England riots will rocket the insurance cost.
England riots, the fourth night. Nottingham police station firebombed, Manchester and Salford disturbances.
[googlead tip=”patrat_mic” aliniat=”dreapta”]Three nights of rioting in London and other British cities will raise the final England insurance bill to hundreds of millions of pounds.
Last days, Nick Starling, director of General Insurance and Health for the Association of British Insurers (ABI), made the prediction after further rioting in Birmingham, Bristol, Croydon, Lewisham and other locations of tens of millions, but the full extent of the looting, arson and criminal damage became apparent.
Charred remains of Reeves furniture shop Croydon, South London, following riots on Monday
The association added that it was still too early to have an accurate picture of the total costs:
“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.”
News footage from last days events has shown a number of business premises looted and vandalized, including an apparent arson attack on a furniture store in Croydon, South London, that had been trading in the same location for over 100 years.
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[googlead tip=”vertical_mic”]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 help-lines 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 said:
“We have everysympathy for residents and business owners who have suffered damage to their properties.”
“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.”
And he added that the priority for insurers at the moment is to help people through this incredibly traumatic time.
Regarding businesses affected by rioting, ABI informed people that:
“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.”
It is important to know that some policies will cover those businesses which are not damaged but whose trade has been affected by the rioting aftermath.
PM David Cameron announced that a Riot Act police compensation scheme will operate as normal.
PM David Cameron announced that a Riot Act police compensation scheme will operate as normal, which has been welcomed by the UK insurance industry and ABI pledged to use its expertise to help the government and police authorities implement the scheme.
Otto Thoresen, ABI’s General Director said:
“The insurance industry is already paying out claims to people with insurance, but wants to do more to support the Government in helping people get back on their feet.”
The association also welcomed the PM’s agreement to its request to extend to the maximum of 42 days the amount of time claims can be made under the scheme.
The announcement came as the ABI revised its estimated figure of claims likely to be paid out by the insurance industry to be in excess of £200 million.
In addition, the ABI General Director said:
“We will work in partnership with the Government, and share our expertise, to make sure that the police compensation schemes work effectively and get compensation to people who need it quickly. It is important that, after the sad events of recent days, we do everything we can to help people recover.”
[googlead tip=”lista_mica” aliniat=”stanga”]The ABI is the voice of the UK’s insurance, investment and long-term savings industry. It has over 300 members, which together account for around 90% of premiums in the UK domestic market.
The UK insurance industry is the third largest in the world and the largest in Europe.