The idea of dealing with water damage caused by storm water overflow, burst pipes or an overflowing bath may feel overwhelming if you’re renting. What does it mean for your rental bond, your living conditions and your insurance?
Knowing the right steps to take can help make the process go smoothly. Indeed, quick action is your best chance of preventing further damage or an even bigger problem, such as mould growth.
In this article, we’ll walk you through the steps you can take to help address water damage, from notifying your landlord to understanding what your renter’s insurance might cover.
Common causes of water damage in rental properties
Damage from water can occur for various reasons. These might include:
- Serious roof leaks1
- A burst water pipe1
- Blocked or broken toilets1
- Leaking appliances, such as air conditioners or washing machines
- Flooding in a neighbouring property.
Some causes will be obvious, while others, such as leaking appliances, could go unnoticed for a time, potentially resulting in water-damaged carpets, ceilings or floors.
Are tenants legally responsible for water damage?
According to Sydney-based property lawyer and podcaster Amanda Farmer, tenants have a legal obligation to report any damage, including water damage, to the landlord as soon as possible.
“The best thing a tenant can do is take a photo or video recording of the damage and send it to their landlord or property manager immediately, noting the location, when it was noticed, and if possible, the cause,” says Farmer.
“Keep everything in writing, either via email or SMS, so there is a record of the report,” she adds, “and continue to follow up if you don’t get a response.”
Farmer says tenants should try to minimise damage where possible, for example, by mopping up water or placing containers under leaks.
Is it safe to stay in a home with water damage?
Water leaks can make a property unsafe, depending on the severity of the issue. For example, standing water can cause structural damage or lead to mould growth, which can pose a significant health risk.2
“Mould is common after leaks, especially if the leak has been around for a while and areas of the property remain damp,” Farmer explains.
“Any mould from a water leak should be reported to the landlord or property manager as soon as possible, as mould can be hazardous to health and needs to be dealt with promptly.”
If the water damage is severe or poses a health risk, water damage restoration may be required before the property is safe to live in again. In some states and territories, tenants may be able to request emergency repairs, and landlords are obliged to attend to them within a reasonable time.
A spokesperson from Queensland’s Residential Tenancies Authority (RTA) says if the property manager, owner or a nominated repairer cannot be contacted about an emergency repair – or they have been contacted and the repairs are not made in a reasonable time – the tenant can arrange for a qualified person to carry out the emergency repairs.3
It’s worth noting that each state and territory has different regulations around emergency repairs such as water damage. You can check the relevant rules in your area using the useful links below:
- Australian Capital Territory: Justice and Community Safety Directorate
- New South Wales: NSW Government and Tenants’ Union of NSW
- Northern Territory: Northern Territory Consumer Affairs
- Queensland: Tenants Queensland and Residential Tenancies Authority
- South Australia: Consumer and Business Services and RentRight SA
- Tasmania: Consumer, Building and Occupational Services and Tenants’ Union of Tasmania
- Victoria: Tenants Victoria and Consumer Affairs Victoria
- Western Australia: WA Department of Energy, Mines, Industry Regulation and Safety
Who pays for water damage – landlords or tenants?
Across Australia, responsibility for repairing damage from water typically falls on the landlord, provided the tenant is not at fault.4 But, for example, if a tenant accidentally lets their bath overflow, causing water damage, then they may be responsible for the repair costs.
“If the damage is through no fault of the tenant, the landlord is typically responsible for these costs,” says Farmer.
In strata properties, responsibility for water damage in shared areas – such as external walls, ceilings or the roof – may fall on the body corporate.5 Tenants may want to check their lease agreement to understand who is responsible for different types of damage.
“(In Queensland) landlords are obligated to maintain the property in a good state of repair and ensure it complies with health and safety standards,” says the RTA spokesperson.
“If there is water damage due to a structural issue, like a leaking roof or burst pipe, the landlord must cover the cost of repairs.”
Similarly, in Victoria, every room in a rental property must be free from damp and mould caused by, or related to, the building structure before it is offered for rent.6
Comparable rules apply across Australia, but as noted above, it’s always worth checking with the tenants’ rights organisation in your state or territory.
Does insurance cover water damage?
Contents insurance for renters typically covers damage to personal belongings caused by events such as water leaks or flooding, although your exact coverage will depend on your specific policy.
“With a Youi Contents policy, you have cover for damage to your belongings caused by insured events, including storm and flood, as well as escaping water, which could be, for example, if your kitchen plumbing bursts,” explains Mervyn Hartley, Youi’s Head of Product for Home Insurance.7
While contents insurance can help cover the cost of replacing damaged items such as furniture or electronics, remember that the responsibility for water damage restoration will typically fall on the landlord or property owner, provided the tenant is not at fault.
If you’re renting and responsible for fitted carpets, fixtures and fittings, Youi’s tenant’s liability extra cover, available with a Youi Contents policy, will cover these if they’re damaged due to an insured event.
What should you do when water damage occurs?
There are a few steps that Farmer suggests tenants would be wise to take in the event of water damage:
- Document the damage – take photos or videos of the affected areas as soon as possible.
- Contact your landlord or property manager – notify them immediately and keep all communication in writing.
- Minimise further damage – mop up water, use buckets to catch drips and prevent further damage where possible.
- Check your contents insurance policy – review your coverage to see if your personal belongings are protected.
“If a repair is urgent and the landlord or property manager is not responding to the tenant’s reasonable requests, the tenant can generally arrange emergency work through qualified trades when the cost of the work is up to $1,000,” says Farmer.
“For non-urgent work, if the landlord isn’t responding to requests, a tenant can apply to the tribunal in their state, seeking orders that the landlord get the work done or compensate the tenant for losses they’ve suffered, which could include a rent reduction.”
If you spend money on emergency repairs or replacing damaged items, Farmer suggests keeping invoices and receipts and always being ready to explain how these costs were reasonable and necessary.
Protecting your belongings with contents insurance
Dealing with water damage in a rental property can be stressful, but understanding your legal responsibilities and having the right insurance can ease the burden.
You can find more information on how contents insurance can cover you in the event of water damage on our renter’s insurance page. Or, to find out if our insurance is right for you, start a quote with Youi today.
Information provided in this article is a guide and should not be used as a substitute for professional legal advice.
1 Source: Consumer Affairs Victoria – Repairs in rental properties, February 2023
2 Source: NSW Health – Mould, December 2022
3 Source: Residential Tenancies Authority – Emergency repairs
4 Source: NSW Government – Making changes and repairs
5 Source: NSW Government – Strata repairs and maintenance, December 2023
6 Source: Tenants Victoria – Minimum standards, December 2023
7 Exclusions and limits may apply. See our Home insurance PDS for full details.
