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Odds are that the actual liable party here is going to be either the manufacturer of the water heater (depending on how old it is) or the condo association who may be responsible for maintaining it.
The lady below needs to report this to her insurance because I doubt any other party is going to step up and offer to pay without a long investigation. While she waits the water damage is only going to get worse.
Her company has a contract (policy) with her and under the terms of that contract they will pay her regardless of who caused the damage. Then her company will go after who ever they think is liable to seek reimbursement for the money paid and her deductible.
You are not liable just because the water heater was in your condo.
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