I have a rental property (townhouse) that recently had some water damage. The faucet to the tub on the second floor broke when the tenant tried to shut off the water. It took her awhile to figure out where the main shut off was, but by that time the tub overflowed. The flooring/1st floor ceiling beneath it was damaged. Anyways, my insurance company is giving me a hard time saying 1) "there appears to be no cause of loss...believed to be normal wear and tear" and 2) that the HOA's insurance company should be the primary insurance filing the claim and they should be the second.

First of all, even if it's caused by normal wear and tear, there's still loss so shouldn't it be covered? And secondly, my understanding is that the HOA insurance company would only cover the exterior and my insurance would cover the interior, which my HOA company confirmed as well. But my insurance company is giving me a hard time on that as well and wants the HOA to file a claim.

Is this typical coverage you all have for your rental properties? I'm at a loss of what to do next. Do I need to upgrade my policy to a typical homeowners policy instead of a rental property policy?