This month has been quite the hotbed for, well, rioting. London, and other cities in the United Kingdom, received a lot of publicity for their destructive actions. As everyone saw on the news, stores were damaged, cars were burned and there was what could kindly be called chaos in many cities.
Comparatively, things here in the United States have been pretty calm lately. The last riots in Seattle were the Mardi Gras riots in 2001, and the rather well-known WTO situation in 1999. But with the United Kingdom situation in mind, The Insurance Information Institute put together some numbers on what they term "civil disorders" here in the US. They looked at the most expensive riots for insurers...and discovered that 7 of the costliest civil disorders took place in the 1960s (for a look at the graphic, click this link: www.iii.org/facts_statistics/civil-disorders.html
Since those 7 events cost insurance companies quite a bit of money (if you look at the graphic, remember those numbers are in the millions) they were reluctant to insure homes in high-risk areas. To the people living and working in those areas, it seemed unfair that they were unable to get insurance because of risk factors that they couldn't often control. As a result, the first Fair Access to Insurance (FAIR) Plans were developed for the purpose of providing insurance protection for those at-risk properties.
A lot of times, we don't know how insurance came to be (rumor has it, it just sort of appeared) so when I come across an explanation for a certain type of coverage I like to share that. It's interesting to know that national events impacted the world of insurance, isn't it?