Money Moral Dilemma: Should we pay for water damage caused by our machine?

cefurr

Having been in your neighbours shoes numerous times and my insurance company now threatening not to pay out if I get flooded again by my upstairs neighbour. Although you aren't liable I'm sure your neighbour would appreciate the gesture of you helping with the costs.

lfcmichael

As someone else said above (I am surprised more people haven't mentioned this), any block of flats will have a monthly service charge, a part of which is for building insurance taken out by the management company to cover the whole block. It should be building insurance paying for the main damage, with contents insurance picking up the tab only for specific possessions.

If your neighbour has had damage to possessions, that is unfortunately (for them) their issue. This is precisely why we take out insurance; it covers us against things which aren't our fault.

Torry_Quine

lfcmichael wrote: »

As someone else said above (I am surprised more people haven't mentioned this), any block of flats will have a monthly service charge, a part of which is for building insurance taken out by the management company to cover the whole block. It should be building insurance paying for the main damage, with contents insurance picking up the tab only for specific possessions.

If your neighbour has had damage to possessions, that is unfortunately (for them) their issue. This is precisely why we take out insurance; it covers us against things which aren't our fault.

Although I live in a flat I have my own buildings insurance (Scotland). In the above scenario as the downstairs flat I would be looking to my insurance to pay.

BorgusAurelius

The occupant of the flat below should claim for the damage using their own insurance. Their insurance company should then subrogate the claim back to your insurers.

Don't pay any damages directly yourself as this could be perceived as admitting liability opening you up to future costs if there are ongoing issues.

jaybizzl

Let the two insurance companies (yours and theirs) argue amongst themselves - it should not be your (or their) problem to determine which insurance pays but one of them should... that's what it is there for

Value4money

Surely events such as this should be covered by the insurance....although perhaps the damaged flat dweller might need their insurer to make the claim against the [insurer of the] flat above to get the claim under way. I don't see why the damaged flat dweller should be penalised by having their insurance pay out and then their premium probably rising due to the claim at renewal.
If your insurer really is insisting they aren't obliged to pay/get the damage to the flat below repaired, perhaps you should contact your insurer again and ask them which sections, paragraph etc.of your insurance policy show they are exempt from liability in this case.

meknowalot-51

Go through the insurance route and i'm sure they will sort it out.If for some reason they fail and neither of you are covered then you have to do the decent moral thing and pay up.Trying to get out of this could end up costing you a ton if your neighbour's are forced to take legal action.

Queen_victoria

Your insurance company have refused to pay since they are not insuring your neighbours property below only yours. If your neighbour ABOVE had the same ACCIDENT as yourselves, your insurance company would surely have to pay the damage to your property only. Therefore does it not make sense that the insurance company of your neighbour below would pay out for the damage to her property from an accident above. If she has not got insurance then that is NOT your responsibility. There's always the citizens advice bureau. I hope this helps.

Money_saving_maniac

MSE_Nick wrote: »

This week's MoneySaver who wants advice asks...

Our dishwasher malfunctioned and flooded the downstairs neighbour. Our insurance won't pay out as there was no negligence on our part. Should we pay out of our own pocket, pay her excess (even though this could affect her premiums), or leave it to her to sort out herself?

If you haven’t already, join the forum to reply!

[purplesignup][/purplesignup]

Of course, unless you want to be sued. And I don't believe your insurance will not pay out.

Kynthia

I think in flats you'd usually go through the buildings insurance for water damage caused by a different flat to the one damaged. That way the excess is covered by the service charge by everyone. However if personal items are damaged then they possibly have to go through contents insurance and I think a contribution shoukd be made.