About Mike Barrett Expertise I am qualified to consider questions relating to 1st party Property coverage interpretation in the field of Homeowners or Dwelling policies.
Experience 30 years experience adjusting and managing Property claims
Expert: Mike Barrett Date: 4/20/2003 Subject: Home Owners Insurance
Question Hello I live in New Jersey and I own a Co-Op. I had a neighbor who lives directly above me flood out his apartment. He allowed a washing machine to overflow and as a result there were water drippings coming through my apartment ceiling. I did not file a claim with an insurance company since I don't currently have home owners' insurance.
I need to know do I have to have home insurance in order to get a claim from his insurance company? Specifically, he filed a claim with his insurance company and they are now asking to see the claim I filed with my insurance company.
Should I go and hire an insurance company? If so, will they be able to represent me since the accident happened in March and not after I was represented by them?
Please help me ASAP I have to act on this right away.
Thanks
Answer Since we are dealing with the law of negligence in this matter, I am interested in the exact cause of this overflow. You say that your upstairs neighbor “allowed a washing machine to overflow . . . “ yet this is the most critical aspect of your claim. You see, before you can collect from the neighbor or their insurance company, you must be able to show the neighbor was at fault in some way that either caused or contributed to the actual overflow as mere ownership of this washer does not constitute negligence. In other words, what did the neighbor either do or fail to do that caused the washer to overflow? On the other hand, if the washer had a one time mechanical malfunction resulting in the overflow, it does not seem the neighbor is at fault for this and his insurance company would be reluctant to pay your damages. The burden of proof is on you to show the neighbor did something wrong that resulted in the overflow.
Let me explain this another way. Let's say you are driving you insured car toward a stop light but when you put your foot on the brake, nothing happens and you hit and damage a stopped vehicle. An investigation shows your brakes malfunctioned without warning. Now, what caused this accident and who is at fault and who pays for the damage to the other vehicle? The simple answers are:
· The accident was caused by the bad brakes, not anything you did or didn't do.
· Fault, or negligence, lies with the brake manufacturer or auto manufactures or both.
· The company that insures the other car will pay to repair it, not your company. This is because liability insurance (both auto and homeowners and that includes Co-Op) only reimburses the damaged party for accidents that are the fault of the person they insure.
You must be in a position to show what your neighbor did wrong before you can be assured of collecting from his insurance company.
Now, don't you give up on this matter because it appears this insurance company is willing to review your claim by asking for a copy of your claim with your insurance company. Even though you are uninsured, you have nothing to lose by submitting a claim. For all you know, they may believe their insured is at fault in some way so pursue this.
First, get written estimates of your damages and submit this to them explaining that you are a “self-insurer”. You could also invite their representative to your Co-Op and ask them to prepare an estimate of your loss.
Your final question deals with hiring an insurance company and I presume this means buying a policy now. Insurance of this nature only addresses an occurrence that falls within the policy period but it's too late for that because you cannot get a retroactive policy.
Finally, if your loss is fairly substantial, you may wish to speak with an attorney familiar with Co-Op losses in order to review the Co-Op bylaws as they may have some bearing on this matter.
