Advice Needed – Water Damage in My Apartment

[Jeff Si]

Hi everyone,

I own an apartment unit in San Francisco, which is currently rented out.

During an inspection last September, the building management identified damage in the unit, which they believe resulted from a water leak in my neighbor’s unit some time ago. The estimated repair cost is a few thousand dollars.

Over the past few months, I’ve been in discussions with my neighbor, trying to have their insurance cover the repairs. However, just yesterday, their insurance company rejected the claim.

This is my first time dealing with a situation like this, and from my perspective, I have a few options:

1. Cover the repairs myself—either through my own insurance or out of pocket.

2. Negotiate with my neighbor to contribute partially or fully to the repair costs. My neighbor seems reasonable, but since I no longer live in California, managing communication remotely is challenging.

3. Pursue legal action by filing a lawsuit against my neighbor.

Since I’m navigating this for the first time, I’d really appreciate any advice or insights you might have. Thanks in advance for your help!

[Joel Bongco]

Aloha @Jeff Si -  I've been in a similar situation(s).   

Here are a few questions:

1. Was the water leak from the supply or sewer line?

2. Where was the break?  Broken Valve, P-Trap, Building Lateral?  Copper, CPVC, PEX?

3. Did your neighbor get a report from the plumber?  Was it the building plumber or a 3rd party Plumber?

4. What was the reason given for the insurance denial?  Can you get a copy of the denial letter?

5. What is the scope/cost of your repairs? Drywall?  Flooring? Paint? Mold Remediation?

Please let me know and I can provide you with some options. 

Mahalo!

Joel