Condo Leak

[damiaal]

What is the name of your state? AL

I got a call that my neighbor complained a leak from my condo was damaging her ceiling. After having a plumber come and inspect the situation he said that a spigot in my guest bathroom had been installed improperly. This allowed a seal that was not watertight to allowed water to re-enter the wall and run down to my neighbor's ceiling.

I had the plumber repair the problem immediately and am awaiting a call from the adjustor. When I originally called my insurance co. I was told my homeowner's wouldn't cover it unless I had done something negligent.

I didn't install the spigot and I can't really be sure which previous owner did. But I can't imagine that it is not my responsibility to repair my neighbor's ceiling and that homeowner's should cover. Any thoughts??

 

[Jennalp85]

Hello,

The first step that you need to take is to review your policy. It may feel like this leak is something that your insurer ought to cover but whether or not this is true is defined by the actual policy. You may not have a policy that indemnifies you for repairs made by the previous owner. If it turns out that your company does not cover this leak or repairs to your neighbor's condo here is a synopsis of what could happen.

Let's say that you are A and your neighbor is B.

First, B will contact his insurer and file a claim for the damage caused to his ceiling.

Second, B's insurer will expect B to pay his own deductible.

Next, B may choose to sue A for the cost of his deductible.

A's insurer may or may not cover legal costs, but will probably have to pay the deductible amount back to B's insurer.

Additionally what could happen in this situation, is that your neighbor's insurer may choose to sue your insurer for the full cost of damages. Add in these legal expenses, and this leak repair will end up costing way more than its worth. That said, you may want to consider trying to resolve this with your neighbor yourself because it will probably cost you less money. Before your neighbor files a claim with his insurer and pays that deductible, you may want to consider paying for the repairs yourself.

I hope this information helps. Feel free to visit The Service Exchange forums if you have any more questions about this or any other insurance topic and I can address your answers directly through forums or by e-mail.

Good Luck!
Jenna