What happens if my upstairs neighbor's pipe bursts?

Coverage depends on the source and circumstances. Your policy might cover your unit's damage, or the neighbor's policy might be responsible.

When a pipe bursts in an upstairs neighbor's unit and causes damage to your condo or townhome, the question of who is responsible often hinges on several factors including the source of the water issue, your particular insurance coverage, and the policies held by your neighbor and the condo association. Typically, if the burst pipe is part of the common infrastructure (for example, the plumbing that belongs to the entire building), the condo association's insurance might step in. However, if the burst pipe is within the upstairs neighbor's unit and resulted from negligence or lack of maintenance, their insurance may be responsible for covering repairs to both their unit and yours. Meanwhile, your own condo insurance policy might cover damage to personal property and possibly some structural repairs, depending on your coverage details.

Imagine you live in a beautiful condo and one day you come home to find water leaking from your ceiling. After some investigation, you find out that the pipe in the neighbor's bathroom upstairs burst due to aging infrastructure. The water has affected your ceiling and some of your furniture. You immediately contact your insurance company who assesses whether your policy covers internal damage, while your neighbor contacts their insurance to see if they're liable for damages related to personal property or structural repair. In this case, since the pipe is part of the building's original plumbing, the condo association's insurance may cover the structural damage to your walls and ceiling. However, for personal items like your furniture, your own condo insurance might handle it.

To prepare for situations like a burst pipe in an adjacent or nearby unit, review your current condo insurance policy to understand what types of water damage are covered. Consider enhancing your coverage if necessary, especially focusing on water damage and personal property protection. It's also a good idea to maintain a friendly relationship with neighbors and stay informed about any maintenance issues that could affect your unit. Additionally, attending condo association meetings where maintenance and infrastructure concerns are discussed can give you insight into potential upcoming problems.