rental is vandalised
If your rental property is vandalised by someone who isn’t your tenant, here’s what you need to do.
It can be upsetting to find that your rental property has been intentionally damaged. After investing so much money and effort into your property, it’s disheartening to see someone cause such destruction. To ensure the damage is repaired quickly, it’s important to know the steps to take if you need to make a claim on your landlord insurance.
Vandalism explained.
Vandalism refers to the intentional defacing, damaging, or destruction of property without the owner's consent. This includes acts such as graffiti, arson, smashing windows, breaking locks, kicking or punching holes in doors and walls, destroying or knocking down fences, and various unsavoury and unhygienic acts at the premises.
Vandalism at rentals.
When it comes to damage at a property, the principle is that the person responsible for causing the damage is also legally responsible for repairing it.
Vandalism at a rental can be caused by the tenant (including their children or guests) or by a third party (e.g., a stranger). In this article, we will focus on third-party vandalism.
If a rental is damaged by third-party vandalism, the cost of repair or replacement is usually covered by insurance. Depending on the type of damage, your property, and the policy you have, it might be covered under either your landlord insurance or building insurance (or a combination of both). For landlord insurance, check the ‘insured events (malicious acts)’ section of your policy to see what is and isn’t covered.
What do you need to do if your rental has been vandalised?
Here are six steps for you (or your property manager acting on your behalf) to follow:
Step one: Inform the police.
Any vandalism should be reported to the police. You’ll need to carry out a preliminary assessment of the damage to provide to the police, but only enter the premises if it is safe and you are legally allowed to do so (check your jurisdiction’s residential tenancy legislation for details). Keep in mind that you will need a police report to make a claim on your insurance.
Step two: Inspect the property.
Once you’ve reported the vandalism and it is safe and permissible to enter, conduct a detailed inspection of the property. If there are tenants in residence, arrange the inspection with them if possible. Depending on the nature of the vandalism, inspecting the property may be considered an emergency, and under state/territory tenancy legislation, you may not need tenant permission to enter. During the inspection, document all the damage thoroughly. Take plenty of photos and videos, and be sure to save the files.
Step three: Act to prevent further loss.
It is a condition of insurance that the policyholder (or their representative) must take reasonable steps to prevent further loss. In the case of vandalism, this may involve actions such as boarding up broken windows, arranging for locks or external doors to be replaced, or installing safety fencing around a damaged structure.
You should arrange any emergency repairs needed to ensure the premises and your tenants are safe. Note: EBM RentCover policyholders do not need prior approval to arrange emergency repairs but must keep all tax invoices for the repairs to submit as part of their claim.
If the premises become uninhabitable, your tenants may need to temporarily relocate. Typically, you are not financially liable for the costs of this temporary relocation. If you choose to cover these costs, be aware that your landlord insurance is unlikely to reimburse them. Since the premises is uninhabitable, tenants generally will not be required to pay rent for the period they cannot stay at the property. Depending on your insurance policy, you may be able to claim for loss of rent.
Step four: Notify your insurer.
As soon as possible, notify your insurance provider about the vandalism at the property. Your insurer will guide you through the process and provide instructions on how to make an insurance claim.
Step five: Arrange repairs.
Be sure to follow any instructions from your insurer regarding quotes and arranging repairs. The insurer may send a loss adjuster to assess the cause and extent of the damage. Generally, non-emergency repairs need to be approved by the insurer before any reinstatement work is carried out (so avoid authorising repairs or purchasing replacement items until you receive approval). If you have an EBM RentCover policy, our Claims Specialists will provide further guidance.
Step six: Submit your claim.
Once the repairs have been made and your tenants are back in residence (if they needed to temporarily vacate), you can submit your insurance claim. Depending on the damage that was caused, your claim may be for repairs and replacement costs, and also loss of rent. Be sure to submit all the documentation required, including evidence to support your claim (including photos and video, and the police report) and receipts for any repairs, replacements or services to reinstate the property. Your claim will then be assessed and settled.
A question of responsibility.
You might be wondering about the responsibility aspect. As part of the insurance claims process, a loss adjuster is often assigned to investigate the loss. Their assessment will typically include determining the cause of the damage.
Legally, the insurer has the right to pursue the person responsible for the damage to recover the costs. If the vandalism’s perpetrator is identified and located, the insurer may seek compensation from them.