Don’t DIY – why handymen can void landlord insurance

There is a good reason why DIY at a rental property is not the best idea. In fact, it is a rather bad idea. And that is because there are implications for landlord insurance – damage caused by tenants and even owners doing DIY repairs or renovations is unlikely to be covered by the landlord’s insurance. In fact, such repairs or renovations could actually void the landlord’s cover. We explain…

According to a 2024 survey by online tradie marketplace hipages, nearly 4.2 million Australian households experienced a DIY disaster in the past 12 months.

For many, the motivation was clear… 69% said they decided to have a go to save on tradie costs and speed up the home improvement process. While most stuck to simpler tasks like painting, cabinetry, and gardening, others ventured into more specialised territory, taking on plumbing, kitchen installations, and even bathroom renovations.

Unfortunately, when things go wrong, it is unlikely landlord insurance will cover damage caused by DIY efforts, especially when the work should have been carried out by a licensed professional.

Act to prevent further loss

When it comes to repair works by unskilled and unqualified tool-wielders, there is a chance that they could cause additional damage or make existing damage worse. This is the complete opposite to the landlord insurance policyholder’s contractual obligation in their policy to ‘act to prevent further loss’.

Policies also exclude damage or loss caused by faulty workmanship or caused by the policyholder, their family members or any person acting with their consent (like a tenant).

Compliance issues

Aside from making matters worse, the DIYer’s repair or renovation works may result in safety or compliance issues. This is especially true when it comes to specialised tasks like plumbing, electrical and structural works, or activities such as removing asbestos. Some works are required to be carried out by licensed professionals, and if they are not, then the works are ‘illegal’. Insurance companies will not recognise work done by an unlicensed tradie and any work they do could void the property owner’s insurance policy.

Maintenance

There is also a condition in insurance policies that requires the premises to be adequately maintained. Illegal, non-compliant or poor-quality works could be considered a breach of this obligation. If the policyholder suffers a loss that is the result of such works, it is unlikely that their claim would be paid (say, for example, the property was re-wired by someone who was not a qualified and licensed electrician, and this resulted in an electrical fire that impacted the property).

A false economy

Cutting corners to save costs, whether by taking on repairs personally or hiring an unqualified but inexpensive contractor, can quickly become a false economy. If something goes wrong and the work is not up to standard, landlords risk facing significant losses that may not be covered by insurance.

Professionals get it wrong too

Any works at the premises, regardless of who is doing them, could result in damage. But, the difference is, any damage caused by a professional tradesperson should be fixed by them as part of their contract to perform work to a certain standard. And, of course, the tradie should be insured themselves. Most trades are required to hold public liability, and sometimes professional indemnity, insurance to carry out paid work. Because they are insured, any damage they cause should be covered, limiting the risk to the property owner – and their insurer.

Avoiding the risk of injury

Every weekend, emergency departments across the country see DIY-related injuries. Think ladder falls, nail gun mishaps, and accidents involving power tools and lawn mowers. While it is generally safe to change a lightbulb, touch up paint on a doorframe, plunge a blocked sink, or tighten a cupboard handle, more complex tasks like rewiring lights, repainting a home’s exterior, fixing pipework, or installing a kitchen or bathroom should be left to qualified professionals. Importantly, landlords should never ask tenants to carry out repairs. If a tenant is allowed to perform work at the rental property and suffers injury or loss as a result, the landlord could be held legally liable. In such cases, insurers may decline the claim, especially if the landlord knowingly put the tenant at risk. When it comes to repairs and renovations, anything beyond the most basic tasks is best handled by licensed tradespeople. It protects the property, the people involved, and the landlord’s liability.

To sum it up

Saving money by opting to DIY might seem like a good idea, but if things go wrong it could end up costing much more than a tradie’s call-out fee. No matter how ‘handy’ they think they are, owners and tenants need to ‘step away from the power tools’. To safeguard insurance cover, landlords and property managers should engage appropriately skilled and insured trades professionals to undertake repairs and renovations at the investment property.

If you have questions about cover for repairs in EBM RentCover landlord policies, reach out to a member of our Expert Care team – 1800 661 662.