Landlords could see insurance premiums double on account of the summer riots, broker Lockton has warned.
The insurance broker said one of its clients its still waiting for three claims totalling almost £3m, but is having trouble claiming them under the Riot (Damages) Act, because some police forces are branding the August events as disturbances, rather than riots.
Steve Bracey, managing director of Lockton’s real estate team, said: “This slow and indefinite response is making insurers very nervous about what they are going to receive. This means that they are likely to have to ask property owners and tenants for higher premiums.”
Bracey added that policies due for renewal on 1 January and 1 April 2012 could be difficult, and some premiums could be doubled.
The Met received 4,500 claims worth around £250m following the riots. Some 2,250 of these claims are from insurers seeking compensation under the Riot (Damages) Act, with the rest from individuals that were either underinsured or uninsured.
joanna.bourke@estatesgazette.com
