Step 1: Assess the Situation and Ensure Safety
Before doing anything else, ensure the physical site is stable and any immediate hazards are identified. In cases of natural disasters, flooding, or impact damage, avoid entering the premises until emergency services have completed their initial assessment.
If hazards such as structural instability or utility damage (like exposed wiring or gas smells) are present, wait for qualified experts to carry out a site inspection. While these hazards must be managed immediately for safety, please note that policy limits, conditions, and exclusions apply—standard policies typically cover damage from specific insured events rather than general maintenance or wear and tear. Refer to your PDS and FSG for details on what constitutes an insured event.
Step 2: Notify Authorities (if applicable)
For vandalism, suspected arson, or malicious damage to the building structure, contact the police and file an incident report. You can file an incident report via the Police Assistance Line or online for non-urgent matters. Insurers may require a police reference or case number as part of the claims process.
When speaking with the police, make sure to record the following details for your records and insurance documentation:
- The police station and incident number for your report
- The date and time the incident was reported
This information, along with photographic or video evidence, may be requested during claim lodgement.
Step 3: Contact Your Insurance Broker or Insurer
Next, reach out to your insurance broker or insurance company as soon as possible via the available claims reporting channels or an online form. Delays in notification can sometimes impact your claim, especially if it leads to additional property damage.
Provide:
- A clear description of what has been damaged, destroyed, including approximate value and extent of physical loss
- The date and time of the incident (or when it was discovered)
- Actions taken immediately after the event to prevent further physical loss
Supporting materials such as repair estimates, photos, and videos may assist the insurer in assessing your claim.
If you are unsure about your policy coverage, your broker can help explain inclusions, limits, and exclusions outlined in your Product Disclosure Statement (PDS), including that commercial property insurance typically applies to the building structure and any landlord-owned fixtures.
Step 4: Prevent Further Physical Loss or Damage to the Property
Most property insurance policy terms require you to take reasonable steps to minimise further damage. This is often referred to as your duty to mitigate further physical loss, ensuring that a manageable issue (like a leak) doesn’t turn into a major structural failure.
Examples include:
- Covering a damaged roof to reduce water entry
- Securing broken windows or doors
- Relocating movable items or securing affected areas to reduce further damage where applicable
Keep receipts for any emergency repairs or materials. Depending on your policy terms, these costs may be considered as part of your claim.
Step 5: Document the Damage
Thorough documentation is important for supporting your claim and assisting the insurer’s assessment.
Capture:
Damage to fixtures, or building structures such as:
- Cracks in external brickwork or structural foundations.
- Water stains on permanent ceilings or walls from a roof leak.
- Fire damage to “fixtures” like built-in cabinetry, ducted air conditioning units, or integrated lighting.
- Impact damage to fences, gates, or the main building façade.
Entry points in cases of forced access such as:
- Smashed glass in storefront windows or doors.
- Jemmied or bent door frames and damaged locks.
- Cut security shutters or roller doors.
- Damage to the building’s fixed alarm system or exterior security cameras.
Surrounding areas that show the extent of impact such as:
- Debris from a fallen tree scattered across the car park and roof.
- The path of floodwater marks on the exterior building siding.
- Proximity of adjacent building fire damage to the property’s external walls.
- Damage to the “Common Areas” like shared foyers or elevators (if part of the landlord’s building structure).
Note: This policy applies to the building structure and landlord-owned fixtures only; it does not cover tenant-owned stock, contents, or professional liabilities. Limits, conditions, and exclusions apply; please refer to your PDS and FSG for details.
Next, prepare an itemised list of affected building areas and fixtures. Include relevant records, such as installation details and repair estimates. This information helps support the claims assessment process.
Step 6: Submit the Claim Form and Supporting Documents
Your insurer will provide a claim form, available either online or as a downloadable PDF. Complete it carefully and include all required information, such as:
- Policy number
- A clear summary of what happened (date, time, and type of incident)
- Estimated value of physical loss or damage
- Supporting documents (receipts, contracts, or lease agreements)
- Visual evidence of the damage
Before you submit the form, review it carefully. Errors or missing information can delay your claim and may lead to follow-up questions from the insurer.
Step 7: Cooperate With the Claims Assessor
An insurer may appoint a claims assessor or other specialist to review the damage. They will assess the claim in line with your policy terms, including limits and conditions.
Providing accurate information and cooperating with requests may assist in progressing your claim.
Step 8: Wait for the Outcome and Assessment
Once all information has been reviewed, the insurer will assess your claim based on the terms, conditions, limits, and exclusions outlined in your Product Disclosure Statement (PDS) and Financial Services Guide (FSG).
During this process, the insurer may:
- Review the report and documentation – examining the assessor’s findings, photographs, receipts, and any other supporting evidence you have provided.
- Confirm what is and isn’t covered – comparing the details of the incident with the inclusions and exclusions outlined in your Product Disclosure Statement (PDS).
- Decide on your claim – determining whether it will be approved in full, partially paid, or declined.
If your claim is approved, you will receive:
- A payout amount, based on repair, reinstatement, or agreed cash settlement value.
- Details of any applicable excess – the amount deducted from your payout as specified in your policy.
- Instructions for repair or reinstatement procedures – in cases where the insurer manages the process directly through approved suppliers or contractors.
If declined or partially paid, you can pursue dispute resolution through the Australian Financial Complaints Authority (AFCA). Being aware of these steps can help you better understand the outcome process and take informed action if you disagree with the decision.
Step 9: Finalise Repairs and Keep Records
If you are arranging the repairs yourself, ensure that you engage qualified and licensed tradespeople to carry out the work. This not only ensures the repairs meet industry standards but also helps satisfy any requirements set by your insurer. Always request clear, itemised invoices that specify the scope of work, materials used, and associated costs.
Maintain comprehensive records throughout the repair process, including:
- All communication with contractors, service providers, or suppliers, such as emails, text messages, and written correspondence.
- Receipts, quotes, and work orders – keep these organised and dated for easy reference.
- Details of any changes, delays, or issues that arise during repairs – document reasons for variations in cost or schedule.
These records can be invaluable if your insurer needs to review the quality or cost of the work at a later date. They may also be critical if you need to make another claim in the future for related issues, as they provide proof of what was repaired, when, and by whom.
Additional Tips for a Smooth Claim Process
- Review your policy regularly to ensure coverage reflects your current needs
- Understand your obligations under the policy, including maintenance requirements
- Store digital copies of key documents in a secure, cloud-based platform for immediate access during a claim.
- Ensure a Provide accurate and complete information during the claims process
Know Your Process Before You Need It
Filing a commercial property insurance claim can feel complex, but understanding the process and preparing documentation early may help support a more efficient outcome.
If you’re a landlord or property owner, it’s important to understand that commercial property insurance generally covers the building structure and fixtures only. If you operate a business from the premises, a Business Insurance Pack (BizPack) may include cover for contents and stock, business interruption (loss of income), and combined public & products liability. Building cover is typically only included when the business owner also owns the premises, subject to policy exclusions.
For more information about policy options, terms, and conditions, refer to the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG), or speak with FD Beck Insurance Brokers for general advice.
General Advice Warning:
This information is general in nature and does not take into account your personal objectives, financial situation, or needs. You should consider whether the information is appropriate for your circumstances and review the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) before making any decisions.
