Does Tenant Insurance Cover Damage To Your Neighbours Units?

Let’s say you’re on vacation and a pipe bursts in your unit, flooding not only damaging your unit and belongings, but your downstairs neighbours as well. Are you responsible for the damage? Or does your tenant insurance have your back? Let’s find out. 

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Tenant Insurance and Liability Coverage

The good news is that personal liability coverage comes standard in APOLLO tenant insurance policies, which protects you if you’re found responsible for damage to someone else’s property—including your neighbour’s unit.

This coverage typically kicks in for situations like:

• Water damage: A leaky washing machine, burst pipe, or overflowing bathtub that damages your neighbour’s floors, walls, or belongings.

• Fire damage: Whether it’s from an unattended candle, faulty appliance, or kitchen mishap, fire and smoke can spread quickly beyond your own unit.

• Accidental damage: Maybe you’re moving furniture and accidentally knock a hole in a shared wall.

Your policy could cover repair costs, legal fees (if your neighbour sues), and even temporary accommodation for your neighbour if their place becomes unlivable.

What’s Not Covered?

While tenant insurance is a great safety net, it doesn’t cover everything. Some common exclusions include:

• Intentional damage: If you purposely break something in your neighbour’s unit, tenant insurance won’t cover the damages.

• Negligence over time: If you ignored a slow leak for months and it caused severe damage, your claim might be denied.

• Your neighbour’s own belongings: Unless you’re directly liable, your neighbour’s insurance is responsible for their own stuff.

What to Do If You Accidentally Damage a Neighbour’s Unit

Accidents happen, but taking the right steps can make a big difference:

• Mitigate the damage: If a pipe bursts, shut off the water supply. If a fire starts, call emergency services immediately.

• Notify your neighbour: Transparency can help smooth out potential conflicts.

• Document everything: Take photos, keep receipts for emergency repairs, and write down what happened.

• File an insurance claim: Contact your insurer to report the damage immediately. Here's a simple guide to filing a tenant insurance claim with APOLLO.

What is Subrogation?

If your contents are damaged due to an unintentional loss caused by your neighbour (e.g., they left a tap running), your insurance company may pursue subrogation—seeking reimbursement from your neighbour or their insurer. Likewise, if your policy covers damage to a neighbour’s unit, their insurer may do the same.

For example:

• If a pipe bursts and causes water damage, but the issue stemmed from poor building maintenance, your insurer might try to recover costs from the landlord or property management company.

• If an appliance malfunction (like a faulty dishwasher) causes a flood, your insurer may go after the manufacturer or installer for defective equipment.

• If a neighbour’s negligence contributed to the damage, such as improper disposal of items that clogged shared plumbing, the insurer may seek to recoup expenses from them.

Understanding subrogation is important because it allows your insurance provider to handle disputes and recover costs, which helps keep your insurance premiums from rising unnecessarily. It also means you won’t be personally responsible for tracking down who’s at fault—the insurer does it for you.

Do I Have Enough Coverage?

If you live in an apartment or condo with shared walls, ceilings, and floors, the potential for accidents affecting others is real. That’s why having adequate liability coverage in your tenant insurance policy is crucial. While APOLLO’s standard policies come with $1 million in liability coverage, policyholders can easily adjust their coverage limits on our Customer Portal.

The Importance of Tenant Insurance

Many renters assume their landlord’s insurance will cover everything, but that’s a big misconception. Your landlord’s policy typically covers the building itself—not your personal liability or damage to a neighbour’s property. That’s why tenant insurance is so important—it doesn’t just protect your belongings, but it can prevent you from facing expensive legal claims if an accident impacts those around you.

APOLLO is Canada’s leading provider of tenant insurance, tailored specifically for renters and customizable to fit your unique lifestyle. Get your free quote in less than a minute and we’ll send your policy documents right to your inbox.

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