Cyclone mitigation terms and conditions

RACQ Insurance - Cyclone Mitigation Terms and Conditions – As at 30 June 2022

Relevant RACQ Insurance Policies, Product Disclosure Statements and Applicable SPDS

1. RACQ Insurance Limited (ABN 50 009 704 152) (“RACQ”) is the issuer of various products which include RACQ Household Insurance.
2. An RACQ Household Insurance Policy can provider cover for:
   1. Combined Home and Contents Insurance;
   2. Home Insurance;
   3. Contents Insurance; and
   4. Renters Insurance.
3. Contact our stores, agencies or phone 13 1905 to obtain a copy of the PDS and any applicable SPDS for the RACQ Household Insurance Policy or obtain a copy online here.

Eligibility for the Cyclone Mitigation Discount and Structural Changes required to insured Homes

1. A Cyclone Mitigation Discount is available for eligible RACQ members who:
   1. Either own or rent a property at selected postcodes in North Queensland where:
      1. the Home was built prior to 1 January 1985 (the Home);
      2. and are determined by us to be eligible for the discount in accordance with the below; and
   2. Have a current RACQ Household Insurance Policy or who are making an application for a RACQ Household Insurance Policy with respect to the Home; and
   3. the Home which is owned or rented has undergone eligible structural changes described in these terms and conditions; and
   4. make an application for the Cyclone Mitigation Discount through the online form here, or call us on 13 1905, or visit an RACQ Store.

[“Eligible RACQ Members”]

1. If we determine you are eligible for the discount, the discount will be applied from policy inception date of the current policy period or from the date that the structural change was implemented, whichever is earlier.
2. For the purposes of clause 4(c) of these terms and conditions, one or more of the following are eligible structural changes:
   1. The installation of opening protection, such as roller door bracing and roller shutters for windows on all doors, windows and roller doors in the Home; or
   2. The installation of roof strapping, where all the listed strapping is completed on the Home:
      1. Tying down roof battens to trusses and rafters; and
      2. Tying down roof battens to rafters; and
      3. Tying down roof trusses to wall frames.
      or
   3. The installation of an over-batten system (i.e. steel plates fitted over the roofing material and held down to the foundations outside the main walls by tie rods and turnbuckles) on the Home; or
   4. A complete roof replacement on the Home (note that a roof re-screw is not considered an eligible structural change for the purposes of these terms); or
   5. A complete retrofit to upgrade the home to comply with current building codes. The retrofit must have received relevant local council approval.

[“The Structural Changes”]

1. By applying for a Cyclone Mitigation Discount, Eligible RACQ Members are verifying that one, or more, of the Structural Changes to the Home have been undertaken and that the RACQ member has complied with their duty to take reasonable care not to make a misrepresentation as set out in the PDS and applicable Supplementary PDS for the RACQ Household Insurance Policy regarding the condition of the Home.
2. The offer of a premium discount to an Eligible RACQ Member is subject to the Structural Changes having been undertaken and is at the absolute discretion of RACQ.

Calculation of the Cyclone Mitigation Discount

1. An RACQ member may be entitled to a range of discounts in addition to the Cyclone Mitigation Discount on their Household Insurance Policy. After applying any other discounts a member may be eligible for, the Cyclone Mitigation Discount will be consecutively applied last (that is the Cyclone Mitigation Discount will be applied on the already discounted premium). RACQ may apply rounding in calculating the premium.
2. The Cyclone Mitigation Discount will not be applied to additional premiums arising from your choice to pay premiums by monthly instalments. The discount will be applied to any government statutory charges such as GST and Stamp Duty that are included in the cost of your insurance.
3. The applicable Cyclone Mitigation Discount will range from 5% to 20% subject to the extent and amount of the Structural Changes which have been implemented to the Home. The maximum Cyclone Mitigation Discount which can be applied is 20%.

Variation to Cyclone Mitigation Discount and settlement of Claims made on the Policy

1. In the case of an Eligible RACQ member varying any details on the policy (such as moving insured address) then the premium and Cyclone Mitigation Discount may need to be recalculated and/or eligibility for the discount may need to be reassessed.
2. RACQ is entitled to discontinue this discount at any point in time.
3. RACQ is entitled to extend an offer at its discretion to other RACQ members.
4. If, at the time a claim is made on an RACQ Household Insurance Policy, it becomes known that the Structural Changes to the Home were not completed and/or the RACQ member was in breach of their duty to take reasonable care not to make a misrepresentation then RACQ reserves its right to either avoid the insurance contract, or reduce the amount which it will pay for the claim, in accordance with the PDS, applicable SPDS and the provisions of the Insurance Contracts Act 1984 (Cth).

RACQ Privacy Policy

1. RACQ collect, process, use and disclose information about RACQ members in accordance with our Privacy Policy, which can be viewed here.

Jurisdiction and applicable law

1. These Terms and Conditions are governed by the laws of Queensland. You irrevocably submit to the non-exclusive jurisdiction of the courts of Queensland, and the courts competent to hear and determine matters in Queensland.