Condo insurance and water leak into neighboring unit

[branimal]

Does homeowners insurance cover leaks from one apartment into another?

I live in a condo.

Water leaked from my toilet to the downstairs apartment. Not sure how much but there is at least some sheetrock damage. The neighbor was understandably upset so I'm going to wait for him to let me know the damage.

I was looking through my policy and I'm not sure which line item covers the water damage to my neighbors apartment.

Building property protection.
Personal property protection
Family liability protection


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[army judge]

Ask your insurer, call customer service, or your agent.

 

[adjusterjack]

I was looking through my policy and I'm not sure which line item covers the water damage to my neighbors apartment.

Building property protection.
Personal property protection
Family liability protection

The only way your policy will pay for the neighbor's damage is if your NEGLIGENCE caused the leak.

So that would be the family liability protection.

Report the incident to your insurance company right now. There should be a claims reporting phone number in your policy papers.

Do not discuss this with anybody but your insurance company rep. Don't agree to anything. Don't offer to pay anything. Report any accusations and/or correspondence directly to your insurance company.

 

[zddoodah]

Does homeowners insurance cover leaks from one apartment into another?

I live in a condo.

At the risk of being overly pedantic, neither homeowner's insurance nor condo owner's insurance will cover apartments.

I was looking through my policy and I'm not sure which line item covers the water damage to my neighbors apartment.

Building property protection.
Personal property protection
Family liability protection

There are no "line items" in your policy. I suspect you're looking at the declarations page, which is not where you should be looking.

In any event, your condo owner's policy is not going to cover damage to your neighbor's property unless the damage is something for which you are or could be held legally liable. That the damage resulted from your leaking toilet does not necessarily mean you are or could be held legally liable. Nonetheless, I suggest you put your insurance carrier on notice and keep your carrier updated if/when you receive a demand from your neighbor and refer your neighbor to your insurance carrier.

 

[adjusterjack]

At the risk of being overly pedantic, neither homeowner's insurance nor condo owner's insurance will cover apartments.

At the risk of being even more pedantic a renters policy is an HO-4 and a condo policy is an HO-6. The HO part stands for Homeowners.

So, pedantically speaking, homeowner's insurance does cover apartments.

 

[branimal]

There are no "line items" in your policy. I suspect you're looking at the declarations page, which is not where you should be looking.

Where should I look?



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[adjusterjack]

Where should I look?

Assuming you have a Condo Unitowners Policy (HO-6) or its equivalent you look in the policy booklet under Section II - Liability Coverage - Personal Liability.

Should look something like this:

SECTION II - LIABILITY COVERAGES
COVERAGE L - PERSONAL LIABILITY
If a claim is made or a suit is brought against an insured for damages because of bodily injury or property damage to which this coverage applies, caused by an occurrence, we will:
1. pay up to our limit of liability for the damages for which the insured is legally liable; and
2. provide a defense at our expense by counsel of our choice. We may make any investigation and settle any claim or suit that we decide is appropriate. Our obligation to defend any claim or suit ends when the amount we pay for damages, to effect settlement or satisfy a judgment resulting from the occurrence, equals our limit of liability.

"Legally liable" means the neighbor would have to prove that your negligence caused the leak.

Toilet leaks are generally unforeseen and unnoticed which means no negligence which, in turn, means that the neighbor should seek coverage from his or her own insurance.

 

[branimal]

My insurance company said the damages to my neighbor's unit will be covered under my insurance policy and there is no deductible to be paid by me.

All he needs to do is send in pictures and an estimate for repairs.

Since my insurance company is handling the claim, there is no need for an adjuster to come out. It's a 3rd party, so their policy is to not send out an adjuster. Strange.

I don't want to get into a combative situation with my neighbor. If someone above me leaked water onto my apartment, I'd want them to pay.


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[adjusterjack]

My insurance company said the damages to my neighbor's unit will be covered under my insurance policy and there is no deductible to be paid by me.

If you already knew that, then why all the questions?

If someone above me leaked water onto my apartment, I'd want them to pay.

And if they weren't negligent, they wouldn't pay and neither would their insurance.

I can't imagine why your insurance company has decided to pay if the leak wasn't caused by your negligence. Or was it?

 

[branimal]

If you already knew that, then why all the questions?

And if they weren't negligent, they wouldn't pay and neither would their insurance.

I can't imagine why your insurance company has decided to pay if the leak wasn't caused by your negligence. Or was it?

I did not know this until just now - the adjuster just called me back. I was quite nervous over the last few days thinking I could be out some cash.

It was caused by a bidet that was attached to the Toilet. It worked fine for 5 years and it just sprung a leak. I installed the bidet.

Good point about a neighbor refusing to pay for a leak. I wonder why my insurance is paying.


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[adjusterjack]

It was caused by a bidet that was attached to the Toilet. It worked fine for 5 years and it just sprung a leak. I installed the bidet.

That you installed it could imply a faulty installation but the fact that it worked for 5 years eliminates that possibility and it becomes more likely a wear and tear issue with a sudden and unforeseen leak which is definitely not negligence.

I wonder why my insurance is paying.

So do I.

You would be wise to discuss the issue with the adjuster because you don't want a liability claim on your insurance record if you aren't at fault. Could end up costing you more for insurance on renewal or if you wanted to change insurance companies. A paid claim would be reported to CLUE where other insurance companies would have access to it.

LexisNexis Personal Reports

 

[branimal]

So the story gets even stranger. I got a email from the guy I leaked onto's (who also happens to be the condo board president) lawyer demanding payment, and for me to show x amount of liability coverage. I've already agreed to pay for his damages 3x prior to the letter.

Today I get another email from the "leaked on" stating he will file through his own insurance and have me pay the deductible if his Insurance cannot collect the deductible from my insurance.

What I'm wondering is why wouldn't he use my insurance? Is he pulling some kind of scam?

I want to pay because I feel I am somewhat responsible. But now I'm somewhat cautious /
confused bc he lawyered up.

What's his angle?

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[branimal]

One possibility is he is claiming excessive damages and doesn't want me to see the claim amount.


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[mightymoose]

It's pretty amazing you offered to pay at all. Personally, I would be feeling extremely uncooperative at this point. I would just cease to exist in his world and let him figure things out without me.

 

[branimal]

It's pretty amazing you offered to pay at all. Personally, I would be feeling extremely uncooperative at this point. I would just cease to exist in his world and let him figure things out without me.

LMFAO. cease to exist....I'll have to write that one down.

I want to pay bc he could cause pain for me in the near future. When I want to rent my apartment out.


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[adjusterjack]

I want to pay bc he could cause pain for me in the near future.

Then there's nothing more to discuss.

If you want to pay when you aren't liable just because someone could pain you in the future, then you certainly don't need our advice.

Go ahead and pay him.

Just understand that anything you pay him could prejudice your insurance company's contractual rights to investigate and defend which could, in turn, result in you being non-renewed.

 

[branimal]

Just understand that anything you pay him could prejudice your insurance company's contractual rights to investigate and defend which could, in turn, result in you being non-renewed.

Would letting my insurance pick up his deductible ($1000)be less damaging to my ability to renew than having my insurance pay the claim outright?

The economics makes sense. Customer A has claimed 1k in 5 years vs 10k in 5 years.

I'll call my carrier and ask.

Email from Condo President:

"I just got off the phone with my insurance company. They will pay for the repair costs to my apartment less a $1,000 deductible. They also said that they will contact your insurance company to recoup the $1,000 in subrogation. No guarantee that they will succeed. Therefore, the $1,000 will be your responsibility."


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[mightymoose]

He is wrong. The $1000 is his own responsibility. You have no obligation to pay anything- and shouldn't. You certainly don't want to set a precedent for the next time it leaks.
This is entirely the responsibility of his own insurance and his own deductible.

As was initially stated- unless there is some indication of negligence on your part you don't have any liability here.

You decide what you want to do, but most people prefer to keep their money.

 

[adjusterjack]

Would letting my insurance pick up his deductible ($1000)be less damaging to my ability to renew than having my insurance pay the claim outright?

From dollar one a paid negligence claim goes against your insurance record.

the $1,000 will be your responsibility

The only way I can think of for that to happen is if your CC&Rs (condo docs) hold you responsible to any damage to others regardless of fault. Check your CC&Rs for that possibility.