Insurer suing unit owner over burst pipe

[Nancy G]

A pipe burst in our condo and damaged the unit below ours.

Our neighbor's insurance company paid to fix the damage, but that insurer now is suing us.

What's the deal here?

[Olga]

If you cause damage to someone that forces that person's insurance to pay, the insurer can sue you to get the money back. This legal concept is called "subrogation." The lawsuit will be as if the injured person was suing you.

But just because a pipe burst in your apartment doesn't mean that you are responsible for the damage. For you to be liable, your neighbor would have to show that you were to blame. Sometimes nobody's at fault.

Even if you were, your own insurance might cover the damage. I hope you had hazard insurance in place and filed a claim when this happened. Also check to see whether your building has coverage for this sort of thing that is paid from your monthly dues.

In any case, don't just ignore the lawsuit. Discuss this with a lawyer, who should be able to find a valid defense or settle with the insurance company for a reduced amount.