The ABI has urged people affected by the riots in London and other parts of the country to contact their insurer as soon as possible.
Many insurers run 24 hour helplines and will be on hand to support people affected.
The ABI has also written to business groups to let business owners know that many commercial insurance policies will cover them for loss of trade as well as damage. People should contact their insurer for information and advice.
Nick Starling, Director of General Insurance and Health, ABI 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. We urge people to contact their insurer as soon as possible to check what they are covered for and arrange for immediate help. Many insurers operate a 24-hour claims line and can help people arrange for urgent repairs.
"Home insurance should cover people for fire, looting or damage caused. Many policies will also cover people for accommodation costs if they can't stay in their home. Most commercial insurance policies will cover businesses for damage to their premises, including the interruption to their business as a result. Some policies will also cover those businesses which are not damaged, but whose trade is affected by the aftermath. Insurers are working as quickly as they can to deal with claims. However, access to dangerous buildings which are also crime scenes is a serious issue. It is too early for us to have an accurate picture of total costs, especially business interruption costs, but insurers are expecting significant losses, of at least £10s of millions."
LETTER FROM THE ABI TO BUSINESS GROUPS
INFORMATION FOR BUSINESSES AFFECTED BY RIOTING
We have every sympathy for those business owners who have suffered damage to their properties as a result of the rioting we have seen across the UK but particularly in London in recent days. We understand that this is a time of enormous stress for business owners but they should know that their insurers will be on hand to answer any questions that they may have. Most commercial insurance policies will cover businesses for damage to their premises, including the interruption to their business as a result of fire, looting and the other damage caused by the recent riots. Some policies will also cover those businesses which are not damaged but whose trade has been affected by the aftermath. It is important for people to read their insurance policy's terms and conditions carefully to check what they are covered for. If necessary, contact your insurance company for any additional clarification that is needed and for any immediate assistance. Insurers are working as quickly as they can to deal with claims and most have 24 hour call centres that will be able to help. Many insurance policies require claims to be notified within a specified time period, often 7 days, of the event giving rise to the damage to property in order for that claim to be covered. If you think you might have a claim, please review your insurance policy and contact your insurer or insurance broker as soon as possible. It is important to recognise that many buildings that have been severely damaged will be dangerous or may be crime scenes which may pose access issues for business owners and insurers alike. It is too early to tell what the total cost of the recent rioting might be, but insurers are expecting to face significant losses of at least £10s of millions. But the priority for insurers at the moment is to help people through this incredibly traumatic time.
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