Property No 2 - "Riot " Damage No 1 - Compensation and Insurances Questions..?

The reader is advised that the information in this post is based on the Prime Minister's recent statement and other published information - it is important that anyone needing help should contact their insurer or other advisers. 

A person who has suffered damage to building or property or who has property stolen is likely to be indemnified in some way. Two possible ways are:

• indemnification under a policy of insurance; or
• compensation under the Riot (Damages) Act 1886. 

Where insurance is paid the insurance principle of "subrogation" means that the insurance company will be able to recocover the insurance payments under the 1886 Act. 


No Insurance Policy
Where an owner and/or occupier is not covered by an insurance policy it seems that the only recourse would be to make a claim for compensation to the local police authority under the Riot (Damages) Act 1886  procedures. Speedy action is of the essence.

Insurance Policy - No Valid Cover
In many standard insurance policies "riot and civil commotion" are not covered but may be covered as a "special peril". In all cases the insured should get it touch with their insurance company. Again the 1886 Act is likely to give effect to compensation by direct application.

Insurance Policy - Valid Cover
If the policy covers the loss, a claim will be considered by the insurance company under the policy. It is likely best to proceed on this basis but as noted above the subrogation will apply..

"Riot" Compensation
Here the 1886 Act is likely to apply and a claim should best be made to the police authority for the area in which the property is situated. The period of claim has been extended to 42 days but every endeavour needs to be made to act quickly.

Buildings owned by Bodies in the Public and Voluntary Sectors
The 1886 Act appears to apply to most kinds of urban buildings including churches, hospitals and other buildings owned by bodies in the voluntary and public sectors. 

Burden of Compensation
Although the police are the "compensating authority" the burden of the compensation provisons will be borne by the payers of local taxes and/or the national taxpayers (to the extent that the Coalition government contributes.

Future
It may be that past calls for the remains of the Riot (Damages) Act 1886 to be repealed will be heeded. The Act is a shadow of the original but the effect is that indicated above. The issue is a fourfold question,namely:

• Should the government (taxpayers) bear the brunt of such losses?
• Should the insurance industry take up the challenge make the "special peril" a standard?
• Should the local community (local goverment tax payers) take the brunt?
• Should we all be self-insured?