Responsibility for Water Heater Damage Between Condos

Condominium ownership is a unique type of home ownership. Owning a condo is considered the ownership of real property, like a house, rather than of “shares” like a cooperative apartment. It does carry with it, however, some of the same characteristics of cooperative apartment ownership, such as common areas and maintenance fees, that are the responsibility of an “association.” The general rule in a condo is that you own and are responsible for anything “inside your four walls” and are liable for anything caused by your negligence (such as leaving your water running and causing a flood). There should be something in writing that tells you the specifics as to what is considered to be common areas, and covered by the condo association , and what is considered the responsibility of the homeowner. The condo association would take care of anything that relates to the building itself, like the roof, common walkways, etc., and they should have insurance to cover those areas.

Condo units generally have separate water heaters for each unit housed within the unit. If the heater has a defect that causes flooding and damage to the neighboring unit, you may be responsible. Investigation needs to be done as to what exactly caused the flooding. If the flooding was due to a pipe bursting insidethe wall, then the damage may have not been caused by any negligence on the owner’s part and is not the owner’s responsibility.

The neighboring unit that had damage will most likely have insurance of their own covering the damage. What may happen is that they will make a claim under their own policy, and then their insurance company will “subrogate” the claim on their behalf. This means that they will be able to step into the shoes of the homeowner and sue the party that is liable for the damage. The homeowners may also have a deductible that they will be responsible for and then bring a small claims suit against the liable party to recoup that money.

You need to pull out your paperwork that you received when you purchased the condo and read the part that applies to this situation. If you are unsure or it is unclear then you should seek help from an attorney in the field familiar with these types of situations.

Examining Responsibility for Water Heater Damage Between Condos: Case Studies

Case Study 1: Burst Pipe and Negligence

In this case study, a water heater in one condo unit malfunctions, causing a pipe to burst and flood the neighboring unit. The owner of the unit with the malfunctioning water heater may be held responsible for the damage caused due to their negligence.

The condo association’s insurance may cover the common areas, but the affected unit owner will likely make a claim under their own insurance and may seek reimbursement from the responsible party. This case highlights the importance of determining the cause of the damage and understanding the responsibilities outlined in the condo association’s governing documents.

Case Study 2: Defective Water Heater and Liability

In this case study, a water heater in a condo unit has a manufacturing defect, leading to a flood and damage in the neighboring unit. The owner of the unit with the defective water heater may not be held responsible for the damage if it can be proven that the flooding was caused by the manufacturing defect and not due to negligence on the owner’s part.

The affected unit owner may still file a claim with their insurance company, which can subrogate the claim against the manufacturer or supplier of the defective water heater. This case underscores the need to investigate the cause of the damage and determine liability based on the circumstances.

Case Study 3: Clear Negligence and Insurance Claims

In this case study, a condo unit owner leaves their water running and causes a flood that damages the neighboring unit. The owner’s negligence in leaving the water running makes them responsible for the resulting damage. The affected unit owner will likely file a claim with their insurance company, which can then subrogate the claim against the negligent party.

The negligent party may also face legal action or a small claims suit to recoup the insurance deductible. This case emphasizes the importance of personal responsibility and the potential consequences of negligence in a condominium setting.