Small Bathroom Renovation

Is the contractor responsible if the damage is done during the renovation of older home?
I have a house built in 1978. A contractor was hired to replace the floor in the upstairs bathroom and add tile. Apparently, the plumbing code has changed since then and the contractor was using nail the cement board on the basis of building code today and punctured a hole in the pipe. She knew immediately that hit a pipe, but said that the pipes were too close to the ground and was not his fault. The contractor has completely denied negligence, saying that's not his fault that the tubes are located where they were. I mean, how am I supposed to know, I'm just the landlord, not the expert. There was over $ 20K in damage the house of the leak. My homeowner's insurance under about half of the damage. I would like to be indemnified by the contractor for the rest of the money I lost, but who continue to deny negligence. Any ideas? Do you have a case in small claims court? The contractor is negligent?
General Liability Insurance the contractor should cover this. If the contractor does not have insurance, should be responsible. This is exactly why, contractors must have insurance to work on the house someone. The man who put the nail through the pipe and / or contractor working for the responsible party or his insurance company should cover the damage. I am amazed at your home insurance covers some of the costs.
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