In light of the tragic events in Southport last week and the subsequent civil unrest, some of our clients may be faced with the need to pursue property damage claims as a result of the riots. A number of the insurers and our loss adjusting partners are highlighting how the Riot Compensation Act works in order to promote prompt action.

Background

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/maliciously damaged. In the coming days, it is likely that the individual businesses/persons who have suffered damage will be presenting claims under their policy of insurance. Unfortunately, there will be no direct recovery opportunity, as its either likely that the persons causing the damage are unidentified, or criminal proceedings take precedence, and there it becomes unlikely that they will ever meet any judgement. There is another route to recovering insurers outlay, but it is imperative that policyholders and insurers act 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 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. A riot is defined as 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.

Deadlines

The time for claiming for damages is incredibly strict, and if a deadline is missed, then the claim for compensation will not proceed.

• Within 43 days of the riot, the claim form must be received by the 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 claim for:

1. Payments for property damage.
2. Alternative accommodation, under certain circumstances, but limited to 132 days from the day the property was uninhabitable

You cannot claim for consequential loss, such as Business Interruption.

As always if you need any advice or guidance please do not hesitate to contact us on 0161 393 7111.