My condo unit was recently flooded by my neighbor’s broken washing machine. My insurer says I have to ante up the $250 deductible. Why? It’s not my fault. The neighbors should pay.

If you file a claim with your insurance company it should pay you the benefits it promised — damages less the deductible.

The person causing the damage would be liable for the entire damages, but of course if the neighbor or his insurance company is unwilling to pay is unwilling to pay, you’d have to sue to collect. That’s why many people go to their own homeowner’s company and eat the deductible.

Ask the neighbor to pay the deductible. But if he or his company does not, you’d have a bit of a problem. When your insurer pays your claim, it is “subrogated” to your rights to go after the neighbor. If your insurance company bothers to collect from the neighbor or his insurance company, it should pay your deductible back. The kicker is that very often your company does not bother collecting because it can cost more to try than it is likely to collect, especially if the neighbor has no homeowners insurance. In that case you could ask your insurance company for permission for you to sue to recover the deductible and any other damage. The company may let you with an understanding that if you sue you ask for the entire damage and pay them anything over the deductible.

Case Studies: Insurance Dilemmas and Resolutions

Case Study 1: Neighbor’s Broken Washing Machine 

John, a condo owner, faces a flooding incident caused by his neighbor Sarah’s malfunctioning washing machine. Despite the neighbor’s fault, John’s insurer insists he pay a $250 deductible. This case study explores potential solutions and the responsibility of the neighbor in covering the deductible.

Case Study 2: Subrogation and Recovering Deductibles

Mark’s insurance company pays his claim for damages caused by his neighbor’s negligence. However, the company chooses not to pursue reimbursement of Mark’s deductible. This case study delves into the concept of subrogation and examines Mark’s options for recovering the deductible through legal action.

Case Study 3: Denied Claim for Stolen Property

Sarah files a claim with her insurance company for stolen property. However, her claim gets denied due to insufficient evidence. This case study explores the challenges faced by Sarah and the potential avenues she can pursue to contest the denial and receive the coverage she deserves.