How to handle damage resulting from a nearby unit?

This question is submitted by George S. out of Wilmington, MO 

Occasionally a condo unit is damaged as the result of an event in a neighboring unit.

For example, having water leakage from neighboring units, issues related to renovation/construction work, etc. 

Does anyone have it in their HOA documents a policy or procedure example for handling this type of damage stemming from a neighboring unit(s)?  Or is this a problem for unit owners to resolve on their own or via the legal system in the courts?