Is it permissible to demand compensation for damages resulting from water leakage from a neighbor's house, or does that contradict the rights of neighbors and the values of Islam?

The rights of a neighbor are great, and the Prophet, peace and blessings be upon him, encouraged treating them well, enduring their harm, and refraining from harming them. It is permissible for your mother to demand compensation from the neighbors for the damage resulting from water leakage if that leakage was due to their excessiveness and transgression. However, if it was without transgression, then they are not liable, because the owner disposes of his property in the usual manner and is not liable for damage to his neighbor unless there is transgression. Nevertheless, it is preferable to overlook a neighbor's slip, seeking reward.