Townhome water damage from neighbors

[Josh Engelhart]

Looking for some advice on an unfortunate situation. I own a fee simple townhouse (No Homeowners Association). We came back over the weekend to find out our neighbors pipe burst on the 2nd floor of our shared wall. It leaked from the second floor down to the basement, wrecking the basement and causing minor damage on the way down.

Our insurance has a clause that specifically protects them from having to cover claims originating from damage caused by issues on the other side of the shared wall and told us to contact the owners. The owners told us to deal with it.

Any advice would be appreciated.