Home insurers reject almost half of all claims - best and worst providers named
Nearly one in four home insurance claims (24%) are thrown out on average according to data from the Financial Conduct Authority.
The latest claims data indicates that just 76% of home buildings and contents claims are accepted, with an average payout of £3,733. Contents only plans have a similar acceptance rate, but a lower average payout of £1,574:
| Product Category | Claims Frequency | Claims acceptance rate | Average claims payout | Claim complaints as a % of claims | % of premiums paid out in claims |
|---|---|---|---|---|---|
| Home - contents only | 3% | 76% | £1,574 | 6% | 35% |
| Home - buildings only | 3% | 68% | £4,856 | 11% | 57% |
| Home - buildings and contents combined) | 5% | 76% | £3,733 | 9% | 50% |
Best and Worst Home Insurance Companies
According to the FCA claims data, the worst home buildings & contents insurance providers were AA Underwriting Insurance Company Limited and AXA Insurance Designated Activity Company, which only accepted 55-60% of claims in 2022.
Meanwhile six companies accepted 95-100% of claims:
- AMERICAN INTERNATIONAL GROUP UK LIMITED
- Brit Syndicates Limited
- China Taiping Insurance (UK) Co Ltd
- Chubb European Group SE
- Cornish Mutual Assurance Company Limited
- Hiscox Insurance Company Limited
U K Insurance Limited (owner of popular Direct Line) accepted 85 - 90% of claims, and EUI Limited (better known by one of their trading names, Admiral) accepted just 65 - 70% of home claims.
Some insurers dispute the figures and say the way rejection levels are calculated mean the real numbers of thrown out claims will actually be lower.
Claims are listed as 'rejected' even when a customer calls a provider to check if something is covered but doesn't actually follow through with a case. This is called a 'claims walkout'.
Either way, some experts say this worrying number suggests many do not know what they are signing up for.
Home insurance is split into two parts: buildings insurance, covering fixed parts of the building, including fitted furniture, and contents insurance, covering the items inside the building.
People in rented accommodation do not need buildings insurance as this is covered by the landlord, but they may want to take out contents insurance to protect their belongings.
In addition, leaseholders (often those who own flats) largely do not require building insurance as this is usually covered by the freeholder. However, this is not always the case and if unsure, these property owners should check their legal documents and contact the freeholder to check who is responsible for buildings cover.
The AA said it will always pay claims where a customer is covered and added: "We do not believe that these figures provide a meaningful comparison for claims acceptance for several reasons, but predominantly because insurers appear to interpret the FCA definitions for claims acceptance differently."
Ageas said its data including claims walkouts and people who called in error. A spokesperson added: "While this means our claims acceptance rates look low, we’re pleased to see that our ratio of complaints is at the lower end when compared to the market."
Lloyds also disputed the figure, saying the FCA's figures included claims walkouts, and that the previous year's data only about 10 percent of claims were declined, which was lower than the FCA-reported figure.
A Qmetric spokesperson told the Daily Mail its satisfaction and renewal rates "compare well" to industry averages.
How to ensure you have the best home insurance policy
The Association of British Insurers also reports about one in five claims are unsuccessful "because people are not fully aware of what they are covered for".
The trade body has tips to ensure customers get the most out of their home insurance:
Read your policy - you can read policies of most insurers before you buy to compare which is the best home insurance for you.
Work out whether you need buildings, contents or both. As explained above, buildings covers anything fixed to your home such as walls and the roof but also fences and fitted kitchens. Contents is just the possessions inside. Unsure which is which? If you could reasonably move it to a new property it falls under contents insurance. You may not need both if you're in a leasehold or rented accommodation.
Have the right amount of buildings cover. Buildings insurance should cover the rebuild cost of a property if it was destroyed. Ensure you have the right calculation. Mortgage providers usually demand borrowers have buildings insurance. This also applies to contents, if you have valuable items such as jewellery. Fine art may require a separate policy.
Decide if you need additional cover - That includes accidental damage, public liability, legal expenses, emergency, and cover for loss of belongings which occurs outside the property.
Understand your excess – this is how much a policy holder must pay before the insurers will fork out. A higher excess may bring premiums down, but it means the policy holder will have to pay more themselves before an insurer will start funding works.
Is your home a flood risk? If so it’s worth looking into Flood Re which helps those in flood risk areas secure affordable home insurance.
Understand what isn't covered - things like wear and tear, damage due to negligence, and cover when a property is left empty for long periods of time. Insurers may offer an add-on for when homes are going to be vacant for a long period of time.
Running an at-home business? You may need extra insurance, you may not. Either way it's best to inform your insurer or risk invalidating a claim if equipment, stock or your customers’ property is lost, damaged or stolen, or customers visit the property and are injured.
READ MORE:
Home Insurance Claims Data by Insurance Company (buildings & contents)
Below, we listed the company-specific claims data by company, including statistics for claims acceptance rates, claims frequency, claims complaints as a % of claims and the average claims payout from the FCA data fro 2022. We listed the company from best to worst in terms of their claims acceptance rates.
| Firm name | Claims acceptance rate | Claims frequency | Claims complaints as a % of claims | Average claims payout |
|---|---|---|---|---|
| AMERICAN INTERNATIONAL GROUP UK LIMITED | 95 - 100% | 15 - 20% | 0 - 5% | £25000 - 25500 |
| Brit Syndicates Limited | 95 - 100% | 0 - 5% | 0 - 5% | £6000 - 6500 |
| China Taiping Insurance (UK) Co Ltd | 95 - 100% | 5 - 10% | 0 - 5% | £500 - 1000 |
| Chubb European Group SE | 95 - 100% | 15 - 20% | 0 - 5% | £18500 - 19000 |
| Cornish Mutual Assurance Company Limited | 95 - 100% | 5 - 10% | 0 - 5% | £4000 - 4500 |
| Hiscox Insurance Company Limited | 95 - 100% | 5 - 10% | 5 - 10% | £20000 - 20500 |
| Ecclesiastical Insurance Office Plc | 90 - 95% | 5 - 10% | 0 - 5% | £9500 - 10000 |
| Frank Pickles Insurance Brokers Limited | 90 - 95% | 0 - 5% | 0 - 5% | £2000 - 2500 |
| Midas Underwriting Ltd | 90 - 95% | 0 - 5% | 10 - 15% | £7000 - 7500 |
| Munich Re Syndicate Limited | 90 - 95% | 0 - 5% | 5 - 10% | £9000 - 9500 |
| SCOR Managing Agency Ltd | 90 - 95% | 0 - 5% | 0 - 5% | £9000 - 9500 |
| The National Farmers' Union Mutual Insurance Society Limited | 90 - 95% | 10 - 15% | 0 - 5% | £7000 - 7500 |
| The Salvation Army General Insurance Corporation Ltd | 90 - 95% | 5 - 10% | 0 - 5% | £3500 - 4000 |
| Tokio Marine Kiln Syndicates Limited | 90 - 95% | 0 - 5% | 0 - 5% | £2500 - 3000 |
| Zurich Insurance PLC | 90 - 95% | 0 - 5% | 5 - 10% | £9000 - 9500 |
| Arkel Limited | 85 - 90% | 0 - 5% | 0 - 5% | £3500 - 4000 |
| Frontier Insurance Solutions LTD | 85 - 90% | 5 - 10% | 0 - 5% | £4000 - 4500 |
| Tesco Personal Finance PLC | 85 - 90% | 0 - 5% | 5 - 10% | £3500 - 4000 |
| U K Insurance Limited | 85 - 90% | 5 - 10% | 5 - 10% | £2000 - 2500 |
| Canopius Managing Agents Limited | 80 - 85% | 0 - 5% | 5 - 10% | £3500 - 4000 |
| Covea Insurance plc | 80 - 85% | 0 - 5% | 5 - 10% | £2000 - 2500 |
| First Underwriting Limited | 80 - 85% | 0 - 5% | 0 - 5% | £2000 - 2500 |
| Geo Underwriting Services Limited | 80 - 85% | 0 - 5% | 10 - 15% | £3500 - 4000 |
| Haven Insurance Company Limited | 80 - 85% | 5 - 10% | 15 - 20% | £3500 - 4000 |
| Highway Insurance Company Limited | 80 - 85% | 0 - 5% | 0 - 5% | £2500 - 3000 |
| Plum Underwriting Limited | 80 - 85% | 5 - 10% | 0 - 5% | £13000 - 13500 |
| West Bay Insurance Plc | 80 - 85% | 0 - 5% | 10 - 15% | £2500 - 3000 |
| Accredited Insurance (Europe) Ltd | 75 - 80% | 0 - 5% | 5 - 10% | £2000 - 2500 |
| Advantage Insurance Company Limited | 75 - 80% | 0 - 5% | 15 - 20% | £3000 - 3500 |
| AXA Insurance UK Plc | 75 - 80% | 5 - 10% | 15 - 20% | £3500 - 4000 |
| Bspoke Underwriting Ltd | 75 - 80% | 0 - 5% | 10 - 15% | £4000 - 4500 |
| Great Lakes Insurance SE | 75 - 80% | 0 - 5% | 5 - 10% | £8500 - 9000 |
| Gresham Insurance Company Limited | 75 - 80% | 10 - 15% | 5 - 10% | £2000 - 2500 |
| Integra Insurance Solutions Limited | 75 - 80% | 0 - 5% | 5 - 10% | £4000 - 4500 |
| Liverpool Victoria Insurance Company Limited | 75 - 80% | 0 - 5% | 0 - 5% | £2000 - 2500 |
| Pro MGA Solutions Ltd | 75 - 80% | 5 - 10% | 0 - 5% | £7500 - 8000 |
| Acromas Insurance Company Limited | 70 - 75% | 0 - 5% | 5 - 10% | £2500 - 3000 |
| Aviva Insurance Limited | 70 - 75% | 5 - 10% | 5 - 10% | £3500 - 4000 |
| Royal & Sun Alliance Insurance Limited | 70 - 75% | 5 - 10% | 5 - 10% | £3500 - 4000 |
| UIA (Insurance) Limited | 70 - 75% | 0 - 5% | 5 - 10% | £4500 - 5000 |
| Ageas Insurance Limited | 65 - 70% | 0 - 5% | 5 - 10% | £4500 - 5000 |
| EUI Limited | 65 - 70% | 5 - 10% | 5 - 10% | £2000 - 2500 |
| QIC Europe Ltd | 65 - 70% | 0 - 5% | 5 - 10% | £1500 - 2000 |
| Urban Jungle Services Ltd | 65 - 70% | 0 - 5% | 15 - 20% | £2500 - 3000 |
| esure Insurance Limited | 60 - 65% | 0 - 5% | 5 - 10% | £4500 - 5000 |
| Lloyds Bank General Insurance Limited | 60 - 65% | 5 - 10% | 10 - 15% | £4000 - 4500 |
| AA Underwriting Insurance Company Limited | 55 - 60% | 0 - 5% | 15 - 20% | £3000 - 3500 |
| AXA Insurance Designated Activity Company | 55 - 60% | 0 - 5% | 10 - 15% | £7500 - 8000 |