Many insurance policies contain exclusions for damages associated with “civil unrest,” “riot or civil commotion,” “vandalism or malicious mischief,” or other terms meant to exclude the type of damages many Minneapolis property owners experienced as a result of rioting shortly after the death of George Floyd. With, the trial of former Minneapolis Police Office Derek Chauvin’s underway, many local business owners are concerned about further civil unrest. While it is everyone’s hope that justice prevails and any demonstrations remain peaceful, many property owners are concerned with what their policy covers in the event of further riots.
When considering potential damage to property which could result from non-peaceful riots or fires, property owners should review their insurance policies to see if they are covered from potential damage. The basic standard for an insurance policy is that it provides coverage for “direct physical loss” or “direct physical damage” to insured property, which without being otherwise excluded, would likely provide coverage for damage associated with rioting. However, policies also contain a list of exclusions that limit coverage for things like normal wear and tear, earth movement, and pollution. Policyholders should review the list of exclusions to see if their policy excludes coverage for damage caused by riots, vandalism, terrorism, or other similar terms. Policies also contain endorsements attached to the end of the policy which can affect coverage and should be examined for this exclusionary language. Policies containing these types of exclusions may not provide coverage for damage sustained in a riot. If your policy does not have the insurance coverage you want, you should contact your insurance agent or provider to discuss your policy and potential changes. It is too late to wait until after the loss occurs to make sure you have the proper insurance coverage.
We love our city and want to support our community in any way we can. If you have any questions or would like assistance reviewing your policy or if you experience damage and want a free initial analysis of your potential insurance coverage, contact us today.