Rental home broken into: Steps to take

New to Real Estate · Member since 2021 · 18 posts · 4 votes

Hi there! I'm a new BP user and just had my first property damage. Someone broke into my rental property in Phila, broke a window and damaged the front door. Nothing stolen as far as I can see. My Home insurance deductible likely won't even cover the damages so it's probably out of pocket expense. I made a claim anyway. My tenant made a police report. I can either wait for the insurance claim or fix it all ASAP using people I know. Is there anything I should have done differently or do differently in this situation? Did I take the right steps? Will my insurance rate go up now that I made a claim?

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Account Closed

Member since 2020 · 984 posts · 1k+ votes

It sounds like an inside job to me where the tenant broke into the house because the tenant did not have the keys, or someone who knows the tenant broke into the house.

There is an old theory, saying, belief or whatever you call it that a high percent of the time a house is broken into it was someone who knew the victim.

It sound fishy to me that the keys were outside and nothing in the house was stolen. What type of criminal breaks into a house and doesn't take a computer, television, microwave or something that can be sold for a few dollars for a heroin fix.

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
5y
If the key was left outside, why didn't they use that to gain access? I'd take photos to go with the police report and just get it fixed. As for the missing key, is the tenant sure it was taken. Whether the key was in the house or outside, the thief could still have taken it. I'd re-key the lock.
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Kris A.
OP
New to Real Estate · Member since 2021 · 18 posts · 4 votes
5y
Originally posted by @Theresa Harris:
If the key was left outside, why didn't they use that to gain access? I'd take photos to go with the police report and just get it fixed. As for the missing key, is the tenant sure it was taken. Whether the key was in the house or outside, the thief could still have taken it. I'd re-key the lock.

Yup that's what I'm doing, rekeying it anyway to be safe. But that does beg the question, maybe they didn't see the key in my tenant's bag along with her wallet? Anyway, report was filed and claim made but now i'm regretting the claim.

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Scott M.
Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
5y
I know everyone is different so not saying what works for me works for you but I would have never filed an insurance claim over a window and door. What is your deductible? If it is so low to cover this you should consider getting your deductible raised as it will really reduce your insurance premiums. In fact, in a year or two you should save enough to pay for this.
As this is a tenant occupied home...if this was ours we would make sure photos were taken and the tenant filed a police report. As the tenant it really is their responsibility. Would have never involved the insurance co. As for changing the locks the tenant is the one who lost the key so I would argue it is their responsibility, and I would hope your lease makes that clear, if not you should change it. They lose key, they pay for rekey.
If it isn't in your lease and they are pushing back nothing wrong with splitting it. Though it is clearly tenant fault. And yes, you 100% need to have the home rekeyed.
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
5y
Originally posted by @Kris A.:
Originally posted by @Theresa Harris:
If the key was left outside, why didn't they use that to gain access? I'd take photos to go with the police report and just get it fixed. As for the missing key, is the tenant sure it was taken. Whether the key was in the house or outside, the thief could still have taken it. I'd re-key the lock.

Yup that's what I'm doing, rekeying it anyway to be safe. But that does beg the question, maybe they didn't see the key in my tenant's bag along with her wallet? Anyway, report was filed and claim made but now i'm regretting the claim.

If the damage is less than the deductible, call them back and cancel it.

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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
5y
Fix them yourself. Learn how, not that hard. Change the locks yourself so that you look good.
My cynical mind is asking if the tenant was involved in this at all.....?
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Kris A.
OP
New to Real Estate · Member since 2021 · 18 posts · 4 votes
5y
Originally posted by @Scott M.:
I know everyone is different so not saying what works for me works for you but I would have never filed an insurance claim over a window and door. What is your deductible? If it is so low to cover this you should consider getting your deductible raised as it will really reduce your insurance premiums. In fact, in a year or two you should save enough to pay for this.
As this is a tenant occupied home...if this was ours we would make sure photos were taken and the tenant filed a police report. As the tenant it really is their responsibility. Would have never involved the insurance co. As for changing the locks the tenant is the one who lost the key so I would argue it is their responsibility, and I would hope your lease makes that clear, if not you should change it. They lose key, they pay for rekey.
If it isn't in your lease and they are pushing back nothing wrong with splitting it. Though it is clearly tenant fault. And yes, you 100% need to have the home rekeyed.

Yup, police report was filed and photos taken. What is the utility of the photos of I don't file with the insurance claim? For damages when they move out? Also, what sort of language would have been used in the lease for tenants to cover this type of key issue? I have a standard issue PA lease agreement. I am going to rescind the insurance claim because I can cover the damages.
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Kris A.
OP
New to Real Estate · Member since 2021 · 18 posts · 4 votes
5y
Originally posted by @Scott M.:
I know everyone is different so not saying what works for me works for you but I would have never filed an insurance claim over a window and door. What is your deductible? If it is so low to cover this you should consider getting your deductible raised as it will really reduce your insurance premiums. In fact, in a year or two you should save enough to pay for this.
As this is a tenant occupied home...if this was ours we would make sure photos were taken and the tenant filed a police report. As the tenant it really is their responsibility. Would have never involved the insurance co. As for changing the locks the tenant is the one who lost the key so I would argue it is their responsibility, and I would hope your lease makes that clear, if not you should change it. They lose key, they pay for rekey.
If it isn't in your lease and they are pushing back nothing wrong with splitting it. Though it is clearly tenant fault. And yes, you 100% need to have the home rekeyed.

Also, what deductible /coverage would you recommend? Currently I have $1k deductible for a ~300k policy. My premiums are ~$1200/yr. Too much?
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Account Closed
Member since 2020 · 984 posts · 1k+ votes
5y
It sounds like an inside job to me where the tenant broke into the house because the tenant did not have the keys, or someone who knows the tenant broke into the house.
There is an old theory, saying, belief or whatever you call it that a high percent of the time a house is broken into it was someone who knew the victim.
It sound fishy to me that the keys were outside and nothing in the house was stolen. What type of criminal breaks into a house and doesn't take a computer, television, microwave or something that can be sold for a few dollars for a heroin fix.
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
5y
People are making comments about "keys left outside" and "nothing taken" but I don't see where that information was shared. I really don't like this new forum design.
I am also skeptical of the story. If someone broke in, they would take items of value unless it's someone the tenant knows that broke in for something specific like drugs or cash. I wouldn't be surprised if the tenant couldn't find their keys, tried to jimmy the door, then finally broke the window to get in. Then they staged it to look like their keys were outside the home to throw off suspicion.
But, you can't do anything without proof. Make the repairs. Keep a close eye on the tenant because something doesn't smell right here. If there are any red flags (late rent, messy house, lack of communication, etc.) then I would try to get them out as soon as possible.
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Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
5y
@Kris A. Have you seen a copy of the police report to see what it says, you need it even if you withdraw the insurance claim( I would). I would put the re-keying on them.
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Kris A.
OP
New to Real Estate · Member since 2021 · 18 posts · 4 votes
5y
Thanks everyone. I agree the story is a little suspicious. Nevertheless, what kind of language should I include in my lease agreement so the tenants cover this type of damage for the locks (considering it was in the context of someone taking the key)? Also is my insurance policy reasonable?
1 Reply
Kris A.
OP
New to Real Estate · Member since 2021 · 18 posts · 4 votes
5y
Ancillary question: Do you invest in home alarm systems for your rentals? I know they can be kind of pricey, but if the cash flow affords it do you get one for all your properties (or ones in not so great neighborhoods)?
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Kris A.
OP
New to Real Estate · Member since 2021 · 18 posts · 4 votes
5y
Originally posted by @Nathan Gesner:
People are making comments about "keys left outside" and "nothing taken" but I don't see where that information was shared. I really don't like this new forum design.
I am also skeptical of the story. If someone broke in, they would take items of value unless it's someone the tenant knows that broke in for something specific like drugs or cash. I wouldn't be surprised if the tenant couldn't find their keys, tried to jimmy the door, then finally broke the window to get in. Then they staged it to look like their keys were outside the home to throw off suspicion.
But, you can't do anything without proof. Make the repairs. Keep a close eye on the tenant because something doesn't smell right here. If there are any red flags (late rent, messy house, lack of communication, etc.) then I would try to get them out as soon as possible.

I agree it is suspicious. They said they left their entire bag outside, so their wallet is gone too.
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- Nathan GesnerBusiness Member
  Moderator
  Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
  5y
  Originally posted by @Kris A.:
  Originally posted by @Nathan Gesner:
  People are making comments about "keys left outside" and "nothing taken" but I don't see where that information was shared. I really don't like this new forum design.
  I am also skeptical of the story. If someone broke in, they would take items of value unless it's someone the tenant knows that broke in for something specific like drugs or cash. I wouldn't be surprised if the tenant couldn't find their keys, tried to jimmy the door, then finally broke the window to get in. Then they staged it to look like their keys were outside the home to throw off suspicion.
  But, you can't do anything without proof. Make the repairs. Keep a close eye on the tenant because something doesn't smell right here. If there are any red flags (late rent, messy house, lack of communication, etc.) then I would try to get them out as soon as possible.
  
  I agree it is suspicious. They said they left their entire bag outside, so their wallet is gone too.
  
  Next up: "My rent's going to be late because someone stole $800 cash out of my wallet!"
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Mark S.
Real Estate Investor · Saint Paul, MN · Member since 2017 · 543 posts · 474 votes
5y
@Kristen C. Do NOT file a claim for something like this, or anything very minor - and yes this is minor. Even if you do not end up getting any reimbursement from the insurance carrier it will be reported in the national database (LexisNexis) as a claim filed and will count against you for underwriting purposes.
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Kris A.
OP
New to Real Estate · Member since 2021 · 18 posts · 4 votes
5y
Originally posted by @Mark S.:
@Kristen C. Do NOT file a claim for something like this, or anything very minor - and yes this is minor. Even if you do not end up getting any reimbursement from the insurance carrier it will be reported in the national database (LexisNexis) as a claim filed and will count against you for underwriting purposes.

Thanks, I cancelled it. So what ARE appropriate claims to file? And I guess I don't understand the purpose of insurance if theyre going to count against me everytime I *need* it?

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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
5y
Originally posted by @Kris A.:

And I guess I don't understand the purpose of insurance if theyre going to count against me everytime I *need* it?

Now you're getting it. You thought insurance was something you could actually use.....? :-) You save it until something huge happens, and never touch it for small or medium things, because they will keep dinging you.....

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Mark S.
Real Estate Investor · Saint Paul, MN · Member since 2017 · 543 posts · 474 votes
5y
@Kristen C. Property insurance is not intended for minor issues, it is for more catastrophic major unforeseen events. And from an underwriting perspective, someone who files claims, paid or unpaid, with frequency is likely to be a risk that is unprofitable . Before anyone jumps on me and says insurance companies shouldn’t be profitable- how will they pay for your new roof or million dollar lawsuit if they don’t have any money in reserve? (No I don’t work for an insurance company)
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Kris A.
OP
New to Real Estate · Member since 2021 · 18 posts · 4 votes
5y
Originally posted by @Mark S.:
@Kristen C. Property insurance is not intended for minor issues, it is for more catastrophic major unforeseen events. And from an underwriting perspective, someone who files claims, paid or unpaid, with frequency is likely to be a risk that is unprofitable . Before anyone jumps on me and says insurance companies shouldn’t be profitable- how will they pay for your new roof or million dollar lawsuit if they don’t have any money in reserve? (No I don’t work for an insurance company)

Thanks for the explanation!

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Fred Cannon
Rental Property Investor · St Augustine, FL · Member since 2019 · 265 posts · 279 votes
5y
@Kristen C. I have put all battery operated digital locks on my doors and change the combo with each tenant. Much easier than dealing with keys and changing locks every time a new tenant moves in or out.
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Fred Cannon
Rental Property Investor · St Augustine, FL · Member since 2019 · 265 posts · 279 votes
5y
@Kristen C. You need to change to an electronic key pad. Problem solved
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Kris A.
OP
New to Real Estate · Member since 2021 · 18 posts · 4 votes
5y
Originally posted by @Fred Cannon:
@Kristen C. You need to change to an electronic key pad. Problem solved

Will do. Do you also suggest spending the money on an electronic alarm system?

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Fred Cannon
Rental Property Investor · St Augustine, FL · Member since 2019 · 265 posts · 279 votes
5y
@Kristen C. Not really unless you are in. High crime area.
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Scott M.
Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
5y
Photos are for documentation. You should document everything for yourself first. If it comes in handy for the police, for insurance, for tenant move-out later then great, you already have it documented for yourself.

The deductible is a personal choice. This is a cost/benefit thing and you need to do what is right for you. I still think filing a claim for a window and door that shouldn't be much over 1K is a waste of insurance. Your rates will go up and you will end up paying far more for the work over the years in increased insurance then you would covering it out of pocket. But again, we are all different. We have a lot of clients that use 2,500 and a lot that use 5,000.

No way to tell if your premiums are to high with this little info. No idea about the home, the area etc....

I think I contributed to @Nathan Gesner issue with where the key was....I read "tenants keys that was left precariously outside" and didn't comprehend "the bag" part. I thought the tenant left the key outside of the home. Sorry Nathan!

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Karla Simmons
Vacaville, CA · Member since 2019 · 218 posts · 140 votes
5y
@Kristen C.
I have filed insurance claims for fences that blew down during storms. Fences are expensive.
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Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
5y
Yup. I believe it was all big made up lies. An inside job and they simply got locked out and broke the door and broke the window trying to get in themselves.
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