A trailer theft victim has won a payout after the dispute authority found he took reasonable steps to protect his property.

The man’s claim was denied by RACQ Insurance, which said the trailer had been left unsecured on the street outside his home, meaning he failed to take “reasonable precautions”.  

He should have been aware of the theft potential, given people were seen loitering outside his home in the weeks before the crime in June last year, the insurer said.  

The man told the insurer police been called about the loiterers and he thought they had detained someone.

He said his precautionary measures included installing a “poly block hitch” – a tow coupling that he thought was not commonly used, meaning it was less likely to be taken.

He also placed a tarp over the trailer to conceal it.

In a dispute ruling, the Australian Financial Complaints Authority says the man’s home was not in a high-crime area and there were no prior theft attempts, and “these factors do not suggest the complainant had any particular reason to suspect a theft may occur”.

Even if the man acknowledged the risk of theft, the case would not have met the requirements of the insurer’s exclusion.  

RACQ Insurance would have to show the claimant understood the risk but failed to take steps to avoid it, or that he was “was recklessly indifferent to the risk”, AFCA says.  

“The submissions do not establish the complainant actively considered the likelihood of a theft,” an authority ombudsman said.

“To the extent he thought of it at all, his approach was not reckless or indifferent to the risk. If he was not aware or did not think there was a risk, I am not satisfied he failed to take reasonable precautions.”  

The decision requires RACQ Insurance to accept the claim.  

See the ruling here.