According to nolo.com, if a neighbor is legally responsible to water damage you suffer, you may be entitled to:

* Compensation for cost of repairs and replacements. * Compensation for expenses such as having to stay at a motel. * Compensation for mental distress, if you have suffered an underlying physical injury. * Reimbursement for medical expenses.

Punitive damages, if a neighbor acted maliciously. For example, if it could be proven that neighbor Joe rigged kitchen sink leak up to specifically flood out Phyllis' living room out, then court would not only compensate Phyllis for damages, but may also order neighbor to pay extra money to her as punishment for malice.

However, if neither parties have a renter's insurance policy covering water damage, you'll have to go to small claims court to get compensation, and sometimes it's not even worth hassle. In order to avoid having to give in and pay for damages, or give up and go to court, it's important to invest in a good renter's insurance policy. Contact your local insurance agent to decide which policy gives you most coverage.

Another moral to story? When looking into rental property, it is incredibly important to scrutinize lease. Some landlords state specifically that they will keep all electrical and plumbing systems in good, working condition, but others - as in Phyllis' case, only claim responsibility for exterior upkeep of complex. If you are already living in a rental unit and your manager/landlord does not take care of these things, you should definitely invest in a good renter's insurance policy to avoid future problems.

5. Consider security.

Does building have controlled access? If so, are exterior security gates and doors closed? Are locks in working order? Does your individual unit have secure door locks and window latches? (Some states have specific laws regarding minimum security devices for apartment units.) Does building have a security service? If so, is a guard on duty 24 hours or does he or she just drive by periodically?

6. Ask about shared facilities.

Does building have a swimming pool? A recreation or fitness room? Tennis courts? Laundry facilities? Who is allowed to use those facilities and during what hours? Is there an extra fee charged for use of facilities? Where are facilities located in relation to your prospective apartment? Do you really want to live poolside or near laundry room?

7. Ask about utility costs.

Is water bill paid by owner or separately by tenants? Are electrical or gas utilities included in rent? Is there a single thermostat for entire building? If so, who controls it?

8. Take notes.

Before you move in, document condition of your unit and make note of any nonfunctioning doors or windows, leaking plumbing, missing fixtures, stained carpets and so on. Ask your landlord to initial a copy of your documentation to prevent disputes when you eventually move out. Better yet, take pictures or make a video of premises before you bring in any of your furniture or belongings.