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Discussion Starter #1
With that question, I think this is the correct thread since the other option (to leaving your home or business undefended to get looted and burned) is to put up a stand. Break out your firearms, like the Korean shopkeepers in the LA "Rodney King" riots, to protect your possessions and livelihood.

I seem to remember that civil unrest, riots, etc. are specifically not covered in typical homeowners and business insurance policies. Perhaps someone knowledgeable in the industry could offer some insight.

Obviously, if not covered, that would mean the victim of the looting and burning has to cover all of the losses. Won't do any good suing BLM, etc. as they don't have any assets. And suing the mayors, governor, police, etc. is a serious long shot with their immunity in place. That would make it more logical to defend your own property when the government takes your property taxes but fails to honor its promise. Sure, the police don't have an "obligation to protect and serve" but what about when the mayor orders the police to stand down?
 

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If insurance didn't cover "civil disturbance" or riot, I'd be like, "burglars, clearly burglars". :whistle:
 

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Generally not covered by most carriers.
 
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Even worse, in places where rioting is deemed to be peaceful protests; a building burned to the ground could be deemed to be undamaged. Kinda like Slick Willie's assertion about what the definition of "is" is!
 

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It depends on what is worded in the policy and the riders. Some states require that certain things be covered in certain types of policies, but you can't make a general rule. Plus, the truth is it may not make any difference. It is important to remember how the insurance industry works.

Insurance basically pools policyholders' resources to cover losses by some small number of policy holders. The premiums and the payouts are based on risk. There is also reinsurance, which is insurance against losses for insurance companies. I am talking about damage insurance, not health insurance, BTW. That has a somewhat different dynamic.

Here's the problem. If there are too many losses, the insurance companies have either refuse claims or go into bankruptcy. This is happening now with the pandemic and business interruption insurance. Insurance companies are refusing to pay business interruption insurance claims because there are too many of them. They are instead coming up with fine print reasons the claims are disallowed under the policies and obviously prefer to litigate that position for years because they have no other choice.

If there are a lot of losses due to rioting, at some point, the insurance companies will stop paying. After Katrina, people who had hurricane insurance were denied claims because the companies said the damage was due to flooding and not the hurricane. But the flooding only happened because the hurricane destroyed the levys. The insurance companies who covered those people in those areas maintained their profit margins and were mostly not taken to task.

If there are too many claims, insurance companies will find a way not to pay them.
 

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Discussion Starter #6
If there are too many claims, insurance companies will find a way not to pay them.
Which begs the question of whether it's better to leave your property unprotected and hope it isn't a smouldering pile of ash upon your return, or to stay and fight to keep the jackals away.

This suggests that since one's neighbors are likely in the same position (questionable insurance coverage), banding together for a more complete defensive front is worth it.
 

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Which begs the question of whether it's better to leave your property unprotected and hope it isn't a smouldering pile of ash upon your return, or to stay and fight to keep the jackals away.

This suggests that since one's neighbors are likely in the same position (questionable insurance coverage), banding together for a more complete defensive front is worth it.
I think it would be good to prepare for both angles. First, make sure your policy covers damage due to civil unrest and that your policy is with a really solid company that has top financial ratings. But banding together with your neighbors would be good too.
 

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Read your policy. Do you have a homeowners or named peril policy. Riot and civil unrest is covered under homeowners, maybe-maybe not under named peril. Business policies are Mostly named peril. All policies have an exclusion page, that’s a start but there are issues that come up in reading the entire policy. Like wind driven rain, power outage, etc.
Rising water from the outside isn’t covered under Hurricane. HO and DW policies cover falling water only for hurricane. Lots of changes in the state wind pool policy.
 
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