Theft at rentals – what to do

Being a victim of theft can be very confronting. Here’s what you need to know from an insurance perspective.    

Discovering that a theft has occurred at your rental property can be a little daunting. There’s the emotional side to deal with (insecurity and frustration) and the practical aspects to contend with.

If there has been a theft at your rental property, you will need to sort a few things out.

Secure the premises

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 RentCover policyholders do not need to seek approval for emergency repairs prior to having them carried out – just keep receipts and tax invoices for the claim. Keep any damaged goods as proof of loss too – unless they pose a health or safety risk, in which case document them well before disposing of them. 

Advise your insurer

It is a good idea to get in touch with your landlord insurance provider as soon as you are made aware of the theft. Our Expert Care team members can 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.

Report the crime to police

If you intend to make a claim on your insurance (Finder says one in three thefts go unclaimed), you need to report the theft and obtain a crime or Police Report number (this needs to be submitted with your claim).

Take an inventory

When making the police report 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 on  the necessary information to provide for their report , and your insurer will let you know what they need from you.  

Heads up: If your tenants’ possessions have been stolen, they will need to make their own report so they can claim on their insurance. Their belongings are not covered under the landlord’s insurance. 

Next steps

Check with your insurer about the next steps . In some cases, you will be required to obtain quotes for the repairs and replacements. In other cases, a loss adjustor may be appointed. Do not organise non-urgent repairs or replace items until you’ve checked with your insurer – unauthorised repairs could put you out of pocket and slow down the settlement of your claim. If you are covered by EBM RentCover, our claims specialists will let you know what you need to do.

Are you covered?

There are a few variables that will help determine whether you are covered for theft at your rental property: 

• the type of policy you have 

• what that policy covers 

• what was stolen 

• by whom it was stolen 

• the circumstances that contributed to the theft. 

Let us explain… 

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

Say someone who is not your tenant steals from your rental property. If you have a landlord and contents-only policy (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 guest use may be covered for theft under a ShortTerm policy. A recent EBM RentCover claim involved an Airbnb guest make 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, we 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 of 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 belongings are not covered by the landlord insurance policy.  

It is also important to note that theft can occur not only by burglars but also by 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. EBM RentCover automatically includes theft by the tenant, covering specific items. If you have a policy with EBM RentCover and want to know more, call our team on 1800 661 662. 

When it comes to the circumstances of the theft, there are some scenarios where a claim may be denied. For example, if the landlord or their family committed or were complicit in the theft, the claim would be denied.

Additionally, your claim may be jeopardised if you failed to meet your legal obligations and conditions outlined in your insurance policy. 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. 

Last words 

Being a victim of theft can be confronting, even if you don't have a strong personal connection to your investment property – there is a fair bit you need to do. While dealing with the aftermath of the theft is not a task any landlord or their property manager relishes, the team at EBM RentCover is here to help by guiding you through the claims process.   

If you have any questions about cover or claims, give our friendly team a call on 1800 661 662 or click here for more ways to reach us.