What the Neighbor at Fault Must Pay For

If a neighbor is legally responsible for water damage you suffer, you may be entitled to any or all of the following:

• compensation for cost of repairs and replacements
• compensation for expenses such as having to stay at a motel
• reimbursement for medical expenses
• compensation for mental distress, if you have suffered an underlying physical injury
• punitive damages, if a neighbor acted maliciously.

Judges also frequently order problems to be fixed if fixing them would be easy and inexpensive. Replacing a downspout, clearing away debris, or cleaning out a drain creates very little burden on a property owner. Judges are less likely to order someone to remove a retaining wall, relandscape property, or redo a culvert.

Homeowners' Insurance

Insurance in water damage cases is tricky. If the water comes into your home from an inside source -- say, from a pipe in the townhouse next door -- your ordinary homeowners' insurance should come into play. Contact your agent; your company may pay for your damage and then go after whoever caused it for repayment.

However, when the damage comes from outside rising water, you may need flood insurance, even if your neighbor's action caused the problem. If the problem was caused at least in part by a neighbor, your neighbor's company may well pay you directly. The neighbor's insurance company might also tell your neighbor to correct the problem -- or risk cancellation of the insurance policy.