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Home emergencies don’t send warning emails. One minute, things are fine — the next, your hot water system breaks, a storm damages the roof, or the washing machine floods the laundry!
That’s where a home emergency fund might help. Think of it as a savings buffer designed specifically for urgent and unexpected household costs — different from regular savings or everyday spending money.
In this guide, you’ll learn how to build a home emergency fund, what costs to plan for, how much to save, and which tools you can use to stay on track.
A home emergency fund could be a separate savings account reserved only for urgent, unexpected home-related costs. This could include anything from electrical repairs to storm damage or appliance failures.
Unlike a general savings account (which might cover travel, holidays or long-term goals), your home emergency fund is there to protect your day-to-day living conditions and keep your home safe and functional.
Here are the most frequent unexpected expenses homeowners and renters face — and what they might typically cost in Australia.
Can include things like: Burst pipes, blocked drains, leaking toilets
Typical cost: $150–$300 for minor issues, $1,000+ for replacements
Example: A blocked toilet typically costs between $100 and $200 to repair during standard hours, but emergency call-out fees can apply if work is needed after hours or on weekends!
Tip: Use platforms like ServiceSeeking or Airtasker to compare plumbers in your area.
Can include things like: Power outages, flickering lights, faulty switchboards
Typical cost: $90–$150 callout fee; $400–$1,200 for repairs or replacements
Example: Replacing a switchboard could cost anywhere between $300 and $2000.
Tip: Websites like Oneflare are a good way to get a quote for licensed electricians and check reviews to make sure you’re paying for an affordable, quality service.
Can include things like: Storm damage, broken windows, leaking roofs
Typical cost: Minor roof repairs can range from $200 to $600, while more extensive repairs may cost between $1,000 and $3,000. Meanwhile replacing a single window can cost between $150 and $1,200.
Example: A single-storey home that experiences roof leaks after a heavy storm requires emergency tarping and partial roof sheet replacement. The total repair cost can add up to $2,400, including materials, labour and after-hours callout.
Tip: To ensure you're adequately covered for such events, it can be a good idea to review your home insurance policy. Tools like Compare the Market can help you assess and compare different insurance options.
Can include things like: Essential whitegoods like fridges, washing machines, aircon units
Typical cost: Repairs from $150–$300; new appliances $500–$2,000+
Example: If your fridge breaks down in summer, you might be up for $1,200 to replace it — plus another $200 worth of groceries lost due to spoilage if it fails overnight.
Tip: In the event of an appliance breakdown, you might save without sacrificing quality by looking for a replacement in discount retailers like Home Clearance, Good Guys Clearance or Appliances Warehouse.
There’s no one-size-fits-all number, but you could start with something like this:
|
Household type |
Suggested fund size |
Weekly saving to reach it in 12 months |
|
Single (renter) |
$1,000 |
$20 |
|
Couple (homeowners) |
$2,000 |
$40 |
|
Family of 4+ |
$3,000–$5,000 |
$60–$100 |
It’s okay to start small — the key is being consistent and realistic with what you can set aside.
Some other ways you could build your emergency fund are:
You could also use the Moneysmart Savings Goals Calculator to work out a savings plan!
It can be helpful to keep your home emergency fund in a separate account. This might help you avoid accidental spending and ensure you always have extra funds available.
What works best will depend on your personal situation, but here are a few options people often consider:
Many people choose savings accounts that are easy to access while still earning some interest. Look out for promotions and bonus interest offers for an added boost!
Tip: Naming your account “Emergency Only” in your banking app might help you mentally protect those savings and stay focused.
If you have a mortgage, you might consider using an offset account. It doesn’t earn interest, but it could reduce the interest charged on your home loan while keeping the funds accessible.
Though less common these days, some people prefer to keep a small emergency stash in cash at home — for events like blackouts or tech outages. If you go this route, consider security and accessibility.
If you’re caught short just before payday, you could also consider cashing out with Beforepay Pay Advance for 24/7 emergency loans to help bridge the timing gap — just remember to use it for essentials and repay responsibly.
You can’t avoid every issue, but regular maintenance might reduce the chances of costly surprises.
Some things you could check for on a regular basis include:
Tip: Log your home’s appliances, receipts and warranties in a notebook or apps like Notes or GoogleKeep for easy reference!
Being prepared doesn’t mean having thousands sitting in a bank account overnight. But even saving a small amount regularly might protect you when life throws a curveball — and help you avoid debt, stress or disruption to your home.
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