THEFT AT RENTALS

 Discovering that a theft has occurred at your rental property can be a little daunting. It puts you through an emotional roller coaster and then comes the feeling of being violated, insecurity and then there's the frustration to deal with.

If you have had a theft at your rental property you will need to sort a few things out.

Where a break-in has occurred, you will need to secure the premises - this is a requirement in your landlord insurance policy (acting to prevent further loss) which may mean boarding up a broken window or door or arranging for a locksmith to fix a broken lock.  Be sure to document with photos and/or video the damage before you undertake temporary or urgent repairs. EBM Rent Cover policyholders do not need to seek approval for emergency repairs prior to having them carried out - just keep all receipts and tax invoices for the claim. (that's why I always use EBM for the landlord's insurance) Keep any damaged goods as proof of loss too - unless they pose a health or safety risk, in which case document them well before you dispose of them.

It is a good idea to get in touch with your landlord insurance provider as soon as you are made aware of the theft. The team members of the insurance company will let you know what is and isn't covered based on your policy and guide you through what needs to happen so that you meet your cover obligations and have the best chance of making a successful claim. (I can tell you that EBM is exceptional on this our PM girls never have any trouble dealing with the Team Members at EBM)

Of course, you would make a police report out as you will need to let your insurer know what has been damaged during the break-in and what has been stolen. The police will advise you o the necessary information to provide for their report and your insurer will let you know what they need from you. (there will be a report number required)

Heads up: If your tenant's possessions have been stolen, they will need to make out their own report as they will need to claim against their own insurance. Their belongings are not going to be covered under your landlord insurance.

You must check with your insurer about your next steps. In some cases, you will be required to obtain quotes for the repairs and replacements. In other cases, a loss adjustor maybe appointed. Do not organise non urgent repairs or replace items until you have checked with your insurer - unauthorised repairs could put you out of pocket and slow down the settlement of your claim. I am covered by EBM RentCover Ultra - I have never had any trouble with their Team Members (mind you by Property Managers handle the claims anyway)

The type of policy you have and who committed the theft is really important.

Say someone who is not your tenants steals from your rental property. If you have a landlord and contents-only police (like RentCover Ultra), you are likely covered for contents following theft (this includes any household items that are let with the property). With a contents-only policy, any damage or theft to the building structure itself won't be covered, for example the cost to replace a broken window or damaged door would not be covered. Any claim for loss or damage to the building would need to be made under another policy, such as a separate building policy or strata insurance, if applicable.

When it comes to short-stay rentals, which are usually offered fully furnished and fully equipped, all the contents you own and provide for the guests maybe covered for theft under a ShortTerm policy. A recent EBM RentCover claim involved an Airbnb guest made off with more than $4,500 in entertainment equipment at the end of their stay.

If you have a policy that covers both building and contents (like RentCover Platinum) you are likely to be covered for loss or damage to both fixed items and the building. While it may seem unlikely that someone could steal an entire building, thieves can and do steal items that are considered part of the building structure, such as valuable metal materials like copper wiring or pipes. In fact, EBM settled a claim for $9,000 which included the theft of two air conditioning units and copper piping. If the landlord only had a contents policy, the theft of the air-cons and piping would not have been covered as these are part o the building structure.

Regarding coverage for theft aside from the above it is important to know that only the contents that the landlord owns at the rental are protected. Tenants need their own contents insurance as their personal belongs are not covered by the landlord insurance policy.

It is also important to note that theft can occur not only by the burglars but also by the tenants. Sadly, tenants sometimes make off with items from the rental property. Depending on the policy you have, you may be covered for theft by the tenant. Chat to your insurer about whether you are covered and for what items. What I have found is EBM RentCover automatically includes theft by the tenant, covering specific items. 

Your claim maybe jeopardised if you failed to meet your legal obligations and conditions outlined in your insurance policy (please read the policy carefully) For example, if you failed to install the legally required security measures at the property, making it easier for a burglar to gain access, or if you failed to secure the property after the initial break-in, leading to subsequent thefts occurred at the premises, these claims may be reduced or even denied.

Fortunately, if your property is rented your Property Manager will handle all this for you so your stress is a lot less.  Time and time again I hear people say I don't need landlord's insurance UNTIL YOU DO !!

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!