The Takeaways
- Most standard policies cover perils resulting from riots, civil commotion, and/or vandalism.
- Your vehicle windows are covered. Damage to the auto will be settled on an ACV basis.
- Your structure and your contents will be covered on an RCV basis unless otherwise stated.
- Business Owner Policies (BOP) mandate that specific time lapses which must occur before coverage applies for Business Interruption.
Is damage to my property covered after a riot? It seems as though every media outlet is covering protests, riots, and the aftermath thereof. It is clear to see that social reform and the fight for equality are at the forefront globally. As peaceful protests take place around the country, social media live streams easily give us a front-row seat to the chaos that occurs when peaceful protests turn into riots. But what happens after the riots stop? Who is going to pay for all of this property damage?
You Are Covered… In Most Cases
If you own a property, you likely have multiple insurance policies in place to protect it. A Home Owner Policy will cover your home and a Business Owners Policy (BOP) will cover your business. Fortunately, these policies generally provide coverage for losses associated with riots – although policy language may vary slightly, this type of damage is referred to in your policy as “riot or civil commotion, vandalism, or malicious mischief”. So, unless you have selected a named peril policy that excludes the risks listed above, you should be covered.
Home Owner Policy
A Home Owner Policy will protect the structure and the contents of homes from losses such as fire, explosion, riot or civil commotion, vandalism, and my personal favorite, malicious mischief. Unless altered in your policy by an endorsement, these types of losses to your home are covered on a Replacement Cost Value (RCV). A Public Insurance Adjuster will review your insurance policy and assess the damage to your structure and personal property. Once thoroughly reviewed, a plan focused on maximizing your financial recovery will be presented.
If your property is damaged severely enough, you may be able to utilize the Additional Living Expense (ALE). This portion of your claim will provide funds to be used for a temporary place to live while your primary residence is being repaired, although there is a limit to this coverage. Given the severity of the recent riots throughout the country, there are likely many folks whose homes have been damaged or whose areas are still deemed unsafe to return, thus making ALE a rather valuable policy benefit. In some cases, insurance companies attempt to limit ALE time in order to reduce their expenses for the claim. Your Public Insurance Adjuster will be your advocate to sure that you are living in a place that makes sense both financially and logistically whilst being mindful of the financial limits that exist within your policy.
Business Owners Policy BOP
Like a Home Owner Policy, a BOP will protect the business structure and the contents from losses such as fire, explosion, riot or civil commotion, vandalism, etc. There are some additional coverages like Loss of Income or Business Interruption which can subsidize a business’s income if a covered loss prevents the sales of goods and services after a specific waiting period. Employing a Public Insurance Adjuster from the onset of the claim will exponentially increase the financial outcome of your claim. Oftentimes, your Public Insurance Adjuster can prevent common and costly mistakes early on in the claim process.
Now, Let’s suppose your business is near riots or civil commotion and the authorities impede traffic to and from an area in which your business is operating. Although your business may not be directly damaged by riots, its ability to operate has been indirectly affected folks can no longer easily access you or vice versa. This is known as a “Civil Authority Clause”. In this event, you will likely need to document your previous and current financial health. Public Insurance Adjusters can assist you in identifying and applying for monies lost and owed anytime your business if forced to close its doors or experiences a severe reduction in business from a covered loss.
Although peaceful protests may begin with the best intentions, it is unsettling to see them turn into harmful riots that cause harm to people and the property of others. However, if faced with the hardship of dealing directly with property damage arising from civil commotion, take some comfort in knowing that your loss will be minimized by the coverages discussed.
