Riot Insurance

Some of the damage done to a
store during the LA riots
       After watching all the documentaries in class detailing the Los Angeles Riots and how innocent shopowners had their stores and hard work completely destroyed I was curious as to whether or not they were able to get any reimbursement. While it was hard to find any information on specifically what happened to the storeowners during the riots I was able to find information on what it is like for storeowners who today are found in the midst of a riot. Obviously, it heavily depends on what kind of insurance plan they have. Typically physical damage like windows, doors, and light fixtures are included in building coverage of insurance plans. Other stuff like the glassware, furniture, or food that were damaged or stolen should qualify for coverage under Business Personal Property coverage. So in that sense, while it will still take time the actual store should be reimbursed.
        A part that I didn't think of was the income that the storeowners did not make during the riots and in the time it takes for the store to be rebuilt. This can be covered if a store owner has business income insurance but not all business owners do. Specifically, there is something known as riot insurance which is actually a requirement in major cities, especially those hosting controversial gatherings like presidential conventions and international monetary conferences that attract demonstrators. After Charlottesville attention towards riot insurance rose significantly, essentially it covers all the things that were previously mentioned but in a more secure way. The issue with the other insurance option was that it was hard to always be sure that damages would be covered because depending on the situation sometimes insurance providers wouldn't consider an event to be covered. This type of insurance is actually relatively cheap, and prices seem to be coming down. But the drawback is that prior confrontations appear to be random and could happen anywhere, so really knowing if you should get it or not is difficult.

Sources:
https://www.cbsnews.com/news/riot-insurance-american-cities-new-must-have/
https://www.thebalancesmb.com/property-coverage-for-riots-462690

Comments

  1. AnonymousOctober 14, 2018 at 6:50 PM

    This is interesting and I hadn't thought of it before either. Another interesting type of insurance that I read about is that of "civil authority" coverage. Basically, it's if the government, in whatever shape or form, be it the fire department, the military, or whatever else, substantially interferes with local traffic and business.. Coverage includes curfews, for example, and police occupation of the area. And this has to be bought separately from the other insurance you mentioned earlier.

    I wonder if this insurance would have been helpful at other times in L.A. history, where police presence likely reduced customer numbers. But black storeowners may not have had the ability to buy such insurance, or they might not have been granted the money they deserved even if they had. Who predicts that their restaurant is going to lose business because of the National Guard storming in?

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