New investor here - my contractor informed me yesterday that my house he's rehabbing was vandalized. They took many tools that totals approx. 10K. He's asking me to contact my insurance to make a claim, however this will obviously impact my rates in the long term. What would you do? He told me he was licensed and insured before I hired him.
Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
5y
He should use his own insurance as you didn't do anything negligent like leave the door unlocked; it's not your fault.
This situation is no different than if someone breaks into a rental and steals from your tenant; it's not the landlord's responsibility which is why I urge tenants to get renter's insurance.
My handymen/contractors typically take the majority of their tools home each and every day - and always the expensive tools. Your contractor should have done the same.
Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
5y
He should use his own insurance as you didn't do anything negligent like leave the door unlocked; it's not your fault.
This situation is no different than if someone breaks into a rental and steals from your tenant; it's not the landlord's responsibility which is why I urge tenants to get renter's insurance.
My handymen/contractors typically take the majority of their tools home each and every day - and always the expensive tools. Your contractor should have done the same.
@Megan Dettenmaier My contractor (he’s a personal friend too) brags to me about how much insurance he has on his various tools he has stored in different locations for different types of work. And constantly reminds me to always splurge on as much insurance as I can get because he had a building burn down once.
If your contractor had tools stolen this is something he should claim on his insurance for sure.
Developer · NC · Member since 2019 · 211 posts · 112 votes
5y
I'm a contractor. Only a lazy contractor leaves his tools around at the jobsite. Jobsites get broken into, so if you want to risk your tools getting stolen to save the extra 20m it takes to load and unload them each day that's your own problem. Even if your insurance covered it, your rates would go up for his negligence.
New investor here - my contractor informed me yesterday that my house he's rehabbing was vandalized. They took many tools that totals approx. 10K. He's asking me to contact my insurance to make a claim, however this will obviously impact my rates in the long term. What would you do? He told me he was licensed and insured before I hired him.
If you stole his tools you are responsible to replace them. Obviously you didn't steal his tools, so the point is he is "blame shifting". He is trying to make you responsible for something he did. It's very common in today's society to blame others for something they had nothing to do with, so you have to watch out for it and Not assume the responsibility.
Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
5y
You should only be responsible if you agreed to store his tools on your property for some benefit to you. It’s a contractors job to properly secure his tools and equipment when not being used.
Investor · Miami, FL · Member since 2017 · 229 posts · 271 votes
5y
I'm going to go the opposite way here. I've got a great contractor that I would trust with my life. Up until recently he used to leave some (not all) of his tools at my rehabs and just lock up at the end of the day. Unfortunately someone did break in once and walked off with about 700 worth of his things. Was it his mistake? Absolutely. Should he have always taken his valuables and tools with him every night? Absolutely. He admitted it and didn't once even ask me about reimbursement or covering anything. But with all that said I still cut him a check for about half the cost anyways. Why? Relationship, relationship, and relationship. He's a guy who always shows up and gives me no BS quotes which I'm happy to pay no arguments because his prices allow me to truly not be there, not deal with headaches, not hear excuses about subs not working, not discuss materials and not worry that a six week job will take 6 months. He made a mistake. We all do. We just have to make sure we implement processes so it doesn't happen again. Everyone wants to go hard ball process and procedure no compromise with contractors but the truth is that for a lot of us small business investors a couple hundred dollars to a tried and trustworthy member of your team will pay dividends ten fold over the course of your REI career. Hahahaha ok now everyone can let me have it fit for being a compromising, unprofessional......
Investor · Miami, FL · Member since 2017 · 229 posts · 271 votes
5y
Just wanted to also mention that I do acknowledge that 10k is not a couple hundred and helping a solid team member does not mean turning a good deal bad.
I'm a contractor. Only a lazy contractor leaves his tools around at the jobsite. Jobsites get broken into, so if you want to risk your tools getting stolen to save the extra 20m it takes to load and unload them each day that's your own problem. Even if your insurance covered it, your rates would go up for his negligence.
BINGO!!!
Contractor here too. This is all on him. If he is the irresponsible I find it hard to believe he had 10k of stuff there. I would have to unload my cabinet shop to have that kind of stuff on a job. Tell him to file a police report with the serial numbers of everything that was stolen. I bet he doesn't even have more than 2 numbers to give them.
Colorado Springs, CO · Member since 2020 · 2 posts · 1 vote
5y
@Megan Dettenmaier
Aside from RE I see these sort of questions all the time at work (home, auto, umbrella insurance) this is something you can claim out of the goodness of your heart but your contractor should claim this on their own coverage. Even if you wanted to claim it your insurer may decline the claim and still show it which would still raise your rates.
Rental Property Investor · Raleigh, NC · Member since 2016 · 10 posts · 5 votes
5y
@Megan Dettenmaier. He is responsible for his tools. He should claim it on his GL (general liability policy) as they can cover this theft exposure if he purchased the right coverage.
Rental Property Investor · Amityville, NY · Member since 2018 · 351 posts · 441 votes
5y
Contractor here, this is on him. Tell him that he should put the claim in to his insurance... (bet he doesn't have his tools insured)
10k is probably excessive but I had some tools stolen out of a truck one time and it wasn't the big ticket items it was the little $30-$50 hand tools that added up way more than I would have guessed. either way it's on him
Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
5y
@Megan Dettenmaier I have vacant property insurance on my rehab and it doesn't cover anything inside, just the structure. check your policy...point may be mute.
Sounds like a hustle to me. I think he’s trying to take advantage of you for whatever reason. Who is to say he didn’t have his buddy double back and pickup the tools later that night and now wants you to file an insurance claim.
Thanks all - I appreciate all of you chiming in - we've all been new at one point or another and your perspective(s) are helpful. This is my first job with this contractor. If you are in St. Joseph, MO and come across any of these things for sale on Craigslist, etc. pls message me.
As to the question about how it all added up to 10K - here are some of the things he reported to the police as stolen:
Investor · FL · Member since 2015 · 40 posts · 24 votes
5y
@Megan Dettenmaier
Sympathize with him and ask when and if he will be able to finish the job. He is "licensed and insured) (???) for a reason. That reason. Let him know however that you are willing to cooperate fully with police AND INSIST the police are called, a report is made, and you receive a copy.
NOTE: You'll probably need the police report to help prove he was the one who vandalized your property after you refused to give him an extra $10,000 for tools he currently has in the back of his own garage. Maybe.
@Mike Reynolds why take them with you? Bring a job box on site.
Unless its on a slab and you want to go through the trouble of bolting it to the concrete. What is to stop them from just carrying away the job box? Thiefs steal appliances all the time.
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
5y
Do not call your insurance rates will go up. It's his responsibility to have insurance on the tools. As mentioned above be polite and tell him you will fully cooperate with the police and that he should file a report. You want paperwork in case he comes to vandalize your property after you refuse to pay. A lot of these contractors are shady, it wouldn't even be unheard of if he had a buddy "steal" them and then tries to get you to pay.
Valencia, CA · Member since 2021 · 42 posts · 21 votes
5y
@Megan Dettenmaier I’m no expert, but my father is a contractor. His tools are an extension on his body, basically. Us kids have heard this from him as long as we could remember. He never even leaves his tools in his truck bed if he goes into a store! And he would NEVER leave them on a job site! That’s his livelihood. No tools - no job. And if you have tools that are important to your work, you will protect them. You will put them away and most certainly you will insure yourself.
He did have a few instances where his tools were stolen over the years and I remember the stress that came with that…because now he had to replace them.
I would be questioning the contractors work too.. Because this sounds like a try for a free ride. Morals and ethics? I’m sorry but I just see red flags everywhere with this one..
Springfield, IL · Member since 2012 · 5 posts · 1 vote
5y
@Megan Dettenmaier I’ve been in the RE business for longer than I care to remember. I can’t tell you how many times I have had subs or even GCs claim that their tools were stolen from my work site. In many cases they stole their own tools or their employees stole their tools. Bottom line. It’s not my problem and it’s not yours either.