Water Damage from Broken Water Heater

Started by RowlandC • 7 replies • 2126 views

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RowlandC (California)
Posts: 3

Posted:

A 2nd floor condo owner's water heater broke and it flooded the condo unit beneath his unit. The replacment cost for new carpet and new padding, and new vinyl flooring was estimated at $4300. The carpet was at least 10 years old and the vinyl over 20 years old. Neither owner had insurance. What percentage of the replacement cost should be paid by the upstairs owner? Should the life expectancy of the carpet and vinyl flooring be taken into account to determine the amount to be paid by the 2nd floor owner?

TimB4 (Tennessee)
Posts: 21,059

Posted:

I would suspect that if neither owner had insurance that if the two owners can not reach an agreement on who should pay and the amount to be paid, then the issue should be taken to civil court and the Association should stay out of the dispute between the neighbors.

I would also recommend that the Association turn the issue of repairing/paying for the items they are responsible for to the Associations insurance and let the Insurance company deal with any other individuals to recover what they might be owed.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

I agree with Tim.

I'm sure the owners will end up in court, they always do.

That said...... get insurance.

RowlandC (California)
Posts: 3

Posted:

From RowlandC

Thanks for your replies.

What is typically the end result when the homeowners go to court? Is the age of the damaged carpet typically taken into account in the final judgement or does the damaged homeowner typically receive full compensation to replace the entire damaged carpet?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Rowland,

It will depend on the Judge. I would suspect one homeowner to say the carpet was x years old and needed replaced anyway. I would suspect that the other homeowner to say the carpet still had x years of good use. The judge will listen to both sides, look at repair estimates and make a decision that probably both sides won't fully agree with.

I know of a homeowner who had a leaky dishwasher that damaged the basement. Since the damaged paneling couldn't be matched to the existing undamaged paneling, the insurance company removed all the paneling and paid to have it dry walled.

The bottom line is that both homeowners chose to take a chance and not carry homeowners/condo insurance. If they can't work out a settlement, then both sides will take their chances when they go to court.

Tim

TimB4 (Tennessee)
Posts: 21,059

Posted:

Rowland,

If you don't mind sharing, are you:

a) A member of the Board of Directors
b) The owner of the upstairs unit
c) The owner of the downstairs unit
d) A curious neighbor

Tim

RowlandC (California)
Posts: 3

Posted:

Hi Tim:

I am the former HOA President..and most recently past treasurer...Since the HOA board was advised by our legal counsel not to get involved...that this problem was between the two owners...I volunteered to serve as an "impartial mediator". The upstairs owner wants to prorate the life of the carpet...and the owner downsairs with the damaged carpet wants the full dollar value of a new replacement carpet. I am trying to get the two parties to agree to agree on a number...but a key question is the method of determining what the basis should be to arrive at the dollar amount which should be paid. If they cannot agree on a number, the downsairs owner is saying she will "go to court".

I appreciate your input.

Rowland

TimB4 (Tennessee)
Posts: 21,059

Posted:

Rowland,

Good for you for trying to be a good neighbor. Why not explain the situation to your own insurance agent and ask them how it would work. They would know any applicable insurance laws associated with your State.

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