Most claims made during riots have been settled

9th February, 2012

The Association of British Insurers (ABI) have issued information regarding the progress made by insurers who have settled claims made as a result of the riots six months ago.

It has estimated that so far approximately eight in ten claims for damage under household policies have been settled so far. The number of claims lodged through businesses for damage caused to their properties that have been settled is approximately seven out of ten. This number includes any claimants that may have received interim payments. The majority of smaller claims made by homeowners and businesses have already been settled.

The insurers have also said that the majority of insurance claims resulting from the riots are larger claims from bigger business. Claims for loss of trading will take longer whilst insurers take time to make like for like comparisons with similar trading periods.

The insurers noted that many of the sites were also designated crime scenes making access to the premises very difficult for assessors. Another lengthy process involves the assessment of listed or historic buildings. Many buildings were badly damaged by fire and any decisions regarding rebuilding would need to be assessed by local authorities.

The ABI’s director of general insurance, Nick Starling, comments: “Unsurprisingly, the bulk of outstanding riot claims are for large commercial customers.” He also said “Insurers worked to get as many of these businesses back to trading as quickly as possible and continue to focus efforts on settling these more complex claims, which can take some time.”

 

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