Legal Question in Real Estate Law in California

Your insurance company, and those of the other condo owners, will file claims against your tenant's renters insurance company.

It would require a more thorough review of all the facts, including your lease and probably the condo documentation, to be sure, but most likely you are liable to the owners of the other units and the HOA for damage outside your unit caused by a condition that you permitted in your unit, even if you didn't know it was a problem. However your tenant is liable to you for what is called "indemnity," meaning basically reimbursement for whatever you have to pay due to their faulty appliance. You may also have an indemnity claim against whomever installed the water line, if the plumbing work caused or contributed to the failure. As Mr. Stone points out, however, all these claims will be taken over by the insurance companies who pay out on the damage claims. You should just turn this over to your insurance company, and hope the tenant has renters insurance, because they will ultimately bear the expense.