These are troubling times in America, with many social issues boiling over to the point of widespread protests and even rioting.
A big question you may be asking as a Texas resident right now is whether your property is covered by insurance if it is damaged or destroyed during civil unrest.
Will a business owners policy or BOP help you as a shop owner repair any damage that is done to stay in business and will a homeowners or an auto policy cover the damage to your personal property as well?
In most cases, the answer is yes - but let's examine some of the requirements and stipulations that might apply to some policies.
Auto Insurance and Civil Unrest
Of all the different types of insurance available, auto insurance is probably the easiest to understand and rely on in times of civil disorder.
Damage caused by rioting is categorized under comprehensive auto coverage.
If a policy includes comprehensive coverage, any damage sustained due to civil unrest should be covered up to the limits of the policy minus whatever deductible applies.
Homeowners Insurance and Civil Unrest
A standard homeowners insurance and most renter’s insurance policies will normally cover damage sustained during civil disorder.
Events like vandalism, malicious intent, rioting, explosion, and fire are included in most homeowner and rental policies to cover your personal possessions under under both policies and the structure itself under a homeowners policy, although there are some stipulations that may apply.
If civil disorder escalates to the point where it is declared to be an armed uprising against the government otherwise known as an insurrection, many policies include that action in its exclusion and may not cover your resulting property damage.
As with all other policies, limits and deductions do still apply as does coverage for high-value items like jewelry and antiques unless your policy includes supplemental coverage for valuables.
Business Owners Insurance and Civil Unrest
During periods of civil unrest, businesses can be the hardest hit of all properties, making it critical to have adequate business owners property or BOP insurance to cover any resulting property damage.
While riot damage to your business structure is covered under the standard form policy, certain other damage may fall under broad form or special form policies.
As an example, plate glass damage is often covered under a special form that must be purchased separately as is business interruption coverage and a number of other perils.
Losses due to looting may be covered under the standard policy ;or a separate crime insurance policy.
As with the homeowner's policy, there may also be specific exclusions that are not covered unless by a supplemental policy.
Protect Businesses, Homes, and Autos
When protesting turns to rioting, the possibility of homes, businesses, and vehicles being damaged increases exponentially.
Though you don't ever expect this type of damage to your property, it’s important to know you carry the right coverage for those ‘just in case’ moments.
Texas insurers recommend that all home and business owners review their insurance policies to be certain you have appropriate coverage for the costly damage that can happen during civil unrest.