Now that the U.K. rioting appears to be drawing to completion, insurance companies are beginning to tally the cost of the claims that have and will be made by homeowners and businesses.
According to insurers, the impact of the destruction over the long term may be significant, especially in terms of the insurance on property damage.
That said, the effect that it has on insurers may be milder than it could have been as a result of a law that is older than a century and that makes the police responsible for damage that results from riots. If this truly is the case, the police will suddenly face significant financial strain, though some have already protected themselves against damages resulting from riots.
Police in the towns of Bradford, Burnley, and Oldham, in Northern England, had already filed insurance claims in 2001 after they had been held responsible for the cost of repairs to damage caused by riots.
A partner at the Reynolds Porter Chamberlain law firm, Stuart White, explained that “The theory is that the police are responsible for keeping law and order and, if they fail, they pay for the damage.”
That said, homeowners and businesses in the areas most heavily affected by the riots should expect their premiums to rise.
Zurich and the Co-operative have both stated that they are doing as much as they are able to assist those who have been impacted by the riots, which have occurred in areas from Wolverhampton to Birmingham, from Manchester to London, and other areas as well.