Neighbor's Cement Wall Falls on Insured's Building

[Susan Baxter]

Who's responsible? Who's insurance will pay?

Our insured's restaurant was heavily damaged when the neighbors 10' cement wall fell on their building. Our insured knew it was going to fall for 5 years after a new neighbor moved in next door. New neighbor did some landscaping or something which somehow was the beginning of a ground water problem around the wall that caused the wall to lean more and more until it ultimately fell on our insured's building.

Thank you for your input.

 

[Josh]

First, this is an excellent adjuster question.

That said, the question of liability will most likely be based on whether or not the neighbor had knowledge of whether or not the wall was going to fall. Odds are it's your clients insurance that will pay out, but if it's possible to prove that the neighbor was being negligent then there may be a basis for expecting the neighbor's insurance (or the neighbor) to pay.

 

[Guest]

The insured's commercial policy will respond if their property coverage is special form. The insured's carrier may seek reimbursement from the neighbor.

 

[Dudley76]

The insured's commercial policy will respond if their property coverage is special form. The insured's carrier may seek reimbursement from the neighbor.

I would bet real money on immediate subrogation.

 

[Soaringagent]

Wow, this is interesting... please let us know what happens.

 

[Bertolinoins]

Have you carrier take care of the repair and let them subrogate.