The home insurance firms that are least likely to pay out revealed

Worried couple checking receipt sitting at home

MAJOR insurance firms are rejecting almost half of all home insurance claims – see the full list.

Some companies are turning down almost 45% of these claims.

Poorly scoring firms have blamed the way in which the FCA data is collated

Three major providers turn down around 45% of all home insurance claims

Five major firms reject just 5% of home insurance claims

But across the whole market, only 23% of all home insurance claims are rejected, according to data published by the Financial Conduct Authority (FCA).

This means some customers face necessary claim rejections based on who they took out their cover with.

Firms such as Ageas, QIC Europe and Policy Expert which has a market share of 4.7%, payout between 55-60% of all home insurance claims.

The AA and Lloyds Bank also pay out fewer claims – with only 60-65% of home insurance claims accepted.

At the other end of the scale, UK Insurance’s major firms including Direct Line, Churchill and Greenflag accept between 95% and 100% of all home insurance claims.

Chubb UK and Zurich also payout 95-100% of all their home insurance claims.

A spokesman for the AA said: “The AA Underwriting Insurance Company will always accept and pay claims where the customer is covered, and our acceptance levels aligns with larger home insurers.”

A Lloyds Bank spokesperson said: “Around 10 per cent of claims made by our home insurance customers in the second half of 2021 were declined. 

“However, the FCA data also includes things like if a customer called us to ask whether something was covered by their insurance and were informed it was not, even if they didn’t make a claim.

“We’re confident our products deliver for our customers.”

Home insurance protects your home against damage such as if you are burgled, or have a fire or flood.

It also covers your personal items such as furniture or clothes, jewellery and laptops if they are stolen or damaged.

There are two main types of home insurance: buildings and contents.

Buildings insurance covers your physical property – so its actual structure, its fixtures and fittings – while content insurance looks after your belongings.

Many insurers offer policies which combine both.

If you’re a homeowner, you’ll want to think about this type of policy.

If you’re a renter, your building insurance should be taken care of by your landlord but you should still consider getting contents insurance for your possessions.

The average UK home contains nearly £30,000 worth of possessions.

But only a third of adults have a complete understanding of what their home insurance does and doesn’t cover.

We’ve explained how you can cut the price of your home insurance renewal quote below.

How to avoid paying more

To make sure you’re getting the best deal possible on your insurance policies, you’ll want to follow our four tips below to help you.

Switch at the right time

There’s a trick to getting the best policies – and often, it’s all about timing.

You won’t want to wait until your renewal date to shop around for a better rate as you could be paying hundreds of pounds more.

Your insurer will usually send you a letter three to four weeks before your policy ends to offer you a new price.

At this point, you’ll want to look around, compare prices and switch if there’s something better – don’t leave it until the last minute.

Research by comparison website Compare The Market suggests insurance policies are £319 cheaper if you switch three weeks before your renewal date compared with switching on the day a policy ends.

Tweak your job title

Simply changing the wording of your job title can have a big impact on price.

This is because insurers see certain professions as riskier than others – which means they’ll more likely have to pay out on claims.

However, it’s important that you don’t lie about your job – it could invalidate your policy.

Compare prices

Shopping around for building and contents insurance for your home could save you £100s annually, according to Compare The Market.

To compare home insurance, you will need information such as your address, property value, security features you have installed, how much your possessions are worth and previous claims history.

Price comparison websites like Compare the Market, and MoneySuperMarket are a great place to start your search.

Haggling for a deal

If you’ve found a cheaper deal, it’s worth phoning your current insurer to see if they can beat the offer and keep you on as a customer.

If your insurer cannot offer you a better deal, then you might want to consider switching to someone else.

It could mean that you can stick with your insurer without the hassle of switching – and save cash too.