insurance claim process

I am part of a group that supports a facility owned by a park district. 2 years ago a storm occurred which caused damage to the facility. The group found out in April 2017, there was insurance money available for the repair - but was told there was a deadline of the end of the year (this was difficult due to another situation). In early July we are told if we provide a quote (bid) from the repair people the district can then receive the money from the insurance company and they will keep it on account for us.

Question: is it normal for an insurance company to not pay the claim for over 2 years? Is there a deadline for payment? Must we fulfill the repair by the certain date? In HO Insurance - if the item isn't repaired and damaged again - it's tough on the Homeowner - it's not covered because it wasn't repaired.

My suspecion (sp) is that the Park District discovered they couldn't put this money into the 'general fund and have to give it to the group fo repair, but I believe they hope we can't get repairs done & it will revert to their general funds.

We don't have a good relation with the district.