Posted on 09/16/2020 7:15:10 AM PDT by karpov
Insurance companies could pay up to $2 billion in claims stemming from riots sparked by the police killing of George Floyd — making them the most expensive in US history, a new report says.
The record-setting insured losses piled up as the demonstrations sometimes devolved into looting, arson and vandalism in 20 states across the country from May 26 to June 8, Axios reported Wednesday, citing figures from the Insurance Information Institute.
“It’s not just happening in one city or state — it’s all over the country,” Loretta L. Worters, a spokeswoman for the industry group, told Axios. “And this is still happening, so the losses could be significantly more.”
The cost of the damage will likely surpass that of the 1992 Los Angeles riots following the acquittal of the cops that beat Rodney King. That violence led to $775 million in insured losses at the time, or more than $1.4 billion in today’s dollars, according to the institute known as Triple-I.
The violence sparked by Minneapolis cops’ killing of Floyd was the first “multi-state catastrophe event” ever declared for civil disorder by claim-tracking company Property Claim Services, Triple-I has said.
Past civil catastrophes — events that caused at least $25 million in insured losses — unfolded in individual cities, such as the 1967 Detroit riots or the 1977 New York City blackout, according to the group, which noted that standard business-owner and homeowner insurance policies cover riot-related damages.
(Excerpt) Read more at nypost.com ...
The price of political riots organized from on high.
They will just raise our rates /s
I thought most insurance didn’t pay out I case of civil unrest.
+1!
Democrat-sponsored riots are costing insurance companies over two billion dollars! Anything the Democrats are involved with ends up costing the people associated with it a ton of money!
Of course the expense will be passed along to policy holders... ALL policy holders
>>They will just raise our rates /s<<
No need for “/s” — that is EXACTLY what will happen. The one thing about Insurance is you should never actually use it.
Wonder what companies had the biggest liability?
I wonder if somebody’s trying to force their hand to pay out anyway....
Thus the cost of coverage for riot damage will go through the roof and will prevent even more businesses from operating in the inner cities. This is how you make a Detroit.
>>I thought most insurance didn’t pay out I case of civil unrest.<<
I thought so too but found that riot damage is in fact covered - but it has a lot of limitations and legalese around the edges. You know insurance companies are going to be forced to pay even a dime so this will be a long uphill battle for the insured.
Mine does and it is part of the standard policy package.
No sarcasm there. It’s the truth.
Truth is that it won’t cost them anything.
The Adjuster Tables will alter for anyplace that is “WOKE” and defunds the police. The rates in Law abiding and solid districts with good police and good law and order policy will stay low. But in Minneapolis, Portland etc, they will skyrocket as a cost of doing business. Rates are based on risk. Risk is high in liberal land, risk is low in conservative land. Prices will reflect that, tack on taxes and you will have Detroit soon enough. Liberals ruin everything.
Why the sarcasm tag? That is exactly what will happen.
Similar to insurance companies refusing to provide flood insurance to homes in a flood plain, they will start to refuse civil unrest insurance to businesses in low-income neighborhoods.
Similar to insurance companies refusing to provide flood insurance to homes in a flood plain, they will start to refuse civil unrest insurance to businesses in low-income neighborhoods.
This. What insurance companies will do in areas that are prone to riots will be to require a rider (and another premium) to be carried by the insured against “civil unrest”. Some carriers already did this and some of the businesses that were destroyed this time are NOT covered.
This will further drive business out of these communities as nobody in their right mind is going to carry an expensive rider on a major investment such as a manufacturing facility when they can locate 10 miles away and not pay it.
This statistic has crippled Detroit for the last few decades just as it has crippled Watts and other communities in California. Detroit understands it and that is why they have been so firm against rioting this time even with a deep blue government.
It is why few have built a business in Ferguson since Michael Brown. Why bother? You can locate in a place that is far less prone to riots and spend less on insurance.
Correction. “ may cost individuals up to $2B.” You know, the people who actually go out to work, who pay taxes, who didn’t riot, who didn’t burn buildings down, who didn’t assault and kill people.
If there’s a dem in the White House, all the taxpayers will be forced to pay the costs, since the fool dem will be sending federal money to the democrat cities that promoted the riots.
Prohibitive insurance premiums will be an insurmountable obstacle to living and doing business in those areas.
The result will be ‘dead cities’ and all the social and economic repercussions that go with it. Thanks O'bozo!
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