Water heater leakage damaged next door property.

[Jun Hyuk Baek]

Hello,

A water heater leakage went unnoticed for a few days and caused partial flooding in my rental unit and the neighbor's unit. Based on the neighbor, he had to pry up his carpet and had damage to the underlayer and his carpet. He has been putting towels to soak up water and tells me the carpet may have to be replaced. Based on what my plumbing contractor saw while replacing the water heater, he could see evidence of water leakage from our unit to the neighboring unit. Does landlord insurance policy typically cover damage to neighboring units? I am hearing that I am not liable for the damages to the neighbor's unit since it was not an act of negligence (I fixed it as soon as I could after hearing about the issue). The neighbor would have to submit a claim to their insurance company, and I would mine. 

Does anybody have experience with this kind of situation?

I appreciate your time and response!

Thank you

Jun