australia
Often available nationwide across Australia
RACV’s core trade off is consistent in nearly every independent review: it asks for patience and loyalty in exchange for stronger long term value, rather than offering the lowest possible price in year one. Comparison site Finder has specifically highlighted that RACV’s member rewards program is where the brand differentiates itself most clearly, even though it does less in the way of headline policy discounts than some online first competitors.
10. Is RACV Home Insurance Worth It in 2026
RACV Home Insurance tends to be a strong fit for homeowners and renters who are already RACV members, plan to stay with the insurer for several years, live in an area where flood risk makes a flood inclusive policy valuable, or want a single membership organization covering home, car, travel, and everyday discounts under one relationship.
It is a less natural fit for someone purely price shopping for the absolute lowest first year premium, anyone outside RACV’s eligible geographic footprint, or anyone who specifically wants to manage every part of their policy, including cancellation, entirely online without a phone call.
Given the standard inclusion of flood cover, a meaningful no claim bonus structure, and a loyalty program that compounds in value the longer a member stays, RACV remains one of the more well rounded home insurance options available to eligible Australian homeowners in 2026, particularly for those who value consistency over chasing the cheapest renewal every single year. As with any insurance decision, compare a personalized quote from RACV against at least one or two other insurers for your specific address, sum insured, and risk profile before committing.
11. Frequently Asked Questions
Is RACV home insurance available in the United States?
No. RACV is an Australian organization, and RACV Home Insurance is issued for properties primarily in Victoria, with limited eligibility in parts of New South Wales, the Australian Capital Territory, and Queensland. It is not available to homeowners in the United States.
Does RACV home insurance include flood cover?
Yes, flood cover, along with rainwater run off and storm surge, is included as standard on RACV Home Insurance policies. Policyholders do have the option to remove this cover in exchange for a lower premium if they choose.
How much can I save with RACV’s No Claim Bonus?
RACV’s No Claim Bonus increases by 5 percent at renewal for each consecutive claim free year, up to a maximum discount of 25 percent. If a claim is made, the bonus reduces by 10 percent at the next renewal, down to a floor of 0 percent.
What is the RACV Years of Membership Benefit?
It is a loyalty discount tied to how long someone has been an RACV member and the color of their membership card. Bronze cardholders at 5 years receive a 5 percent discount, Silver at 10 years receive 10 percent, Gold at 25 years receive 15 percent, and Gold 50 cardholders at 51 years receive 20 percent.
Can I bundle RACV home insurance with car insurance for a discount?
Yes. RACV’s Multi Policy Discount gives members up to 10 percent off each eligible policy when they hold two or more eligible RACV insurance products at the same time, such as home and car insurance.
Why did my RACV home insurance premium go up this year?
RACV has stated that renewal increases are commonly driven by rebuilding cost inflation, material and skilled labor shortages, rising contents replacement costs linked to global supply chains, and a higher frequency of extreme weather events such as floods, storms, and bushfires. These factors can raise a premium even if a policyholder has not made a claim and their personal circumstances have not changed.
Can I cancel my RACV home insurance policy online?
Not currently. RACV requires policyholders to call its support line to cancel a home insurance policy, although other changes, such as updating contact details or basic excess, can be managed online or in the RACV app.
ED
Editorial Team This article is compiled from publicly available RACV press releases, premium and discount guides, policy disclosure documents, and independent Australian insurance comparison sources current as of June 2026.
Disclaimer: This article is for general informational purposes only and does not constitute financial, insurance, or legal advice. RACV Home Insurance is issued in Australia and is not available to homeowners in the United States. Premiums, discounts, fees, and product terms can change, and individual eligibility, pricing, and underwriting outcomes vary by property and policyholder. Always confirm current details directly with RACV or refer to the official Product Disclosure Statement and Target Market Determination before making any insurance decision. Figures referenced are sourced from RACV’s public premium and discount guides, RACV media releases, RACV policy documents, and independent Australian insurance comparison publications current as of June 2026.
