My neighbor bogusly claims that we have flooded her apartment
I guess I'm not alone on this. I bought a property. We moved in. The following morning my neighbour from the apartment below came to say welcome and that we had flooded her apartment. I was totally caught off guard. I didn't have any insurance as I was in the process of analyzing options. There were never any calls for settlement after this morning. We even volunteer to help this person and gave her our phone number, thinking that we could arrange a settlement but we were going to explore the real cause of this leak/water. We even went to our building manager to inform it and he said that since there was no negligence from our side, that she was probably not going to do anything.
We didn't hear anything until 5 months later. This lady didn't say anything nor tried to contact us, nor her insurance company. Today I received a subrogation demand letter. This "lady" is claiming for a new kitchen, floors, furniture, appliances of the entire apartment. I took pictures on her kitchen that same afternoon because I told my husband that we better did, but not of her entire apartment. There was some water but we saw nothing major and nothing like what she is claiming. Our apartment was empty when that might have happened, if it ever did. We had renovations in our unit but we didn't touch any plumbing nor floors or walls (just paint and replacing the countertop, for which we closed the valves, that's all). This is ridiculous. Our kitchen didn't have any trace of any kind of water or damages. We even though there might be a broken pipe. The fact is that this lady never said anything about claiming for repairing her entire apartment and now she wants everything new, when here stuff is not even in good shape. The adjustors indicates the price as if this was a brand new apartment. I'm an architect (not licensed). This is totally unfair. I'm desperate. I really don't know what to do. We have no means to pay for what she is claiming. It's not even negligence. Can I get some professional advice please? I'm panicking. My husband lost his job and with this big mortgage the last thing I need is a problem like this. Honestly, I'll be very grateful if you can guide me. Thanks.