The RAC was first founded in 1897. Then known as the Royal Automobile Club, its role was to promote automobilism.

In 1912, the RAC began to introduce roadside emergency telephone boxes around the UK and has since grown to become the country’s top breakdown cover provider.

Now, in 2023, the RAC offers a full range of financial products including numerous car insurance options, motorbike insurance, travel insurance, business insurance, and home insurance.

Who underwrites RAC home insurance?

RAC home insurance is arranged and underwritten by RAC Financial Services Limited.

What types of home insurance does RAC offer?

RAC offers the following types of home insurance:

  • Buildings insurance
  • Contents insurance
  • Combined buildings and contents insurance

RAC’s buildings and contents insurance is offered on one policy type, with a range of optional extras for full customisation.

What does RAC buildings and contents insurance cover as standard?

Depending on whether you want individual buildings or contents insurance, or a combined buildings and contents insurance policy, what will be covered will differ.

Buildings insurance covers the structure of your property. This includes things such as the doors, floors, windows, any permanent fixtures (e.g., a fitted bathroom or kitchen), and outbuildings such as a garage or shed.

Contents insurance on the other hand, covers the items that you’re able to take with you from the home. This includes personal belongings, curtains, carpets, light fittings, kitchen appliances, and more.

To help you decide whether you would like a sole or combined policy, the table below shows a sample of what RAC buildings and contents insurance covers.

RAC Buildings InsuranceRAC Contents Insurance
Cover against fire, explosions, storms, earthquakes, floods.Loss or damage to your contents caused by fire, theft or flooding
Escape of water cover (e.g., burst pipes)Damage to furniture, carpets, curtains and other items
Burglary and vandalismDamage to land loss of electrical goods, clothing and jewellery
Impact damage from vehiclesNew for old cover
SubsidenceGarden cover (includes cover for outside BBQ, lawnmower etc.)
Trees, aerials or satellite dishes falling on your property 
Damage to garage and outbuildings 
Alternative accommodation if your home is considered unsafe to live in 

What is not covered by RAC buildings insurance?

Although RAC offer comprehensive buildings insurance, there are some instances where cover does not apply on the policy. These instances include:

  • Pollution
  • General wear and tear
  • Damage caused by insects or vermin
  • DIY disasters or damage that has been caused by the policyholder (this can be covered if you take out Accidental Damage Cover as an optional extra).
  • Any loss or damage to your contents

Any further exclusions will be highlighted in your policy document.

What is not covered by RAC contents insurance?

Contents cover with RAC carries a number of exclusions, including:

  • Loss or damage caused by water overflowing because of taps being left on (this can be covered if you take out Accidental Damage Cover as an optional extra).
  • Damage caused by the policyholder, domestic pets, domestic employees, lodgers, paying guests or tenants
  • Damage to trees or branches of the surrounding area due to branches being cut back.
  • Loss or damage caused by pets or livestock
  • Loss or damage that occurs during any period where the home is unoccupied for a time beyond the permitted period.

Please note that further details on cover and exclusions will be printed in your policy document.

Optional extras

In addition to the cover you’ll receive with your buildings and/or contents insurance, RAC allows you to bolt-on some additional cover with optional extras. While these extras are designed to give you the freedom to customise your cover to make it as comprehensive as you would like, it is important to be aware that any add-ons you choose will increase the cost of your monthly or yearly premiums.

Home emergency cover

Provides cover for emergency repairs including bursting or sudden leakage of pipes, break-in or vandalism, failure of domestic hot water heating, blockage of soil or waste pipes, and removal of pest infestation including wasps nests, mice and rats. RAC will provide £500 per claim and provide access to a 24-hour call out service for which a tradesman on their panel will be sent out to assess and fix the issue.

Covers up to 350,000 in legal expenses for personal injury, employment, residential or consumer disputes. Also includes access to a 24-hour legal helpline.

Key cover

This optional extra provides cover for a 24-hour emergency helpline with access to an approved panel of locksmiths and allows £1,500 each year for the replacement of home and vehicle keys that have been lost or stolen.

No-claims discount

RAC states that they may offer a discount to policyholders who are yet to make a claim on either their buildings or contents insurance.

However, RAC state that this discount is not guaranteed and will be awarded on a case-by-case basis.

Defaqto rating

RAC’s sole level of cover has been awarded a five-star rating by Defaqto.

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