Over the weekend, anti-ICE protests erupted across Los Angeles, resulting in significant damage to businesses, vehicles, and buildings. Protesters, outraged by recent immigration raids conducted by ICE, clashed with authorities in several parts of the city. Although the situation escalated, most of the damages caused are likely covered by insurance, according to experts.
What Happened During the Protests?
Tensions grew after reports of aggressive immigration enforcement actions. By Sunday night and into early Monday morning, the protests had turned destructive. Several Waymo self-driving cars were set on fire, and many businesses were vandalized and burglarized. Protesters also sprayed graffiti on commercial buildings and hurled objects like rocks and electric scooters at police vehicles.
While the full cost of the damages from the Los Angeles protest is still being assessed, early indications suggest that insurance policies will absorb most of the financial impact.
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A Look at the Cost of Civil Unrest in the U.S.
Civil unrest can result in massive insured losses. In 2020, for example, the protests following the killing of George Floyd led to approximately $2 billion in insured damages. This made it the costliest period of civil unrest in U.S. history.
Even earlier, the 1992 LA riots caused about $775 million in insured losses, which would be equivalent to roughly $1.4 billion today after adjusting for inflation. Clearly, these events leave a long-lasting impact not just on communities but also on insurers.
Will Insurance Cover the Los Angeles Protest Damages?
According to the Insurance Information Institute, the answer is mostly yes. Many standard insurance policies include coverage for damage caused by riots, civil commotion, and vandalism. This applies across different types of policies, from homeowners and auto to business and commercial property insurance.
Let’s break down how each of these policies may respond to the damages from the LA protests.
1. Homeowners Insurance
Standard homeowners insurance policies typically provide coverage for damage caused by fire, explosions, riots, vandalism, and malicious mischief. This means that if a protest-related fire damages a home, the structure and personal belongings inside are usually covered.
Even better, if a homeowner cannot live in the property due to the damage, the policy often includes additional living expenses (ALE). This coverage pays for hotel stays, temporary housing, and meals while repairs are underway.
So, while the events were unsettling, many affected homeowners can take some comfort in knowing they are likely protected.
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2. Auto Insurance
For vehicle owners, the key coverage is comprehensive auto insurance. This optional policy covers damage from vandalism, fire, falling objects, and riots.
For instance, if a car was set ablaze or had its windows smashed during the protests, comprehensive insurance would typically handle the repairs or replacement. Some policies may even cover a cracked windshield without requiring a deductible.
About 75% of U.S. drivers have comprehensive insurance coverage, which bodes well for those affected by the Los Angeles protest.
