Insurance payout for Wang Fuk Court fire not $1m per flat, clarifies industry body

The Hong Kong Federation of Insurers has refuted rumors that each Wang Fuk Court owner would receive HK$1 million from the HK$2 billion building structure insurance limit, explaining the policy covers restoration of the building, not direct cash to residents.

The Hong Kong Federation of Insurers has clarified that the building structure insurance for Wang Fuk Court, commonly called fire insurance, aims to restore the damaged building to its pre-fire condition rather than distribute cash directly to owners.  

The policy covers basic structural elements such as ceilings, floors, walls, and window frames across the entire block, including common areas like lobbies and lifts. 

The HK$2 billion figure is only a maximum limit; the actual payout depends on professional assessments of rebuilding costs and is not divided equally among households.  

Chief Executive Selina Lau emphasized that insurance compensation follows the collective decision of owners on the estate’s long-term future, which includes options to repair, rebuild, or sell the property to the government. 

If owners agree to a unified sale to the government, the insurance claim rights transfer to the government, and residents receive cash from the sale instead of handling insurance separately.  

Lawmaker and Housing Authority member Scott Leung noted that the insurance is purchased collectively by the owners’ corporation, not individually, making per-flat payouts impractical—especially given the near-total loss in some units. 

He said government acquisition would simplify matters, sparing residents lengthy, complex processes like forming committees, hiring experts, and pursuing claims over years.

Owners could then focus on relocation with a single payment that incorporates insurance value, avoiding prolonged disputes and burdens.  

The government is expected to announce a long-term rehousing plan for Wang Fuk Court owners soon.