Discovering a theft has occurred at a rental you manage is always unwelcome – there are notifications to make, inspections to undertake, reports to fill in. There is also a good chance you will need to assist your landlord client with their insurance claim, so it helps to be prepared.
Stats from the ABS revealed that in FY23, more than 185,000 households experienced a break-in, with something stolen 69 per cent of the time and 48 per cent having property damaged.
While the number of break-ins is falling, there are still more than 500 happening every day.
Investment properties are not immune. In fact, rentals not only face the prospect of theft from a break-in, but the risk of tenants fleeing with property that isn’t theirs.
In 2023, EBM RentCover settled 34 claims for theft from intruders (with a value of around $100,000) and four from tenants (valued at about $10,000).
Theft at rentals
When a burglar breaks into a property, you might expect that they would only take valuables they can easily carry – jewellery, cash, electronics and the like – which would usually mean it would be the tenants’ property stolen.
But that isn’t always the case. Sometimes they make off with some of the landlord’s property, however great the challenge.
One recent claim involved a thief hurling two bricks through a window to gain access.
Once inside they managed to pull out the air conditioners and then, for good measure, ripped out some copper piping – stealing around $7,500 worth of goods and materials.
The claim topped $9,000 once the cost of repairing the smashed windows and replacing the locks was factored in.
In another claim recently settled, the hot water system was stolen from a property that was unoccupied to allow some maintenance required for its sale to be carried out.
The agent, who was regularly checking on the property, noticed the system was missing and a claim for the $1,800 loss was made.
Even in the case of thefts where tenant property only is stolen (which isn’t covered by the landlord’s insurance of course) a claim for damage will often need to be made on behalf of the landlord.
Your landlord client may need your assistance with lodging a claim for broken windows or damaged doors, and for locks to be replaced.
If the theft was accompanied by vandalism, a more extensive claim may be on the cards.
While it is distressing enough for your landlords to think that a stranger broke into their rental and stole from them, it may be even harder to come to terms with the thief being their tenant or guest.
It isn’t that common, but it does happen, especially in short-term rentals.
EBM RentCover worked with one landlord who owned a short-term rental property and like many short-term rentals, the property was fully-furnished and fully-equipped with all the things a guest could need for their stay, including entertainment with a home theatre system, hyperboom, PlayStation 5, games and controller, and Wifi Pro.
Unfortunately for the landlord, the guest took quite a shine to that equipment – and took it with them when they left.
They also cleaned up and made off with the owner’s $1,200 Dyson vacuum. All up, the guest stole more than $4,500 worth of equipment, for which the landlord was compensated by their insurer.
Insurance and theft
Whether there is cover for theft at a rental property depends on the policy.
Most insurance policies that cover property protect against theft from third-parties (i.e. a burglar).
But for the owner to be protected against theft from a tenant, they will usually need a specialist landlord insurance policy.
Even then, not all landlord insurance policies cover theft by tenants – but EBM RentCover does.
All our policies (except Householders Rental) provide up to $70,000 to cover the loss of contents (including fittings and fixtures) due to theft by the tenant.
Where there is cover for non-fixed items (usually for fully-furnished properties including short-term), there is protection up to the value of the nominated sum insured.
Lodging claims for theft
If your landlord has suffered a theft at their rental, chances are you’ll need to assist them with their insurance claim.
To help streamline the process, it helps if you have all the documentation and information at hand. Before submitting a claim be sure you:
- know what date the theft occurred
- have reported the theft to police – you will need to advise what date the report was made and the report number
- can provide a statement about what happened
- can advise how the thief gained entry to the property, for third-party theft claims
- have complete details of what was stolen
- have, in the case where damage has occurred:
- two quotes (originals) for damage repairs
- original tax invoices for any urgent damage repairs undertaken to make safe
- photos of damage
- causation report
- all property inspection reports
- have also, in the case where damage has occurred, and loss of rent was suffered as a result:
- a copy of the tenancy or short-term agreement
- tenant rental ledger or proof of rent (for short-term)
- have, in the case of contents claims:
- an inventory report
- proof of ownership (e.g. manuals, receipts, valuations, photos, etc.)
- have, in the case of theft by tenant claims:
- contact details of the tenant/guest (e.g. phone number, email address)
- copy of the lease or short-term agreement
- breakdown of bond deductions (if applicable)
You will need to include these details and documents as part of the claim.
Of course, your landlord insurance provider can also assist you and provide guidance on what to do and how to make a claim.
