My hot waterheater burst & water caused damage to the condo below. Should my liability insurance cover it?

Question

I have additional insurance beyond what the condo association covers. I have liability insurance and have filed a claim but they are saying it will most likely be denied because I was not negligent becuase as far as I knew the water heater was in good shape. My insurance company says that the owner below me needs to file their own claim with their insurance but she is refusing to do so saying that the damage was not caused by her. Is this how it is supposed to work?

Answer 1

Yes.  She can sue you, and say you caused the problem deliberately.   If she does, then your policy will defend you in court.  Most likely, you aren't liable for it, and a judge will say so.  Then she can file the coverage under her policy, or pay it out of pocket.

Most likely, she doesn't have a policy, which is why she isn't filing.  Which means, she's out of pocket for the repairs, herself.

Just like, if the guy above YOU has a hot water tank that bursts, YOU have to file under YOUR policy.  

She can't file on YOUR insurance.   You really AREN'T liable for this, unless you were whacking the hot water heater with a baseball bat until it broke.

Answer 2

Bottom line if you are found liable your liability coverage would come into play. So what if you didn't know your water heater was going to burst, if you did I am sure you would have replaced it. The same if you have a car accident, if you are liable for the damages your insurance pays. END OF STORY! I think that you need to speak with someone else in the claims department at your insurance office.

Answer 3

Your starta should be able to cover this.  But then I live in Canada.  I lived in a condo where this happened and the starta's insurance that we paid into covered it, since it was noones fault.  You never know, look into it.

Answer 4

Odds are that the actual liable party here is going to be either the manufacturer of the water heater (depending on how old it is) or the condo association who may be responsible for maintaining it.

The lady below needs to report this to her insurance because I doubt any other party is going to step up and offer to pay without a long investigation. While she waits the water damage is only going to get worse.

Her company has a contract (policy) with her and under the terms of that contract they will pay her regardless of who caused the damage. Then her company will go after who ever they think is liable to seek reimbursement for the money paid and her deductible.

You are not liable just because the water heater was in your condo.