The end of the year is a busy time for property owners and businesses. Amidst financial reports, internal audits, project closings, and new year preparations, one important thing is often overlooked: property insurance extension.
Forgetting to renew your policy isn’t just a minor oversight; the consequences can be fatal. Many property owners only realize the risk when it’s already occurred, and by then it’s too late. This article will guide you through the real consequences of lapsing your policy, including examples of significant losses that actually occurred, and what you can do today to avoid them.
Before reading further, you can immediately have a free consultation regarding policy conditions, grace periods, or the renewal process via:
📞 WhatsApp 0811-850-773
📩 Email: halo@lngrisk.co.id
As an insurance broker with over 30 years of experience handling property insurance policy renewals, L&G Insurance Broker is ready to help you ensure your coverage remains active without any risk gaps.
Beware! Your Grace Period Could Be Almost Over
Imagine this happening to you: you’re in the busy end-of-year period. Lots of invoices are coming in, reports need to be completed, and the team you’re chasing a target. Amidst the chaos, you might miss a small notification from your insurer or broker about renewal. You think you’re still safe.
Suddenly… a small fire breaks out in the warehouse, or a main pipe leaks, destroying inventory. You panic, open your policy to check the coverage, and discover the harsh reality:
Your policy has lapsed. No coverage. No claim payments.
The grace period you thought was still long has actually expired. In the property industry, such incidents are no fiction; they’re real and happen frequently at the end of each year.
Here’s why you should take action before reading any further:
✔ Check your policy expiration date now
✔ Contact the broker if you are unsure of the status
✔ Make sure your renewal has been processed
Case Study: Billions of Rupiah Lost When Policy Renewal Was One Day Late
Case 1: Logistics Warehouse Fire – 3-Day Policy Lapse
A logistics company in Jakarta owns a large warehouse filled with imported electronics. Its policy expires on December 12th. The administration team plans to extend it the following week due to work overload.
However, on December 15th, an electrical short circuit triggered a fire in one of the sections. The fire was not large, but it was enough to destroy stock worth over Rp 4.2 billion.
After checking, it was found:
- The police have lapsed for 3 days
- Grace period does not apply because there has been no payment
- Automatic claim rejected
The company had to cover its full losses, lose contracts with two major clients, and rebuild part of the warehouse with its own funds. All of this happened because it forgot to renew its property insurance.
Case 2: Textile Factory Flooded – Renewal Delayed Due to Incomplete Documents
A factory in Bandung underwent major renovations to its production area, but these changes were never reported to the insurer upon renewal. When the renewal period arrived, the insurance company requested updated building data, fire protection, and asset values.
Incomplete documents, delayed processing, and expired protection period.
Two weeks later, extreme rains flooded the industrial area. Total material losses exceeded Rp 7 billion, not including 14 days of production downtime. Because the policy had not been reinstated, the claim was denied in full.
Case 3: Private Office Loses Technology Assets – Compliance Warranty Not Fulfilled
A private office in Surabaya had a policy requiring 24-hour CCTV as part of its warranty. Upon renewal, an auditor discovered that several cameras were no longer functioning. The renewal was postponed until repairs were made.
During this pending period, the office experienced an internal theft that damaged several servers.
The loss reached Rp 800 million. Because the policy had not been renewed and the warranty had not been fulfilled, the claim could not be processed.
Why Do Many Property Owners Fail to Renew on Time?
- End of Year Activities
The end of the year is a peak time for administrative activity. Many business owners focus on finances and forget that their protection also has a time limit.
- Lack of Expiration Date Monitoring
Most companies do not have an automated reminder system or do not use professional brokers.
- Not Updating Asset Values
When property values rise due to inflation or renovations, the Total Insured Value (TIV) must be increased. Because the updating process is considered cumbersome, many people delay.
- Warranty & Compliance Issues
Requirements such as fire extinguishers, hydrants, alarms, and CCTV are often not verified before renewal.
- Outstanding Payment
Unsettled premium payments may result in your policy being automatically cancelled.
Negative Impacts of Not Renewing Property Insurance
Here are the real disadvantages you might face:
- No Protection at All
When the policy lapses, all risk reverts to you. There are no guarantees, no claim payments.
- Direct Financial Loss
Even a small fire can cause hundreds of millions of rupiah in damage.
A major fire? It could cost tens of billions.
- Potential for Bankruptcy
Many MSMEs, small factories, and even medium-sized companies are unable to survive major events without insurance protection.
- Cannot Bill Third Parties
If the fire is caused by an outside party, you still cannot file a claim without an active policy.
- Operational Disruption
Production downtime, renovations, loss of customers, and disruption to the supply chain.
- Company Reputation Affected
For large companies, not having protection makes them look unprofessional in the eyes of clients.
What Should You Check Regarding Property Insurance Renewal?
To avoid repeating the mistakes of many other property owners, do this quick check:
8-Point Property Renewal Checklist:
- Policy expiration date
- Latest asset value (TIV)
- Changes to building or operations
- Outstanding premium
- Unfulfilled warranty
- Claim history (loss history)
- Latest survey or inspection results
- Supporting documents for renewal
If you haven’t checked even one of these items, the risk of lapse is very high.
Why Should You Use L&G Insurance Broker Services for Renewal?
L&G is not just an intermediary, but your property protection partner.
L&G Insurance Broker provides:
- Automatic reminder before the policy expires
- Risk analysis based on the latest asset developments
- Field survey assistance
- Negotiate the best premium to the insurance company
- Review warranty & compliance to ensure claims are not rejected
- 100% claim support until completion
With over 30 years of experience and thousands of active clients, we ensure your property insurance renewal is fast, secure, and risk-free. Don’t let your property’s fate be determined by administrative negligence.
Protect Your Property Before It’s Too Late!
Check before the risk strikes. When the grace period expires and the policy lapses, all losses will be returned to you. Many real-life examples demonstrate how delays can be detrimental to property insurance extension This can result in billions of rupiah in losses, loss of customers, and even bankruptcy. Don’t take that risk. Take action now.
FREE Consultation with L&G Insurance Broker regarding policy conditions, grace periods, or renewal processes via:
📞 WhatsApp 0811-8507-773
📩 Email: halo@lngrisk.co.id
