Recent protests
The recent protests around the UK, following on from the tragic events in Southport, have caused significant damage with the media reporting buildings and property that have been set on fire and/or maliciously damaged.
If you have suffered damage you will no doubt be looking to make a claim under your policy of insurance. We encourage you to do this as soon possible to ensure you do not breach its terms and conditions.
Unfortunately for your insurer there will probably be no direct recovery opportunity, as it’s likely that either the persons causing the damage are unidentified, or criminal proceedings take precedence, and then it becomes unlikely that they will ever meet any judgement.
There is, however, another route for insurers to recover their outlay (and therefore protecting your claims experience), but it is essential that everyone in the chain acts quickly.
The Riot Compensation Act 2016 (“RCA”)
The RCA governs the compensation for damage caused as a direct result of riots. To qualify for compensation, it must be demonstrated to the police claims authority that the damage caused was as a direct result of a riot.
What is a riot?
A riot is defined by Section 1 of the Public Order Act 1986. This states that a riot is a gathering of 12 or more people, who use, or threaten to use, unlawful violence and who cause a reasonable person to fear for their personal safety.
Who can claim?
Compensation claims can be made by an insurer for re-imbursement after meeting a policy holders claim (in full or part) for damage, destruction or theft resulting from a riot. Where your insurer does not meet your claim in full or in part then you may still be able to make a claim for compensation directly from the police claims authority.
Deadlines
The timescale for claiming for damages is incredibly strict and, if a deadline is missed, then you risk breaching the terms of your insurance and your insurer may refuse to pay out. At best the insurer’s claim for compensation will not proceed and the loss will sit on your claims experience.
- We recommend you immediately report the incident to the police and then to insurers in accordance with the policy terms and conditions (please note this could be required within 7 days or less),
- Within 43 days of the riot, the claim form must be received by the police claim authority,
- Within 91 days following the submission of the claim, further details and supporting evidence must be submitted.
How much can be claimed?
Claims are limited up to a maximum of £1,000,000. Insurers can reclaim for:
- Payments for property damage.
- Alternative accommodation, under certain circumstances, but limited to 132 days from the day the property was uninhabitable.
Under the RCA, you cannot claim for consequential loss, such as Business Interruption, however these losses could be picked up by your insurer if policy coverage is agreed at the time of loss and subject to the policy wording terms and conditions.
Given the tight deadlines mentioned above, it is imperative that action is taken straight away to ensure that claims are considered within the deadlines and redirected directly to the police claim authority should the insurer refuse indemnity.
Our expert in-house Claims Team is ready to guide you through the process. To help us do that, we request that you get in touch as soon as possible, at [email protected] or through your usual claims contact.
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