Burglary at tenant turnover

[Douglas Brown]

I'm a relative newcomer to RE investment (2 years, 2 properties in Indianapolis) and this was my first tenant turnover.  When the contractor went to make his final inspection of the turnover repairs (nothing major ~$200) he found the property had been broken into and the furnace, A/C, water heater and kitchen range stolen: about $6.5 K loss.  Discussion with my PM and insurance broker revealed that they are both aware of other instances similar to this one.  This has gotten me to wonder: How common is this type of event? 

It seems to me that, given the timing just as the repairs were finished and the level of expertise required to carry out the removal of this equipment, this must be a fairly well organized operation.  This was no smash and grab.  The property must have been under some kind of surveillance.  I have been assured that the contractor had not posted any external advertising signs and the house was in no way derelict.  The suggestion has been made that there might be some involvement by the contractors employees, but there is no evidence to support this possibility.

My insurance broker informs me that there is no coverage available for theft from a vacant property, only for the vandalism (broken windows, messed up carpets, etc).  Is this true?  Does anybody have any thoughts on how this risk might be mitigated?

Anyway, this event has completely wiped out my ROI for the entire year on this property and I would just like some feedback that will help me judge the risk going forward.

[Adam Sankowski]

@Douglas Brown are you a part of the Indy out of state group on FB?  This has been a major conversation over there.  I would join it asap.  One of the members even came up with a form for people to enter break in info into it so that the locations can be tracked and reported to the police and so that they can see if there are patterns to it all. I think David Blackman on there made the form. 

I know that some insurance companies have vacant property insurance I can't see how theft couldn't be a part of that.  Have you checked out National Real Estate Insurance Group? 

I would recommend getting (in the future, sorry) a Simpli Safe in there as soon as its vacant.  There does seem to be a huge increase in this all and Covid can't be helping things.  Personally I have one coming up and I'm going to pay my agent to drive by occasionally on top of putting a Simpli Safe in there. 

Also following this thread for other's ideas.  Def. get over there and look up that FB group, I think you just apply to join it and its pretty easy.