What’s considered an emergency repair?

When a rental suffers damage, some repairs are emergencies and they require urgent fixing. Read on to find out what constitutes an emergency repair and why you need to act quickly to safeguard your insurance... 

The truth is that people have different ideas about what is an emergency and what isn’t. One person might consider something aesthetic to be an emergency and may request it to be fixed immediately. Other times, the issue is in fact an emergency – like a burst water pipe – and requires immediate attention.

The good news is that tenancy legislation across the country defines what constitutes an emergency which ultimately requires urgent repair. The laws also set out strict timeframes for such repairs to be made.

What is an emergency?

While there is some variation between jurisdictions, as a rule, emergency repairs at a rental property are those that need immediate attention because they make the property unsafe or uninhabitable.

Emergencies may include: 

• Burst water service or serious water leak. 

• Blocked or broken toilet (especially if there is only one at the property). 

• Blocked or broken plumbing system including sewerage leaks. 

• Serious roof leak. 

• Gas leak. 

• Dangerous electrical faults. 

• Flooding or serious flood damage. 

• Serious storm damage. 

• Fire damage. 

• Serious impact damage (for example, from a falling tree or vehicle collision). 

• Breakdown of gas, electricity or water supply to the premises. 

• Failure or breakdown of essential services like hot water, cooking, laundry, heating, or electricity. This can include appliances like stoves, fridges, heaters, washing machines, hot water systems or air-conditioners breaking down, if these are provided at the rental. 

• Faults or damage that make the property unsafe or insecure, such as a broken smoke alarm or pool fence, or broken/damaged locks on external doors and windows. 

• Damage that can cause health issues such as pests, mould or damp caused by or related to the building structure.  

• Faults or damage that could likely injure a person, damage property, or cause major inconvenience to the tenant or inhibit their gaining access to or using the premises.  

These emergencies need to be attended to immediately. If the landlord or property manager fails to do so, they are not only likely to be in breach of the tenancy agreement but also the applicable tenancy and housing laws. This could see them go before a tribunal or court, and face fines and compensation payments. 

Emergency repairs and insurance 

Failing to take care of emergency repairs can also impact insurance.  

Cover under an insurance policy is contingent on the policyholder (and their representatives) acting lawfully. If the landlord fails to uphold their duty of care, for example by not attending to emergency repairs as legislated, then any claim they make for damage and loss could be jeopardised.  

This even extends to liability claims (and PI claims if you are an agent). If you don’t respond to emergencies correctly and timely, and someone hurts themselves as a result, an insurer may have the right to deny or limit a liability claim – and these can stretch into the millions of dollars.  

In addition, as emergency repairs generally relate to safety and the home being habitable, not addressing these also means the premises is unlikely to fulfil the insurance obligation of being adequately maintained. Once again, this could cast a shadow over any claim.     

What do insurers consider to be emergency repairs? 

Just like the laws, insurers typically consider emergency repairs to be those that need immediate attention to ensure the property is safe and habitable. But, crucially, they also consider emergency repairs to be those needed to prevent further loss. 

If an emergency is not remedied, there is a risk that even more damage will occur or more losses will be sustained. So, the policyholder needs to make a reasonable effort to stop more damage or loss happening. For example, boarding up a broken window or putting a tarp on a leaking roof (if safe to do so). If additional or subsequent damage happens because of the policyholder failing to act to prevent such an occurrence, then their insurance claim can be impacted.  

Do emergency repairs require approval from the insurer?  

In some cases, the emergency repairs will need to be carried out by licensed professionals such as plumbers or electricians, or specialists like arborists or asbestos removalists. Anyone carrying out emergency repairs should be experienced, licensed (where applicable) and insured.   

It is important to know that EBM RentCover policyholders do not need to get our prior permission to arrange for emergency repairs. In this respect, emergency repairs are those necessary to prevent further loss. You need to document the damage and keep the tax invoices to submit with your claim. But it is also important to know that you should not arrange any non-emergency repairs (including those which are not specifically being done to prevent further loss) without getting in touch with us first and getting the go-ahead. 

Are emergency repairs covered by landlord insurance? 

While you do not need to get approval to have emergency repairs carried out, this does not mean that all emergencies will be covered by landlord insurance.  

Whether the damage is covered depends on the policy you have and whether the damage is the result of an insured event covered under that policy.  

For example, things like a water heater breaking down may be considered an emergency under the relevant tenancy laws in your state or territory and must be repaired within the legislated timeframe, but it is unlikely that this will be covered by insurance unless the reason the appliance stopped working was due to an insured event such as motor fusion (if there is cover for this). If the appliance simply broke down or stopped working due to age or lack of maintenance, then this is not an insured event, and its repair or replacement will not be covered.   

Other emergencies that aren’t likely to be covered by insurance may include things like clogged toilets as this is not an insured event, or damage to structures such as pool fences that are not the result of an insured event but due to lack of maintenance or similar. Always check the product disclosure statement (PDS) for details on general exclusions too, such as damage caused by pests, mould, or general wear and tear. 

The takeaway 

Emergency repairs are serious business. Failing to take care of an emergency repair within the legislated timeframe can not only see the landlord and their property manager in trouble with the courts but also put the landlord’s insurance at risk. 

If a rental has suffered damage and it needs to be repaired as a matter of urgency, then be sure to follow the legislated requirements and your obligations under your insurance policy. 

If you have questions about emergency repairs under any EBM RentCover landlord insurance policy, reach out to a member of our Expert Care team for guidance – 1800 661 662.