Rental Property Investor · Plano, TX · Member since 2017 · 47 posts · 6 votes
Hi all. I have a rental property in the sate of Kentucky. The tenants in my condo (upper unit) left the water running while filling a bathtub, resulting in water leaking into the downstairs condo.
My tenant has $300K liability insurance, but apparently it doesn’t include any negligence water damage. The lower unit owner has contacted her insurance company as well as Serv Pro to assess the damage.
I called my insurance company and they said that my insurance would cover my unit, while the lower unit owner’s insurance would cover her damage.
With the above in mind, I’d imagine her insurance company would look for someone to collect the money from. Would they come after me (the owner of upper unit) or the tenants who caused the damage?
Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
8y
Totally shooting from the hip here, but I don't think they can come after you unless there was some way you were negligent in causing the damage (e.g. you personally installed a tub without connecting any of the drain pipes, so the water from the bathtub flooded the unit downstairs).
In this case, I believe your tenants were negligent and therefore should be held liable.
Now, I guess that does not preclude them from trying to collect from you, because you can sue anybody for anything in our great country, but I would not think they would have a case.
I'm sure someone else with more direct experience with insurance claims will weigh in, but that's my take.
Rental Property Investor · Member since 2018 · 40 posts · 46 votes
8y
I am also shooting from the other hip. @Wesley W. is right about it not being your fault. Just like if their belongings were lost in a fire it would not be your fault. But you can expect their insurance company to come after you for their money. Plus the downstairs will want their deductible from someone. If your tenant pays the insurance company or the other owner then no worries.
Personally I would keep pushing back asking, how is it your fault - you were not there. Even if they threaten a lawsuit, I don't think they have grounds.
You might want to check the Master insurance policy of the Condominium and see what it covers.
Investor · Bayside, NY · Member since 2017 · 1k+ posts · 1k+ votes
8y
I own multi families and had similar problems. But there is a overflow drain built into most tubs and if working properly should prevent overflows. If it overflows, the overflow drain is most likely inoperative, probably clogged. If so, the damages is caused by plumbing issues that might not be covered under your tenants renter's insurance even if he has it. I owned condos once and the CC&R's says the HOA is responsible if it's caused by plumbing inside the walls, but overflow drains is part of the tub and might not be considered inside the wall. I had water coming from units above in my multi families and plumbers who came usually checked to see if the overflow drain is working. If not, then you're responsible since tubs should not overflow even if the tenant runs the water to fill the tub, walks away, and forgot about it.