Insurance Coverage During Civil Unrest: Expert Guidance from Shield Public Adjusters
By Nikolay Zubyan, Senior Property Public Adjuster and Founder of Shield Public Adjusters
In my two decades of experience handling property insurance claims, I’ve witnessed firsthand how civil unrest, protests, and riots can devastate communities and leave property owners scrambling to understand their insurance coverage. As the founder of Shield Public Adjusters, I’ve guided countless clients through the complex process of recovering from riot-related property damage, and I want to share crucial insights that every property owner should know.
The Reality of Insurance Coverage During Civil Unrest
Let me be direct: most property owners are underinsured when it comes to civil unrest damage, not because their policies don’t cover it, but because they don’t understand the intricacies of their coverage. In my experience, standard homeowners and commercial property insurance policies generally do provide coverage for damage caused by riots and civil unrest under the “vandalism and malicious mischief” provision. However, the devil is in the details, and that’s where most claims go wrong.
I’ve seen too many property owners accept initial insurance company settlements that were 30-50% below what they were actually entitled to receive. This happens because they don’t understand their policy language or fail to properly document and present their claims.
What I’ve Learned About Covered Damage Types
Through hundreds of civil unrest claims, I’ve identified the damage types that insurance companies typically cover without dispute:
Structural Damage: This includes broken windows, damaged doors, roof damage from projectiles, and structural repairs needed due to vandalism or impact damage. I always advise clients to have a qualified contractor assess all structural damage, as hidden damage often exceeds what’s immediately visible.
Fire and Smoke Damage: Fires set during civil unrest are covered, but here’s what most people don’t know: smoke damage can be far more extensive and expensive than the visible fire damage. I’ve handled claims where smoke infiltration required complete HVAC system replacement and extensive remediation throughout multi-story buildings.
Inventory and Business Property: For my commercial clients, I ensure they understand that inventory coverage includes not just stolen merchandise, but also inventory damaged by smoke, water from firefighting efforts, or contamination from broken windows and exposure to elements.
Business Interruption – The Most Overlooked Coverage: This is where I see the biggest gaps in understanding. Business interruption coverage doesn’t just cover lost revenue; it can cover ongoing expenses, employee wages, temporary relocation costs, and even marketing expenses to rebuild customer base after reopening.
Critical Exclusions Property Owners Miss
In my practice, I’ve encountered several exclusions that catch property owners off guard:
The Government Action Exclusion: Some policies exclude damage caused by government action to restore order. I’ve successfully argued cases where this exclusion was improperly applied, but it requires careful analysis of the specific circumstances and policy language.
Ordinance and Law Coverage Gaps: When buildings are damaged during civil unrest, repairs often trigger building code upgrades that can add 20-40% to reconstruction costs. Most standard policies don’t automatically cover these additional expenses.
Failure to Protect Property: Insurance companies sometimes deny claims arguing that property owners failed to take reasonable protective measures. I’ve fought many of these denials, as “reasonable” measures during active civil unrest are often impossible or dangerous to implement.
My Approach to the Claims Process
Having represented clients through major civil unrest events, I’ve developed a systematic approach that maximizes recoveries:
Immediate Documentation Strategy: I tell my clients to document everything, but more importantly, I guide them on how to document properly. Use time-stamped photos, create detailed written inventories, and preserve evidence of business interruption losses through financial records and operational data.
Emergency Mitigation with Strategic Thinking: Yes, you must mitigate further damage, but how you do it matters for your claim. I advise clients to work with contractors who understand insurance requirements and can provide detailed documentation that supports the claim rather than undermines it.
Managing the Insurance Company Relationship: Insurance companies often rush to settle civil unrest claims quickly, especially during widespread events. While quick resolution seems
attractive, I’ve found that thorough preparation and strategic negotiation typically result in settlements 40-60% higher than initial offers.
Special Insights for Business Owners
My commercial clients face unique challenges that require specialized knowledge:
Supply Chain Business Interruption: Most business owners don’t realize their policies may cover losses when their suppliers or key customers are affected by civil unrest. This coverage exists in many policies but requires specific documentation and presentation.
Tenant Displacement Issues: For property owners with rental income, civil unrest can trigger complex coverage issues involving rental income loss, tenant relocation expenses, and lease obligation complications.
Debris Removal and Demolition: The costs for cleaning up after civil unrest often exceed what property owners expect. Standard policies typically provide limited debris removal coverage, but additional coverage can often be accessed through proper claim presentation.
Market Changes I’ve Observed
The insurance landscape for civil unrest coverage has evolved significantly. I’ve noticed insurers becoming more sophisticated in their claim handling, which means property owners need more sophisticated representation. Some insurers now use aerial imagery and advanced analytics to assess damage, which can work for or against claimants depending on how claims are presented.
I’ve also seen an increase in coverage restrictions and higher deductibles in areas with historical civil unrest activity. Property owners in these areas need to be particularly strategic about their coverage selection and claims handling.
My Professional Recommendations
Based on my extensive experience in this field, here’s what I advise every property owner:
Understand Your Policy Before You Need It: Don’t wait for a loss to understand your coverage. I offer policy reviews because I’ve seen too many clients discover critical gaps only after filing a claim.
Maintain Detailed Property Records: Keep updated photographs, improvement records, and financial documentation. During widespread civil unrest, insurance companies are overwhelmed, and well-documented claims receive faster, better settlements.
Consider Professional Representation Early: Many property owners try to handle civil unrest claims themselves, thinking they’re straightforward. In my experience, these claims involve complex coverage issues that benefit significantly from professional representation.
Plan for Extended Recovery Periods: Civil unrest claims often take longer to resolve than other property claims due to the widespread nature of damage and potential complications with contractors and materials availability.
Why Professional Assistance Matters
Throughout my career, I’ve seen the dramatic difference professional representation makes in civil unrest claims. Insurance companies have teams of experienced adjusters and lawyers working on their behalf. Property owners deserve equally experienced representation working for their interests.
At Shield Public Adjusters, we’ve developed specialized expertise in civil unrest claims because we understand the unique challenges these events create. From properly documenting smoke damage in multi-story buildings to maximizing business interruption recoveries for complex commercial operations, our experience translates directly into better outcomes for our clients.
Final Thoughts
Civil unrest damage claims are not just about getting your property repaired; they’re about ensuring your financial recovery and future stability. The decisions made in the first few weeks after a loss can impact your recovery for years to come. Property owners who understand their coverage, document their losses properly, and seek appropriate professional guidance consistently achieve better outcomes than those who try to navigate these complex claims alone.
If you’re facing civil unrest damage, remember that your insurance policy is a contract designed to restore you to your pre-loss condition. Don’t settle for less than what you’re entitled to receive. The expertise gained from handling hundreds of these claims has taught me that proper claim handling makes the difference between partial recovery and full financial restoration.
Nikolay Zubyan is a Senior Property Public Adjuster and founder of Shield Public Adjusters, specializing in complex property insurance claims including civil unrest, fire, water damage, and commercial losses. With over 20 years of experience in insurance, construction, and claims advocacy, he has helped property owners recover millions of dollars in insurance settlements.