Property insurance: riot damage

The Riot (Damages) Act 1886 permits a person suffering property damage in the course of a riot to claim compensation from the local police authority. The legislation was considered in Yarl's Wood Immigration Ltd v Bedfordshire Police Authority [2009] EWCA Civ 1110, where the Court of Appeal held that it extended to public property being administered by a private organisation (a detention centre).

At the same time, the Court of Appeal ruled in Bedfordshire Police Authority v Constable [2009] Lloyd’s Rep IR 607 that a public liability policy held by the police covered that liability. As a result of that decision, insurers have become reluctant to insure police authorities against riot damage liabilities, but the 1886 Act remains of interest to property insurers, in that – having indemnified property owners against riot damage – the insurers have a direct (rather than a merely subrogated) claim against police authorities in respect of property damaged in riots (section 2(2) of the 1886 Act). Reform of the legislation is under consideration. In the meantime, the Supreme Court in Mayor’s Office for Policing and Crime v Mitsui Sumitomo Insurance Co (Europe) Ltd and Others [2016] UKSC 18, reversing the Court of Appeal, has significantly reduced the potential scope of the 1886 Act.