A storm sweeps the industrial park, rips off the leased factory’s roof, floodwater ruins the production line — suddenly last year’s property policy becomes the enterprise’s most valuable asset. But having insurance does not equal getting paid: one procedural misstep — late notice, a disturbed scene, missing documents — can let the insurer lawfully deny the claim. Mastering the procedure means securing the money.
Conditions for compensation
Before procedure, check three prerequisites: (1) the property policy was in force when the event occurred (premiums paid, no suspension); (2) the causing event falls within the agreed scope — fire needs fire cover, storms need a storm clause (many basic fire policies exclude natural disasters); (3) the claimant holds an insurable interest in the property — for assets on leased land, the tenant insures the factory and machinery it owns, and may also cover leased assets if the policy records it. Missing any one, the claim dies at the first gate.
Claim procedure: five steps
Step 1 — notify the insurer immediately. Call at once, then confirm in writing within the contractual deadline (typically 24–72 hours depending on the policy — re-read your own contract, do not guess). Late notice does not automatically kill the claim, but the insurer may invoke it to reduce payment if delay worsened the loss or hindered survey.
Step 2 — protect the scene, mitigate loss. Do not clear, repair or move damaged property before the surveyor arrives, except emergency measures against spreading loss (covering, power cut-off). All reasonable mitigation costs are additionally covered — keep every invoice.
Step 3 — cooperate with the survey. The insurer sends a surveyor (or hires an independent one) to record the scene, photograph and minute it. The buyer may demand re-survey on disagreement — at the requester’s cost, unless the new result proves the insurer wrong.
Step 4 — file the claim dossier. A complete file: the claim form (insurer’s template); policy copy; proof of ownership/insurable interest (machinery purchase contracts, factory acceptance records); police/fire authority reports (for fire/explosion events); loss evidence (repair quotations, replacement invoices, audit reports); and for assets on leased land — the land/factory lease contract proving lawful use and insurable interest.
Step 5 — receive payment. Once the file is complete and the amount agreed, the insurer pays within the contractually agreed period (the 2022 Law on Insurance Business and the policy set the payment deadline — read this clause at signing, not after the loss). Late payment entitles the buyer to late-payment interest as agreed or provided by law.
How long does settlement take?
No universal “standard” figure — timing follows the contractual agreement and the loss’s complexity. In practice: small losses with complete files settle in weeks; major losses (a burnt-down factory) needing complex surveys and document cross-checks can take months. The buyer should chase proactively in writing, setting response deadlines for each supplementation round — silent waiting is the surest way to have a file “pickled”.
Claim denied: where to complain?
A four-rung ladder: (1) written complaint to the insurer itself, demanding clear reasons and clause citations for the denial; (2) if unsatisfactory, complain to the Ministry of Finance (the state insurance regulator); (3) sue in court or go to arbitration (if the policy has an arbitration agreement); (4) throughout, preserve the full file, survey records and correspondence — decisive evidence if the dispute escalates. Mind the limitation period: the general contract limitation under the 2015 Civil Code (3 years) — do not let it lapse while pursuing administrative complaints.
Frequently asked questions
1. How to claim for fire or storm damage to assets on leased land?
Five steps: notify the insurer at once (24–72 hours per policy); protect the scene; cooperate with survey; file a complete dossier; receive payment within the contractual period. First verify: policy in force, event within scope, your insurable interest.
2. What does a property claim file contain?
The claim form; policy copy; ownership/insurable interest proof (machinery contracts, factory acceptance); police/fire reports (fire/explosion); loss evidence (repair quotes, invoices); and the land/factory lease proving interest in on-leased-land assets.
3. How long does claim settlement take?
Per the policy — no universal figure. Small complete files: weeks; major complex losses: months. Chase proactively in writing; do not wait silently.
4. Where to complain about a denied claim?
Four rungs: insurer complaint, Ministry of Finance complaint, court/arbitration. Preserve everything as evidence; mind the 3-year contract limitation period.
Key takeaways for investors
- Having insurance does not equal getting paid — proper procedure produces money: timely notice, scene preservation, complete files.
- Check three conditions first: policy in force, event within scope, your insurable interest.
- On-leased-land asset files must include the lease — proving the tenant’s insurable interest.
- Denied: complain to insurer, then Ministry of Finance, then court/arbitration; keep all evidence and mind the 3-year limit.
This article has been quality-reviewed by the FLAW AI Legal Council. Content is for legal reference only and does not replace lawyer advice for specific cases.
