Jewellery theft victims who lodged a claim under their home and contents policy have lost a dispute over the level of cover provided for the stolen valuables.

The complainants said jewellery worth more than $20,000 was taken and asked RAC to pay $14,999 for their loss, saying the insurer had agreed to increase the limit to that level before the policy commenced on August 30, 2018.

RAC noted that there was no mention of the alleged sum in any of the policy documents and limited the amount of coverage to $5000.

The Australian Financial Complaints Authority (AFCA) sided with RAC, saying the insurer clearly indicated in its policy statements and subsequent renewals that the complainants' jewellery cover was $5000.

The complainants said that on August 9 2018, they asked RAC to raise the limit to $20,000 before compromising on $14,999.

On August 11 2018, the insurer sent the claimants a product disclosure statement that mentioned no increase and showed the cover amount to be $5000. The complainants renewed the policy twice, with the cover amount remaining the same.

On August 26 2020, they contacted RAC to make changes to the sum of the insured building and the excess to reduce premium costs but made no other changes to their policy.

AFCA said there had been no evidence of the complainants asking for the level to be increased before the theft and RAC was within its rights to limit cover to $5000.

The complainants also said they lost cash and gift cards worth more than $6000 and passports and other documents that will cost $3000 to replace.

The insurer said it would pay up to $200 for the stolen cash and gift cards, and up to $500 for the documents, in accordance with their policy, in a decision also supported by AFCA.

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