WaterOut › Insurance claims › Upstairs neighbor
Upstairs neighbor · Condo · InsuranceWater Came From the Unit Above: Whose Insurance Pays?
Three policies can touch a unit-to-unit leak: your own policy, the unit above's policy, and the condo association's master policy. Which one responds, and for which part of the loss, depends on your condo bylaws and all three policies. Read your bylaws before you assume who pays.
Why one leak can touch three policies
A condo or apartment leak from the unit above usually starts as a plumbing failure inside that unit: a supply line, a toilet, a washing machine hose. The water then crosses a floor and ceiling that two different owners, or an owner and the association, each have some responsibility for.
Condo bylaws commonly draw the line between what the association's master policy covers (often the building structure and common elements) and what each owner's own policy covers (often the unit's interior finishes and contents). That line is set in your bylaws, not by either insurer alone.
Your own policy may have a loss-assessment provision that pays if the association charges you a share of a master-policy deductible or an uninsured loss. That is a separate question from whether the upstairs owner's policy owes you directly for their unit's failure.
What to Document for This Claim
Three different insurers may ask for three different pieces of this file, so gather all of it up front.
| Evidence | Why the adjuster asks for it |
|---|---|
| Photos of the ceiling, walls, and floor in your unit, and, if you can get access, the source in the unit above | Shows the extent of damage in your unit and points to the cause above you |
| A copy of your condo association's governing documents, specifically the insurance and maintenance sections | Tells you and the adjuster where the association's responsibility ends and the owners' begins |
| The name and insurer of the unit above, if you can get it from the owner or the association | Lets your insurer pursue that owner's insurer directly if their unit caused the loss |
| A copy of any letter from the association about a master-policy deductible charge-back | Supports a loss-assessment claim on your own policy if one applies |
What the association, the unit above, and you each tend to own
This is a general pattern, not a rule for every building. Your bylaws set the actual lines.
| Who usually owns it | Who usually pays |
|---|---|
| Building structure, common pipes, common roof | Usually the association's master policy |
| Interior finishes and contents inside your unit | Usually your own homeowners or condo-unit policy |
| A deductible or uninsured amount the association bills back to owners | Often your policy's loss-assessment coverage, if you have it |
| Negligence by the owner above, such as an ignored running toilet | Can be a direct claim against that owner's liability coverage |
What the Clock Looks Like on This Claim
Whoever's policy ends up paying, the usual Michigan notice and documentation steps still apply to your own claim.
- Notify your own insurer about the damage as soon as you know about it, even before fault is sorted out.
- Protect your unit's interior from further damage while the source upstairs gets fixed.
- Dry your ceiling, walls, and floor within 24 to 48 hours wherever it is safe to start.
- Your insurer owes you its written proof-of-loss request within 30 days of your claim, regardless of who caused the leak.
Sources: DIFS Consumer Counselor FIS-PUB 0216 · DIFS Consumer Counselor FIS-PUB 0216 · EPA, A Brief Guide to Mold, Moisture and Your Home · MCL 500.2006(3), Michigan Legislature
The full Michigan claim deadline guide covers appraisal, payment interest, and depreciation for the claim your own insurer handles on your unit.
Upstairs neighbor Insurance Questions
My ceiling is damaged from the unit above. Do I file with my insurer or theirs?
Start with your own insurer. Your policy may cover the damage to your unit directly, and your insurer can pursue the owner above or the association afterward if their coverage or their negligence applies. Filing with your own insurer first usually gets the repair moving faster.
What is loss assessment coverage?
A provision on some condo-unit and homeowners policies that pays your share if the condo association bills owners for a deductible or an uninsured loss on the master policy. Check your own policy's declarations page for this coverage and its limit.
Does the condo association have to tell me what its master policy covers?
Michigan condo associations are generally required to carry master insurance and to make their governing documents available to owners. Read the insurance section of your bylaws, or ask the association's property manager for a copy.
The upstairs owner says it's not their fault. Does that matter?
It can. A sudden pipe failure the owner above could not have known about is treated differently than a running toilet or a known leak they ignored. Document what you know about the cause and let the insurers sort out fault between themselves.
What if I'm a renter, not an owner?
A renter's policy, if you have one, usually covers your own contents and additional living expenses. Damage to the unit itself is the landlord's and the building's insurance question, not yours to file.
How long do I have to notify my insurer?
Notify your insurer as soon as possible once you know about the damage. DIFS Consumer Counselor FIS-PUB 0216 Waiting can weaken a claim even when the cause is clear.
Water Damage From This Cause Right Now?
Getting into the unit above to see the source matters for the claim as much as it does for stopping the leak.