England riots: what help is available for affected homeowners and businesses?

Homeowners and businesses in riot-affected areas who have had property damaged or stock stolen will want to know what help is available to get them back on their feet.

Some homeowners have had their windows smashed or their front wall knocked down, other people have had their cars torched, while supermarkets, shoe shops and other retailers have been looted.

The insurance industry said it was too early to give any cost estimates for the sector. However, trade body the Association of British Insurers (ABI) said on Monday that “insurers appreciate this is an incredibly stressful time and will be on hand to do everything they can to help customers as quickly as possible”.

I’m one of those affected – what are my rights?

For those caught up in the chaos who did not have adequate cover in place, or were not insured in some cases, there is some good news in the form of legislation that offers official compensation.

The Riot Compensation Act 2016 , which replaced the Riot (Damages) Act 1886, gives eligible victims of criminal damage or loss during a riot the right to compensation .

If you have got insurance, you must claim via your insurer first. So if your car was damaged, you need to contact your motor insurer, or if the windows of your home were smashed, you need to talk to your buildings insurance provider.

Physical damage to homes or businesses is covered as standard by most household and business insurance policies, said the ABI, adding: “Most comprehensive motor insurance also includes cover for damage to your car.”

Most commercial insurance policies will cover businesses for damage to the premises, including any interruption to business operations.

“If you have been affected, contact your insurer so they can advise on next steps,” said the ABI.

What’s the first thing I should do?

Report the crime to the police, if you have not already. You should be given a crime reference number, which you may need when dealing with your insurer or claiming from the official compensation scheme (you can still submit a claim for compensation if you are not given a crime number).

What if I’m not insured or my insurer rejects my claim?

This is where the official riot compensation scheme provided by the act steps in.

This enables people to claim compensation from the relevant police “claims authority”. For most of England and Wales, this will be the police and crime commissioner for the area where the riot took place. But in London, the claims authorities are the Mayor’s Office for Policing and Crime, and the Common Council for the City of London police area. For contact details, go to the police force’s website.

If you are the owner of a building affected by a riot, you can claim for damage to its structure. If you are a tenant/occupier of an address, you can claim for your damaged or stolen contents. A business can claim for things such as damaged or stolen stock, including business-related items stored in a vehicle.

Another example would be the cost of repairing or replacing a riot-damaged or stolen car that only has third-party insurance cover (though if the vehicle is uninsured and on the road it will not qualify).

However, the act does not cover personal items held outside a building, “consequential loss” – for example, where a shop is out of pocket because it was unable to trade for a while – or personal injury.

In order to qualify for redress, victims need to demonstrate that the damage or loss they suffered was as a result of a riot, as defined in section 1 of the Public Order Act 1986 .

You have 42 days to make your claim from the date the riot ends. If you try to claim on your insurance but are turned down, you have 42 days after that to approach the official compensation scheme.

The compensation may take the form of cash or repairs paid for by the claims authority.

My shop wasn’t physically damaged but I wasn’t able to trade for a while and have lost business as a result

This would not be covered under the act. Some commercial insurance policies provide cover if the premises were not damaged but the business’s trade has been affected. This sort of thing will often be covered by business interruption insurance.

What if I need immediate help?

For emergency assistance, look for notices on council websites and in the local press. If you need urgent access to funds for alternative accommodation because your home is now uninhabitable, the claims authority may be able to rush through an interim payment.

Will this push up people’s insurance premiums?

The government has said that is a business decision for insurers – however, insurance companies are normally allowed to claw back the compensation they pay out to individuals from the relevant claims authority later. “This should reduce any impact a claim might have on your premiums,” the government said.