My new  tenants upstairs apparently brought in a "portable washer" which has leaked into the downstairs unit - destroying the tenant's bed and TBD on the rest of the damage. (Yay for Saturday afternoon emergency calls!)

Thankfully,  we require our tenants to have renter's insurance and show us proof/sign an addendum with their lease. Once I figure out the extent of the damages what is my next step? Pay for it and bill back the tenant/their insurance or have their insurance come out, look and pay to get it all fixed? What about the bed?

Thanks for any insight or advice you may have.

Inform your tenant that they will be responsible for all repair costs and advise them to contact their insurance agent immediately. You contact your insurance agent. That begins the process and you then do as your agent instructs.

Originally posted by @Christen G. :

My new  tenants upstairs apparently brought in a "portable washer" which has leaked into the downstairs unit - destroying the tenant's bed and TBD on the rest of the damage. (Yay for Saturday afternoon emergency calls!)

Thankfully,  we require our tenants to have renter's insurance and show us proof/sign an addendum with their lease. Once I figure out the extent of the damages what is my next step? Pay for it and bill back the tenant/their insurance or have their insurance come out, look and pay to get it all fixed? What about the bed?

Thanks for any insight or advice you may have.

 I would call the upstairs tenant's renters insurance policy and make a property damage claim with them and request an adjustor to come document the damages to your property. They brought an unauthorized appliance into your house which then leaked into the downstairs unit. They will write up an estimate for repairs and what they would pay for your damages. At the same time, get estimates from contractors of your choosing to perform the repairs and make sure your estimate matches that which insurance wants to reimburse you for. If not, you need to advocate for having them increase their reimbursement before you sign any releases related to the claim or accept any payment. They should also reimburse you for any emergency water damage repairs like carpet drying from the likes of servpro or local water clean up professionals. You don't have to wait for approval for emergency cleanup costs since those could result in mold if you dont act quickly. They'll make you whole down the line when you share receipt. Then have the tenant submit their own claims for personal property damage  with their own policies and deal with replacements on their own. Don't get involved with their personal property issues and let them know the same. Execute repairs quickly to your property, wrap up the claim to get money from their insurnce and move on. Make sure they dont attempt to connect another unauthorized appliance. If it works out and you get made whole from their renters policy, you should not have a loss history against your homeowners/landlord policy. good luck!

Also and damage costs not covered by their insurance company the tenant will be personally responsible for. You may have to take them to small claims court if they refuse.