Police commissioners could see households and businesses claiming for compensation of up to £1 million in the aftermath of riots erupting across the UK.
Under the law in England and Wales, victims of criminal damage to their property and possessions during a riot are entitled to claim for losses.
Questions about legal protection have been raised after several days of violent disorder in towns and cities including Liverpool, Rotherham, Middlesbrough and Hull.
Properties and shops including Shoe Zone, Sainsbury’s, Lush and Greggs are among those believed to have been targeted by people damaging, looting and setting fire to buildings.
In Rotherham, anti-immigration rioters smashed the windows of the Holiday Inn Express before starting fires.
Under the Riot Compensation Act, victims of damage, destruction and theft can claim for riot compensation if their home, business property, or possessions were not adequately insured.
A riot is defined by law as “where 12 or more persons who are present together use or threaten unlawful violence for a common purpose” and where such conduct would cause a person “of reasonable firmness” to “fear for his personal safety”.
For most of England and Wales, the Police and Crime Commissioners – elected officials who oversee local policing – in the area where riots took place will foot the bill for eligible claims, according to government guidance.
In London, the claims authorities are the mayor’s office or police authorities.
Costs can be covered in the form of compensation payments, or repairs paid for by the claims authority, including for some insured cars.
Government guidance says potential victims should immediately contact police in the aftermath of a riot, and do not need to work out straight away what their losses might be.
Insurance companies can also make a claim to be reimbursed after paying out in full or in part for people affected by riot damage.
Meanwhile, the definition of rioting could be important when it comes to future payouts.
Prime Minister Sir Keir Starmer warned that people will “regret taking part in this disorder” and said he “won’t shy away from what it is: far-right thuggery”.
In a speech in Downing Street, he likened the events to rioting in 2011 when he was working as the Director of Public Prosecutions.
He stressed it is “violence” and “not protests” that is sweeping the streets.
However, guidance on the Government website notes that “not all instances of damage or loss that occur during a period of civil disturbance will meet the criteria for compensation” under the riot regulations.
People and businesses with insurance policies on their property or possessions are advised to contact their insurance provider if they have suffered damages as a result of the unrest.
A spokeswoman for the Association of British Insurers said: “Individuals, homeowners and businesses affected by the recent unrest will understandably be incredibly worried and distressed.
“Physical damage to homes or businesses is covered as standard by most household and business insurance policies. Most comprehensive motor insurance also includes cover for damage to your car.
“Insurers appreciate that this is an incredibly stressful time and will be on hand to do everything they can to help customers as quickly as possible.
“If you have been affected, contact your insurer so that they can advise on next steps. You may also need to report any damage to the police to get a crime reference number for your claim.”
Most commercial insurance policies cover businesses for damage to the property, including if it interrupts sales or trading in the aftermath.