Over the past year, we have seen riots, looting, and vandalism. In addition to being worried about their safety, many people are also concerned about the potential damage to their home and business. Therefore it is important that we take the time to answer the following question: does insurance cover rioting?
The short answer is yes, to an extent.
Does Business Insurance Cover Rioting and Looting?
A standard Business Owners Policy (or BOP for short) generally covers the physical damage caused by a riot and vandalism. This would include damage to the physical portions of the building like the doors or the walls. It would also include the contents of the business like desks and chairs.
Riots and looting have forced many businesses to shut down. A BOP insurance policy does not usually cover lost income due to a business shut down. Therefore, it is important to buy business interruption insurance.
Business interruption insurance covers business expenses and replaces lost income when a business is forced to shut down. Some policies only cover certain situations and are triggered by specific events such as physical property damage. Other polices may provide broader coverage and may even make payments to the business until it retains a similar level of revenue prior to the incident. It is important to talk to your insurance agent to find out what your policy covers.
Rioting and Home Insurance
A standard homeowners insurance policy does protect against damage caused by rioting and vandalism. The policy will most likely cover the structure of your home and the damage to your personal possessions to the extent of your coverage limits.
At times, people are unable to live at their home because the physical damage caused by a riot makes a home unlivable. In these circumstances, a homeowner insurance policy may include coverage for additional living expense (or ALE for short). ALE covers costs of hotels and other expenses associated with living away from your home.
Be Prepared
Reports on riots and looting have filled our television, social media, and newspapers. It is normal to be concerned about such civil unrest. But it’s even more important to be prepared. Let us help you find the proper insurance coverage for your home and business that will cover various acts of violence to your property. You can reach us at 248-362-1313 or fill in the form below. We look forward to serving you.
