Condominium Damage Financial Insurance Neighbor Issues

Condo Leak Leads to Mold for Downstairs Neighbor

G.H. from outside of Connecticut writes:

Dear Mister Condo,

My unit had a leak which was reported by downstairs neighbors who had a water bubble in the ceiling of the bathroom. Repairs were made in my unit but the leak continued. Long story short we went back and forth for a few weeks where we thought we resolved the leak but then a week or two later the unit below reported water. Part of the problem was the below unit is never home. So, they only report their floor being wet days after a possible leakage. During this time, the unit below had the ceiling opened up to allow it to dry before patching it. Finally, one night the unit below called that they see water dripping and we finally figured out it was my AC unit leaking water. My insurance came out and made repairs to my unit. My water damage was cleared within days. My insurance said the below unit should file a claim with their unit. 3 weeks later they are barely getting the insurance company to come see their damage. But now the unit below is saying they have mold growing and want my unit to pay for it. The owner also told me they have still been using their shower during these last few months. I feel responsible for water damage but not mold. The owner took no precautions to reduce damage, to dry the area, and steam from their showers was not helping the situation. Help, am I liable? Neither of our insurances will cover, and the HOA says it’s an issue between owners.

Mister Condo replies:

G.H., I am sorry that this unfortunate issue has escalated to this point. At the end of the day, it is likely to end up in court unless you and the unit owner below you can come to a practical solution. Homeowners insurance should have covered the initial damage for both of you. The HOA is not likely liable as this issue was not caused by a defect between the two units. Water from your air conditioner caused the damage to the unit below yours. Mold that results from water damage is typically covered by homeowner’s insurance but, in this case, your downstairs neighbor’s insurance carrier is not being responsive to the claim. The issue of your liability will only come into play if a lawsuit is filed. If that happens, you should hire an attorney to protect yourself. Do you have a price for the mold remediation? It is quite possible that your downstairs neighbor may have some out of pocket expense to remediate the mold (which they should do as mold can be toxic and even deadly). To be a good neighbor, you might offer to split the cost of the mold remediation but I do not believe you have a liability to do so. The real culprit here is the insurance company. Ideally, they would simply pay the claim and this matter would be resolved. However, many insurers would deny this claim based on the repeated nature of the damage and the lack of a timely repair after the initial claim which lead to the mold problem. I hope you and your neighbor work out a reasonable solution. All the best! 

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