Apartment water leak

Our Experts Answer:

In an apartment complex, the walls and ceilings between floors are generally classed as “shared property”, and therefore there would be a joint responsibility between neighbours for any issues in this area. However in this particular instance the damage appears to have been caused by a lack of workmanship on the part of the builder and therefore any liability should rest with him. Due to the builder’s financial situation it seems there is little or no recourse available to you in approaching him to cover the cost of the pipe and ceiling repairs. As the damage was not caused by any negligence on your part, technically there is no reason for you to pay for the plumbing (block/cap the pipe) and ceiling repair, although this will also depend on what arrangement you and your neighbour agreed to before to the work was carried out. Another option may be to approach the body corporate or seek legal advice on the best course of action to proceed from here. Unfortunately this is not really an insurance issue as it would be classed as an error in workmanship and design which is an exclusion under most  (if not all) property insurance policies.