Water damage to someone else's condo

[Jeff Morrison]

Hi BP!!  I received a text this morning that my tenant had left the water running in the kitchen sink, and it overflowed to the condo below.  I spoke with the owner of the other condo and she sent pics, the water is on the ceiling, wall and floor (new floors and paint before current tenant moved in).  Also the tenants tv quit working (according to my tenant today that he said the other tenant said his tv is now working).  I contacted my insurance company and they said I am not covered for other units in the building.  I will definitely be billing my tenant for any damages, but he has been late on his rent for 3 out of the last 4 months, and he told me last week that he would have to break his lease over a year early, so I don't think he could pay for the damages if they are extensive.  When I told him he would be responsible for a fee to break his lease plus forfeit his security deposit, he is reconsidering, still haven't heard a definite answer.  This is my first rental and I am just starting on my first flip, so funds are pretty tight right now.  Any suggestions would be greatly appreciated.

[Tom Keith]

Jeff Morrison Jeff, first of all, do Not accept liability for ANYTHING. That means do not go look at downstairs unit. Next, go to your Insurance policy or agency and get clear understanding what you purchased and what you should have. Every state has its own coverage but most are close. What your tenant did is called "Negligence" otherwise known as stupidity. That is what liability pays for on insurance policies. There is usually coverage under property damage liability to cover other persons property. Also a condo policy has broader form coverage to purchase since you have the structure owned by condo association not you or owner below you. And finally, with all the above, Require any tenant to have renter insurance with liability coverage and show you as "additional insured" on policy. You will be protected from stupidity and if they cancel, you know and they break lease. If they can't afford coverage, you don't need them as tenants.