Insurance company suing my tenants!?

[Chris Masons]

So an interesting is happening in my little Real Estate world currently.... couple months ago I had tenants moving out who apparently didn't shut off waterline to fridge before moving it and as a result had a flood in basement... I ended up keeping security deposit and filing a claim for damage ~ 11k damage IE. carpets, molding, ceiling - primarily in finished basement....

Fast forward to yesterday I get an e-mail from my former tenant stating that my insurance company wrote him a letter and says he owes them 11k for causing a flood in my house! He wants me to tell insurance company the matter has been settled by me keeping his security deposit.

He  (my former tenant) is saying that since we both agreed I would keep his security deposit he considers the matter settled... But I guess not so fast as the insurance company wants him to pay back their loss they covered for me?

Is this a common practice for insurance companies to do? Has anyone had this happen or have any experience? If this goes to court I assume I will be called as a witness for the insurance company? Also I am really wondering how hard and litigious  the insurance company will pursue my tenants for? Seems they will have a tough time proving this? I wonder if they are just sending the letter as half hearted effort to see if they can collect, OR  will they pursue this aggressively?  Doesn't ,matter one way or other to me as I have been made whole by them already I am just curious to this whole process as I have never seen this happen before. I also will say this is the first claim I have ever had to file with my insurance company...

Would love to hear others thoughts and experiences with this?

thx,

Chris