Insurers can claw back some of the claims costs from the London riots if the police or Home Secretary officially label the recent disruptions as a 'riot' under the Public Order Act 1986.
Insurers could then apply for compensation under the Riot (Damages) Act for loss and damage claims coming from a riot.
The money would be paid back from the police fund for the area affected.
However, according to loss adjuster QuestGates, any claim under the Act must ‘’be made in writing and received by the local police authority within 14 days of the alleged incident”
Insurers will therefore typically include within the claims notification clause to the policy a requirement for any claim for riot and/or civil commotion to be notified to insurers immediately, QuestGates said.
That will include full supporting documentation within seven days of the incident occurring, specifically to prevent a recovery action being turned down by the police authority on basis that the action is time barred, the loss adjuster said.
An ABI spokesman said: "The priority for insurers is to help people through this incredibly traumatic time."
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