Watford battled back from two down to secure a dramatic victory in a five-goal thriller at the Ricoh Arena.
Coventry took the lead in the 10th minute when Clinton Morrison set up Freddy Eastwood to slot home, and Robbie Simpson's free-kick made it 2-0.
But Tommy Smith replied when he tapped in after his penalty had been saved and Grzegorz Rasiak headed in to equalise.
Tamas Priskin rounded off the comeback from six yards, before Daniel Fox's late red card for violent conduct.
Coventry boss Chris Coleman: "We were 2-0 up and not in trouble but had 10 minutes of mad defending.
"It's not a good sign and I cannot keep saying the same things.
"You learn or you don't. You are good enough or you are not. And we are not.
"Last year we stayed up by a point and this year we are clear of that, but we are still 17th and the league doesn't lie."
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Watford boss Brendan Rodgers:
"I wasn't happy at half-time. We'd played not bad and some of our passing and moving was not bad and we looked like we could score goals.
"But we were not aggressive enough in our defending and needed to penetrate more offensively.
"We kicked on and showed how we've been since January and to come away with three points, I was delighted."
Coventry: Westwood, Osbourne (Grandison 90), Ward (McPake 46), Turner, Hall, Simpson (Cain 77), Gunnarsson, Doyle, Fox, Eastwood, Morrison. Subs Not Used: Ireland, Thornton.
Sent Off: Fox (82).
Booked: Hall, Turner.
Goals: Eastwood 10, Simpson 54.
Watford: Loach, Mariappa, DeMerit, Williamson, Doyley, McAnuff, Cork, Jenkins (Rose 65), Smith, Priskin (Cauna 90), Rasiak. Subs Not Used: Lee, Harley, Stepanov.
Goals: Smith 58, Rasiak 61, Priskin 74.
Att: 17,195
Ref: Russell Booth (Nottinghamshire).
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