Home Insurance Shock: Major Firms Rejecting Over Half of Claims
New analysis from consumer champion Which? has uncovered alarming data about home insurance claim acceptance rates across Britain. The investigation, based on Financial Conduct Authority (FCA) data on general insurance value measures, reveals that three major insurers are accepting less than half of customer claims for buildings-only cover.
The Worst Performers Named
Which? has identified Lloyds Banking, esure, and Rentokil as the companies with the poorest claim acceptance records. Each of these insurers was found to have acceptance rates between just 45 per cent and 50 per cent for buildings insurance claims. This means more than half of customers making claims with these providers saw their requests denied.
The consumer champion's analysis also highlighted significant complaint rates. Between 15 to 20 per cent of all buildings claims submitted to esure resulted in a complaint, while for Lloyds the figure stood at 10 to 15 per cent.
Industry Response and Justifications
A Lloyds Banking Group spokesperson expressed surprise at Which?'s approach, stating: "We're surprised Which? continues to ignore the FCA's guidance that home insurance acceptance data should be used with caution." The spokesperson claimed Lloyds accepted 83% of claims in 2024 and highlighted that their data includes a wider range of customer enquiries than some competitors.
Rentokil explained its specialist position, offering cover specifically for woodworm, wood rot, and rising damp problems. A company representative noted that "these problems can often be difficult to determine" which impacts claim rates, adding that their assessors work to help policyholders understand root causes.
Esure attributed its rejection rates to customers submitting claims for issues not covered by their policies. A spokesperson said they're working to improve customer understanding of coverage levels "at the point of buying the policy" and throughout the claims process.
Broader Market Context
Across the entire home insurance market, Which? found that approximately two in three (63.2 per cent) of claims were accepted for buildings-only cover. This broader context shows that while most insurers accept the majority of claims, significant disparities exist between providers.
The findings highlight the importance of consumers carefully checking policy details before purchasing home insurance and understanding exactly what their coverage includes to avoid unexpected claim rejections.
