In our condominium building (42 floors) the rule is that every apartment owner is responsible for any damages to their apartment, even if they are caused by an apartment in an upper floor. This is because otherwise the owners of the upper floors would have to have million-dollar insurance premiums to cover the possibility of a leak in their apartment causing damages to multiple floors below. We had an event where a burst pipe in the 28th floor caused damages all the way down to the 8th floor.

This seems like something where it would make sense for the condo to self-insure with mandatory premiums for everyone, so then everyone pays an equal amount for leaks rather than only those who get unlucky.