Possible monetary compensation depends on the agreed insured event, the policy, its rules and the transaction facts. Advertising about “title protection” is insufficient.
This guide is for a property buyer assessing the risk of a future challenge to a seller’s transaction in Russia. Checked on 25 October 2026 against operative Civil Code Articles 942, 943, 944 and 961. It does not compare particular insurance products or premiums.
🛡️ Seller bankruptcy and an insured event are different
Opening bankruptcy proceedings, filing a transaction challenge, declaring a sale invalid and losing ownership can happen on different dates. None should be assumed to be the insured event without reading the contract. Civil Code Article 942 requires agreement on the property or insured interest, the event, the sum insured and the policy term.
Before paying the premium, locate the answer in the policy and rules: does coverage include loss of ownership following invalidation of the purchase in the seller’s bankruptcy, and on which grounds? If unclear, request a written explanation and an agreed contractual term where needed. General advertising assurances do not replace policy wording.
📋 Five policy sections to review
| Section | Locate | Ask in writing |
|---|---|---|
| Insured event | The precise event and covered grounds for loss of title | Is bankruptcy avoidance on the relevant ground covered? |
| Timing | Coverage dates, event date and claim notification conditions | How do the purchase, dispute, court order and policy expiry interact? |
| Amount | Sum insured, loss calculation, deductible and beneficiary | Does coverage reflect the purchase price or another limit, and who receives payment? |
| Exclusions | Agreed limits on coverage and the parties’ duties | How are known debts, connections to the seller and transaction facts treated? |
| Claims handling | Notices, records, insurer involvement in the defence and costs | When and where must a received claim or court application be reported? |
These are individual review questions, not a statement that every policy has identical exclusions. Article 943 governs incorporation of standard insurance rules and agreement on changes. Obtain and retain the applicable rules with the policy and endorsements.
📁 Information and records to disclose
Under Article 944, disclose known circumstances material to the insurance risk where they are not, and should not be, known to the insurer. Matters expressly identified in the standard form or a written insurer request are material in any event. Knowingly false information differs from an unanswered question; do not treat every gap as automatic invalidity.
- Retain the completed questionnaire, responses, requests and evidence of delivery.
- Reconcile the price, payments, seller and property information with the purchase agreement and due diligence.
- Identify known disputes, encumbrances and other matters the insurer asks about.
- Check consistency between the questionnaire, attachments and policy.
Question outline before entering the insurance contract
“Please identify the provisions in the draft policy and rules covering loss of ownership of apartment … following invalidation of the purchase in the seller’s bankruptcy. Please explain the relevant grounds, exclusions, timing conditions, compensation calculation and notice procedure when an avoidance application is received. Transaction information and records have been supplied in attachments … .”
Use facts rather than assumptions. If the response changes coverage, check that this is reflected in the contractual documents.
📨 If a dispute has already begun
- Retain the application, court order and evidence of when they were received.
- Check any contractual duty to report claims or disputes before the proceedings end.
- Article 961 requires prompt notice once the insured event is known; comply with an agreed notification period and method.
- Use the proper delivery method, retain proof and request a list of any missing documents.
- Defend the purchase at the same time: notifying the insurer does not replace the court response, evidence or procedural deadlines.
Late notice does not invariably mean refusal. Article 961(2) contains conditions and exceptions relating to the insurer’s knowledge and whether missing information could affect its duty to pay. Assess those against the records. Neither automatic payment nor automatic loss of coverage can be promised.
🧮 Illustration of a coverage limit
The apartment price is RUB 9,000,000 and an illustrative policy states a sum insured of RUB 7,000,000. The difference is 9,000,000 − 7,000,000 = RUB 2,000,000.
This merely shows the difference between the price and the stated limit. It does not calculate compensation: the covered event, actual loss, valid policy terms, any deductible and other relevant circumstances come first. Court costs should not be assumed covered either.
Frequently asked questions
Does the policy prohibit a challenge to the purchase?
No. Insurance does not prevent an authorised person from going to court. The insurance agreement governs possible compensation for the agreed event.
Does every seller bankruptcy trigger payment?
No. Compare the actual event with the insured-event definition and the particular policy conditions.
Is the first policy page enough?
No. Review the applicable rules, endorsements, exclusions and individually agreed terms.
Can the dispute be reported only after the final judgment?
Check duties to report claims and court applications separately from insured-event notice. There is no universal permission to wait.
Related: challenging an individual’s transactions. This guide concerns coverage review and provides no guarantee of retaining title.
Primary sources
Review the policy alongside the purchase documents
We can assess the coverage wording and transaction facts. Bring the draft policy, rules, questionnaire and property records.
Initial consultation