Damage to another apartment - no insurance cover?

  • by Oy
  • Feb 19,2018
  • 15 answers

I caused some flood damage to the apartment below mine, I did not have my own renters insurance coverage. From what I’ve been told, the tenant renting the apartment below and the land lady who owns it, can claim on their own insurance to repair the damage I caused.
Though after paying out, I’ve also been told that their insurance companies will still hold the other party liable and they sue them to recover what they have paid out. With them being an insurance company, I’m told they will use lawyers who are experts in suing a responsible party (me) not only for the damage caused but also for full court costs and all other expenses which they will recover through a wages garnishment to ensure full payments and all expenses are paid.
To add to that, I was told that the girl renting the apartment and the land lady who owns it will both have deductibles which they will also sue me to recover that money, making all of this extremely expensive payments. Is this correct and they will all be suing me for this?


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Insurance Answers (15)

chatsplas 4 months ago

Renters insurance is reasonable
ALL renters should buy policy

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Casey Y 4 months ago

You are understanding this correctly. Its called subrogation, when an insurance company pays out to their policy holder, but then sues the responsible party...in this case...you.
Totally legit and very common. Think auto insurance; you hit someone and their insurance pays to fix their clients car. That company then sues you to recover what it paid out since you caused the damage. This is the same thing...

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lucy 4 months ago

In most cases renters insurance is dirt cheap, and now you realize the reason for (not) having it will cost you probably 10 times more than what a renters policy would have cost you.
Renters insurance is liability (fault) for any damages you caused and if any damages occurs to your (own) property, then it pays (minus) a deductible. The liability portion of the policy has (no) deductible and pays 100%.
Since you caused flood damages to the apartment below you, then guessing the ceiling will need to be fixed, or floors etc that was flooded, that will fall under the landlords insurance. Now the damages you caused to the renter, like furniture, clothing etc would be covered under the renters insurance.
Now (if) due to this flooding, you caused flood damage to (your) own apartment, like the floors as an example, then the landlords insurance can go after you for those damages also.
The (correct) name that poster (who) stated is incorrect. The correct name is called (subrogation or to subrogate), which means that the insurance has the right to collect from what insurance pays from the responsible party.
People all the time (assume) that you only owe someone’s deductible, but you always owe the (full) amount which (includes) the deductible, since insurance wants to be paid back what they paid, (plus) include the deductible of what the policyholder paid out. .So (if) both file on their own policies, then both insurance companies will go after (what) they paid, then they won’t need to sue you, since the insurance will go after you to collect their deductible (plus) what insurance pays.
Most likely (neither) insurance will sue you, but will send you a letter to you that we paid (X) amount which includes the policyholders deductible which will come from the insurance subrogation department. Then if you can’t pay in full, then (most) insurance will set you up on a payment plan to pay back from anywhere of 6 months to a year max, depending on the company.
Now (if) you don’t pay back, or miss payments, then at that time the insurance would go to court to possibly get a garnishment on your wages to collect, which at that time, they could also include the legal costs to your bill.

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StephenWeinstein 4 months ago

Basically, yes. Although you could just pay everyone now, so that they don't have to sue and you don't have to pay any court costs.
Also, only some states allow wage garnishments. The wage garnishment won't hapeen in a state that doesn't allow it.

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Flower 4 months ago

Probably sue you to get their deductibles, or take it out of your security deposit when you leave. Nobody can garnish your wages unless they win a judgment and you fail to pay.

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Judy 4 months ago

yes

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Beverly S 4 months ago

Yes this is all correct.

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A Hunch 4 months ago

Yes.
Except... the insurance companies are not going to need to sue you, right? You might have forgotten to purchase renters insurance but you are smart enough to not go to court for a case you can't win...
- create a payment plan with the companies
- hire your own attorney to work on an out of court settlement, if you need to,

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sunshine_mel 4 months ago

Yes.
(This is why you should have insurance)

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vivienne 4 months ago

Yes it is correct - their insurance will cover their expences and come after u. And paying the deductibles is the least of your problem right now. U will pay all the costs and going to court. I suggest u offer to fix everything otherwise u will be taken to cleaners. Believe me insurance company will take everything

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H. Marie 4 months ago

you caused it you pay, the other tenant may have renters insurance that will pay the damages but they will come to you to pay the bill

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Who 4 months ago

2 very important things to remember about ALL insurance
1) Just cos somebody IS insured against something happening dont mean they HAVE to make a claim on their policy. They ALWAYS have the right to sue the person who caused the problem
All the insurance does is make sure they are covered for any expense caused by the problem
2) Somewhere is all insurance policies there there will be a paragraph that says something like "when the insured person makes a claim and their insurance pay them - they abrogate their right to sue the person who caused them to claim in the 1st place"
the key word is "abrogate"
This means they give up their right to sue so the insurance company can
These 2 things mean - that IF somebody has a claim against YOU for damage YOU cause, but have insurance to cover that damage then they have 2 options
1) to sue you for the damage - problem for them is - this costs them time and money and if you aint got money to pay for the damage they will be wasting their money
2) to claim on their insurance
In THIS case- their insurance will pay for all the damage YOU caused
Problem for YOU is- their right to sue has now passed to their insurer so THEY can sue YOU
Whether they WILL sue is up to them and may depend on a lot of things
BUT their claimant can still sue YOU for any excess they have to pay
So YES you have been told correct - But It is not certain the insurance company will sue you - but even if it dont there is a VERY good chance both the girl and the landlord will
(I would - it costs the girl + landlord very little to take you to small claims - if they have a large excess this COULD lead to you becoming bankrupt and f//k you up for years to come
If they + insurance companies sue you are gonna be REALLY f//ked up)
ALWAYS TAKE OUT RENTERS INSURANCE
Not only would it have covered THEIR damage, it would also have covered damage to any of YOUR stuff

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Pascal the Gambler 4 months ago

They can sue you for the damage and any other costs they incur in having to get that money from you, yes.

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Doc 4 months ago

They probably will.

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Jackie m 4 months ago

I am in UK and if the flat/apartments is owned by the housing department and you have a burst pipe or similar it is them that are responsible but for example you let the bath overflow then it is your responsibility, if you are in a private rent then the owner of the apartment is responsible, Good Luck

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