Two very different stakeholders under one roof
Residential and commercial occupants experience the same leak in opposite ways.
Residential unit above
- Often owned by an individual condo owner or rented by a tenant who may not be home.
- Covered by a homeowner, condo unit-owner or renter policy, if any.
- Bound by the condominium declaration or lease for access and repairs.
- Damage may be modest at the source even when the floor below is soaked.
Retail or office space below
- Leased by a business that may lose sales every hour it stays closed.
- Covered by a commercial tenant policy that may include business income coverage.
- Holds inventory, fixtures and equipment that the tenant owns.
- Often gets the most visible damage because water collects at ceiling level.
Why these losses get complicated
In many downtown mixed-use buildings the residential floors are a condominium or apartment component and the commercial podium is a separate unit or owner. Each component may have its own association, master policy and management. The building engineer who answers the first call may not have keys to the unit that is leaking.
That makes access the first real problem. Read the declaration or the management agreement before a loss so you know who can enter a residential unit in an emergency, what notice is required, and who keeps the master keys. When a resident is away, shutting the unit's water at a floor or riser valve may be the only option, which can affect neighbors.
The second problem is responsibility. The cause and location of the failure, the governing documents and each policy's terms all play a part. Nobody at the scene should promise who will pay. Document the facts, notify every carrier that may be involved and let the adjusters sort coverage.
Deciding the first move
- IfThe resident is home and the source is obvious, such as a washer hoseThenHave them shut the appliance valve or unit valve, photograph the source, and get their insurer's name and contact.
- IfThe unit is empty and water is still fallingThenFollow the documented emergency entry procedure with a witness, or close the nearest valve that isolates the unit, and record the time and who did it.
- IfWater is reaching light fixtures, panels or signage belowThenShut power to the affected circuits if it is safe to do so, keep people clear, and bring in an electrician.
- IfThe retail tenant has perishable or high-value stockThenHelp them move it out of the drip zone first and photograph it before and after so their claim reflects what was saved and what was lost.
Records to collect from both sides
- Unit number above and the name of the owner or resident.
- Insurer names for the unit owner, the association and the retail tenant, if known.
- Photos of the failed component at the source.
- Photos of the ceiling, walls, fixtures and stock in the space below.
- Times the leak was reported, stopped, and when extraction began.
- Any statements the resident gave about when they last used the appliance.
General information for Downtown Denver, not a quote or professional advice. In an emergency, call 911.