Who is responsible for costs when a toilet backs up and leaks to unit downstairs in condo?

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Your personal condo insurance should cover it under the liability section. It will not be a penalty to you.

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Is a condo owner responsible for damages caused to another unit?  If your condo neighbor leaked water in your unit who is responsible?  What happens what the unit above you has overflowed their toilet into your unit?  What happens if raw sewage from the toilet in the condo above leaks into your condo?