r/Insurance • u/info_swap • Apr 20 '26
Home Insurance I received a subrogation demand from my neighbor's insurance
Hi Colleagues,
I bought a condo in July of 2025. Two days after signing, my contractor found a water leak which damaged my neighbor's apartment. Old post: https://www.reddit.com/r/Insurance/comments/1mccink/neighbor_is_claiming_water_damage_from_leak_on/
I did not live at that apartment at the time. I also don't consider that I was negligent, because we stopped the leak immediately and notified the building manager. And most likely, this leak had been running before while the other owner lived here. Since the damage is too big to have happened after I signed.
Also, I have home owner's insurance. I am covered for liabilities up to USD 300,000.
Last week, I received a subrogation demand for $36,000! This came from the neighbor's insurance company.
What do you recommend?
- Send the claim immediately to my insurance company?
- Hire a lawyer?
- ???
And if I contact my insurance, should I file a claim? Should I explain what I shared above? (I was not negligent and most likely the leak started with the previous owner.)
Please, save my assets! I cannot afford $36,000!
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u/FaultRealistic9344 Apr 21 '26
Let your insurance handle it. If they deny the claim and you are sued, they will provide you with an attorney who will either settle the claim or represent you in court. And id you lose in court, they will lay the damages up to your policy limit. They will also know whether or not to bring the previous home owner and their insurance company into it.
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u/info_swap Apr 21 '26
My insurance is asking me if I admit liability. I am saying no. Should I deny liability?
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u/ProInsureAcademy Apr 21 '26
I would tell them: “I am denying liability. At the time the water leak was discovered I was only the owner for two days and had not resided at the property. The leak appeared to have been pre-existing and it seems that it started while prior owner First Last name owned the property.”
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u/boo_sommelier Apr 21 '26
The subrogation department is probably too lazy to find the prior owner. Maybe you can provide them that information and documentation, they may give you a break. Otherwise, you'll have to involve your insurance.
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u/Altruistic_camel-toe Apr 22 '26
NO NOPE, once you buy the property, you inherit all the problems that comes along with it unless otherwise specified in the contract. Most contracts call for “as is where it is” to say that there is no implied warranty. Period.
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u/boo_sommelier Apr 23 '26
Not really. HO policies cover Loss Dates and unknown can't normally be transferred by a contract. It appears this situation existed for some time as was the damage caused. There should be more than one carrier looking at this for both coverage and liability.
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u/FrostingSuper9941 Apr 21 '26
How would they go after the previous owner when the damage happened when Op was the owner.
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u/homeboycartel2 Apr 21 '26
Depends on the origin of the leak and who owned then. If op paid for it, cross complaining against prior owner seems dubious.
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u/info_swap Apr 21 '26
Can I insist that it was the previous owner?
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u/Rail1971 Apr 21 '26 edited Apr 21 '26
Your insurance company has a duty to defend you on liability claims, also they will not want to pay for something that occurred before you moved in and their coverage began and for which you are not liable. They have the expertise, let them do their job defending you.
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u/info_swap Apr 21 '26
Is this as simple as giving my insurance company the document from the suboragation demand?
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u/Rail1971 Apr 21 '26
Pretty much, as a start. They'll probably ultimately want photos of the leak area before the fix if you have them, and after the fix (now). Also, if you had it fixed professionally, a copy of the invoice from the professional that fixed it. You are helping them providing evidence they can use to build a legal case to prove (1) the damage was pre-existing to your occupancy and (2) you acted in a timely manner to fix it once you had notice of the condition.
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u/info_swap Apr 21 '26
My insurance is asking me if I admit liability. I am saying no. Should I deny liability?
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u/boo_sommelier Apr 23 '26
This sounds crazy. If your company wants to pay the claim, they don't need your permission. For you to owe the claim, it must be shown or proven that you are negligent. The first question is "what did you do wrong?"
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u/info_swap Apr 23 '26
When I filed the claim, my insurance asked me "do you admit liability?"
I said no. I was not negligent.
Thanks!
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u/Rail1971 Apr 21 '26
First, who at the insurance company is asking? Your agent or the adjuster? If it is the agent, just tell them you'll be dealing with the claims department in the matter from here on out. If it is the adjuster, don't give them a flat yes or no answer. Discuss the total circumstances with the adjuster and tell them you don't think you are liable because the condition was there before you took possession, but are not sure. Determining liability in the end is a legal evaluation and they are the experts in tort law, not you.
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u/skyharborbj Apr 21 '26
Yes. They will probably want a recorded statement and possibly pictures. Cooperate fully with them, they're essentially your lawyer.
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u/info_swap Apr 21 '26
My insurance is asking me if I admit liability. I am saying no. Should I deny liability?
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u/skyharborbj Apr 22 '26
Yes, you should deny liability. This is simply telling them that it wasn't your fault.
If you knew that it was leaking and ignored it, then you would admit liability.
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u/info_swap Apr 22 '26
Thanks. I am denying liability.
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u/skyharborbj Apr 22 '26
This is what you should do. Your insurance company will reply to the subrogation demand and tell them they won't pay because you're not liable.
Your neighbor's insurance will either dig deeper and subrogate against the previous owner or contest the denial. If they go against the previous owner, you're done. If they contest the denial, your insurance company will fight it for you, either in arbitration or by defending you if you're sued.
In either case you won't be out-of-pocket.
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u/insuranceguynyc Apr 21 '26
Send everything to your homeowners insurance company and let them handle it. Trust me, it ain't their first rodeo.
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u/SeekingARespite Apr 24 '26
First off, read your condo association bylaws. It's not uncommon for that to dictate what can or cannot be subrogated. Start there every time.
Then once you know whether and how your condo association bylaws effect the neighbors legal rights against you, then you can make a better informed decision. It's not uncommon to have non subrogation provisions if the neighbor had insurance. But no one including your own insurance can defend you on that if they don't know the provisions, and many carriers are too lazy to even ask for this info.
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u/Rustyinsac Apr 21 '26
When you bought the codo had it had an inspection, and were there any real estate disclosures?
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u/1AlertAsparagus Apr 21 '26
They are probably hitting the former owner too. They will try everybody, see what sticks.
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u/JTUSAJT Apr 21 '26
Did you have a home inspection before buying? If so, your insurance may go after them. Let your insurance handle this.
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u/GuvnaBruce HO/Auto Liability 14 years Apr 21 '26
1 - yes
2 - probably not necessary
3 - let the insurance handle it