Damage caused by civil unrest should not impact on people making insurance claims, a Zurich spokesman says, but customers should check their policies

Insurers have said they will pay out to customers who have had possessions damaged and stolen in the riots in London and across the rest of the country.

Some policyholders had been concerned that they wouldn’t qualify for a payout because the losses were a result of civil unrest, but insurers said this wasn’t a problem.

Keith Lewis, a spokesman for insurer Zurich, said: “As a customer it doesn’t matter what is happening – the issue of whether it is classed as rioting or civil unrest rises when we as insurers are trying to reclaim costs. It is a back-office issue.”

Lewis said Zurich had sent a team of loss adjusters to Tottenham early yesterday morning, and had more specialists ready to visit the scenes of other clashes.

The Association of British Insurers (ABI), which is currently putting the cost to the industry at “tens of millions of pounds”, urged those affected to call their insurers as soon as possible.

The ABI’s director of general insurance, Nick Starling, said: “We have every sympathy for residents and business owners who have suffered damage to their properties.

“This is a time of enormous stress for them and their insurers will be on hand to answer any questions that they may have.”

Home and business policies

The ABI said standard home insurance policies should cover fire, looting or damage caused, and that many policies would also cover accommodation costs for those unable to stay in their homes.

Most commercial insurance policies would cover businesses for damage to their premises, it said, including interruption to their business.

Some policies also cover businesses which were not damaged, but whose trade is affected by the aftermath. Owners of businesses which were not damaged but are losing income due to denial of access should check their policies.

The ABI said business owners should act quickly, as many insurance policies required claims to be made within a set time period – often just seven days.

Motor and travel policies

Owners of cars damaged in the unrest will be able to claim if they have fully comprehensive cover, but may not qualify for a payout if they have anything less.

Graeme Trudgill of the British Insurance Brokers’ Association said for those with third party, fire and theft cover, the situation would depend on what had happened to their vehicle.

“If someone whacks it with a pole then it is not covered; if they set fire to it, it is,” he said.

One area where things are less cut and dried is travel insurance. A spokeswoman for the ABI said police officers who have to cancel a holiday because they have had their leave rescinded will be covered, but other people may not.

“If someone’s business has been affected, and there is a reason they cannot travel, then they would need to contact their insurer and it would be considered on a case-by-case basis – but even that would not be covered by a standard policy in my view,” she said.

Politicians who have had to cut short their holidays to return to London may also find they are not covered.

Uninsured home and business owners

Under the 1886 Riot (Damages) Act the police are obliged to compensate people who have had their property and/or buildings damaged or stolen during disturbances like those seen this week.

Home and business owners who do not have insurance or are underinsured should make a claim to their local police force.

To make things difficult, claims need to be made in writing and within 14 days of the event taking place. The ABI is calling for this to be extended to 42 days to give people chance to asses how much they have lost.

Anyone affected by the riots could also apply for a crisis loan to help them meet daily expenses while claims are settled. These are loans from the government designed to help people in emergencies.