Fluid models that approximate kinetic effects have received attention recently in the modelling of large scale plasmas such as planetary magnetospheres. In three-dimensional reconnection, both reconnection itself and current sheet instabilities need to be represented appropriately. We show that a heat flux closure based on pressure gradients enables a ten moment fluid model to capture key properties of the lower-hybrid drift instability (LHDI) within a reconnection simulation. Characteristics of the instability are examined with kinetic and fluid continuum models, and its role in the three-dimensional reconnection simulation is analysed. The saturation level of the electromagnetic LHDI is higher than expected which leads to strong kinking of the current sheet. Therefore, the magnitude of the initial perturbation has significant impact on the resulting turbulence.