Q. A week ago, I was informed by the Estate Agents that are managing my flat that water was leaking from my flat into the occupiers below. The leak has caused damage to the ceiling, walls and carpets in the flat below us and the occupiers are demanding that we pay for the damage to their flat. Would I be liable for the damage to their flat? I am assuming that any structural damage would be covered by the buildings insurance? Surely, damage to the ceiling would fall under structural repairs and would have to be claimed by the flat below under the buildings insurance policy? If they were insured would their insurance company chase for damages from us.
A. As you rightly thought the owner of the flat below should claim off of the buildings policy via the Managing Agents for the flat .The buildings insurer could then (if they seem fit) pursue a claim against you. Although in the circumstances you describe, the chances are that they won’t or cant. It’s worth speaking to your managing agents to discuss the terms of the policy as they do vary but on the whole you should find that the Block Insurance should cover the damage to the walls and ceilings of the occupier below but they will have to make a claim on their own contents insurance to cover the cost of the damage to the carpets and any other items of furniture, or miscellaneous items that were damaged in the leak. Due to excessive amounts of water damage on some large leasehold developments most Managing Agents now insist owners make regular checks on things like grouting and mastic in bathrooms and kitchens and also that the boiler and water tanks are serviced on a regular basis too. Excessive amounts of water damage claims can result in higher buildings insurance premiums as well as higher excess’s on the policy which will be passed on to the Leaseholders via their service charges so its definitely in the best interests of all Leaseholders to make sure the necessary checks are carried out and maintained to prevent further unnecessary expense.