Need Advice: Water Leak From Upstairs Unit — Their Insurance Denied Responsibility

Rod HanksBusiness Member

Insurance Agent · Dallas, TX · Member since 2013 · 743 posts · 462 votes

Tough situation but your only recourse is to file on your own insurance and let the insurance companies duke it out or get an attorney and file against the upstairs owner. The fastest way to get your property fixed is to let your insurance company handle it. The longer you wait the more damage from mold mildew etc you will get which won't be good.

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David Spurlock

OH · Member since 2022 · 75 posts · 23 votes

10mo

Am I missing something, or why haven't you reached out to your insurance agent? Do you have insurance on your condo?

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Andrew Bish

Insurance Agent · Chicago · Member since 2025 · 46 posts · 38 votes

10mo

You could have an attorney review the waiver if you'd like. However, it sounds like that part of the HOA governing agreement says that each unit owner is responsible for the damage in their unit, regardless of who or what caused it. I don't think you could sue for damages due to that pre-existing waiver, however, I am certainly not an attorney. This is a fairly common practice among condo associations here, but I'm not sure how standardized the language is or if there would be an angle there.

What's left is filling through your insurance or fixing out of pocket. If you do file a claim, sooner is better than later. If you wait too long, you may breach your duty of prompt notice of a claim which could lead to a denial. Yes, the situation is a rough one, especially since the insurance market does not treat non-weather water claims kindly (especially in our area). If you are able to fix out of pocket, you would likely save yourself the headache and money of potential insurance surcharges over the next 3-5 years.

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John Clark

Member since 2018 · 1k+ posts · 1k+ votes

10mo

Quote from @Mateusz Motyka:

Hi everyone,

Looking for some guidance on a condo water-damage situation.

I’m in Illinois. The unit above me had a plumbing leak, and the water came down into my ceiling. I’ve got drywall damage and may need more of the ceiling opened for the plumber to finish repairs.

I submitted all the documents their insurance (State Farm) requested — photos, estimates, and the full HOA governing documents. After reviewing everything, they said they're not responsible because of a waiver section in the HOA docs that shifts owner-to-owner damage to each owner's own insurance.

The upstairs owner isn’t helping at all and keeps telling me, “Ask insurance,” and won’t talk about restoring my ceiling.

My concerns now:

If plumbers open more of my ceiling, I don’t want to be stuck paying for the repair.
My own insurance will likely cover it, but I don’t want the claim on my record if it can be avoided.
Since their insurance already denied it, I’m not sure what the next best step is.
I don’t know at what point I should involve an attorney.

What would you do in this situation?

Is it worth pushing back on the denial, letting my own insurance handle it, or talking to an attorney before anything else happens?

Thanks for any advice.

Contact your insurer, let it guide you and instruct you as to what you need to do in your scenarios. Tell it you want recovery for aggravation and your loss of use and deductibles as well. Once insurers settle, see what’s left.

also talk to your lawyer about suing so you don’t blow any deadlines for suing.

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George SkidisPro Member

Rental Property Investor · Belleville, IL · Member since 2017 · 875 posts · 529 votes

10mo

I worked as a claims adjuster for 30 years. This is how I remember it. Condos and their regulations suck.

The reason for my opinion is that the HOA documents govern EVERYTHING! Unless the upstairs neighbor was negligent in some way you may be on your own.

The next question concerns the HOA requirements for insurance. Do you have studs in or surface covering insurance coverage.

Your condo policy should be written to MESH with the HOA policy. Did they require you to purchase Studs in coverage? This means you are responsible for the drywall and everything else in your unit.

If you were asked to purchase surface coverage in you are responsible for the paint, cabinets and all furnishings attached to the dwelling but not the drywall. This means the HOA is responsible to repair the drywall but not the paint or any other damages.

Now you need to determine if the claim is actually worth submitting. First look up your policy deductible. Are the repairs more or less than the deductible. So is it worth involving your insurance carrier to get a check for $37.75 after the deductible. Insurance claims frequently cost more than private pay.

A good handyman can replace the entire bathroom ceiling for under $400.00 They probably have a minimum drywall charge of $250 or so. If the damage is in another area the cost would go up.

If you turn this into your insurance company, they will also review the HOA regulations. They will cover your damages that exceed your deductible. If they think they can recover from the neighbor or their insurance company, they will pursue the right of "Subrogation". This means the insurance company stands in your place, hires the attorney and goes after collecting their money and your deductible. They may know a loophole around the waiver, They may not. Don't get your hopes up on this.

Highly probably you will be "Out of Pocket" on this.

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Need Advice: Water Leak From Upstairs Unit — Their Insurance Denied Responsibility

Need Advice: Water Leak From Upstairs Unit — Their Insurance Denied Responsibility

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