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I predict a riot

19 July 2016

On 23 March 2016 the Riot Compensation Act 2016 received royal assent. It is yet to come into effect but when it does it will repeal the old 1886 Act and create a new scheme allowing compensation to be claimed from the appropriate local policing authority for property that is damaged, destroyed or stolen in the course of a riot. It applies to property that was not insured, or was under-insured, against loss or damage.

There is a £1 million cap on compensation in anyone claim and consequential loss is not recoverable, such as rent which would have been received had the property not been damaged. Costs incurred for things like alternative accommodation are claimable. The riots in London and other cities in 2011 were the catalyst for this new act as previous legislation was found wanting. If law and order breaks down due to a riot and the police cannot control this and damage is caused, then the police become liable to pay out those affected.

In view of the limits of compensation, property owners may wish to review their insurance policies for damage caused by riot.

Alasdair works in our commercial property team. He began his career in the City and joined us from a leading regional firm. He is a member of the Ethical Property Foundation. An experienced commercial property specialist, Alasdair deals with a wide range of work in relation to sales & acquisitions, development transactions, landlord and tenant and property management matters. 

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Alasdair Garbutt LLB (Hons)
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