SOME home insurers are still accepting fewer than half of customer claims, Which? has found.
The consumer champion has analysed the Financial Conduct Authority’s (FCA) latest data on general insurance value measures.
The analysis has found that three firms – esure, Lloyds Banking and Rentokil – accept less than half of customer claims for buildings only cover.
According to the analysis, each of these insurers have claims acceptance rates of 45% to 50%.
But across the whole market, Which? says that less than two in three (63.2%) claims were accepted for buildings only cover.
This means some customers face necessary claim rejections based on who they took out their cover with.
The Which? analysis also found 15-20% of all claims esure received for their buildings only cover resulted in a complaint.
For Lloyds, this figure was 10-15%.
A Lloyds Banking Group spokesperson said: “We’re surprised Which? continues to ignore the FCA’s guidance that home insurance acceptance data should be used with caution and that comparison between firms may not be like for like, noting the possibility of inconsistent reporting between firms and differing interpretations of their reporting guidelines.
“Our value measures data includes a range of customer enquiries, while other firms exclude these. Lloyds accepted 83% of claims in 2024 and our policy cover is strong relative to the market.
“We’re committed to working with the FCA, industry peers and consumer groups to improve the clarity of these metrics because a more consistent approach will help consumers make better-informed decisions.”
Rentokil only offers specialist property insurance products covering woodworm, wood rot and rising damp problems – and said that, as these issues are challenging to determine by their very nature, this will affect claim rates.
A spokesperson added: “Our expert assessors work to reassure our policyholders, helping them understand the root causes of property problems, and advising on solutions.”
Meanwhile, a spokesperson for esure said the “majority of rejected claims” relate to customers claiming for things they’re not covered for.
They added: “We are therefore working to boost customers’ understanding of their levels of cover at the point of buying the policy, as well as giving clear, helpful reminders of cover levels and excess payments at the point of making a claim, and ensuring timely, proactive communication with customers all the way through to settlement.”
The analysis comes just weeks after Which? called on the financial regulator to take urgent action with a rare super-complaint.
The organisation claims poor claims-handling and unclear policy terms are leaving customers stranded at their most vulnerable moments.
What is a super complaint?
A SUPER-complaint is a powerful legal tool that allows certain consumer organisations, like Which?, to raise concerns about widespread issues that harm large numbers of customers in a specific market.
It is designed to highlight practices that significantly affect consumers and demand urgent attention from regulators.
The Financial Conduct Authority (FCA) must respond to a super-complaint within 90 days, outlining whether it agrees with the concerns raised and detailing any action it plans to take.
Super-complaints are rare but can lead to major changes.
Which? last used this tool in 2016 to tackle banks’ poor handling of authorised push payment (APP) fraud.
While initially rejected, the campaign eventually led to new laws forcing banks to reimburse victims of bank transfer scams.
The consumer champion argues that home and travel insurance are the insurance types with some of the lowest claims acceptance rates – with home insurance at just 63% cent and single-trip travel insurance at 80.4%.
Rocio Concha, Which? director of policy and advocacy, said: “The home insurance market is currently failing to meet customer needs and require urgent regulatory action.
“With claims acceptance rates across the sector still stubbornly low, many customers are forced to endure ordeals with their insurer that can become far more stressful than the original event they are claiming for.
“It’s time for the regulator to get tough with firms failing consumers, sending a clear message that poor performance won’t be tolerated any longer.”
What type of insurance do I need?
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.
How to cut home insurance costs
If you’re looking to save money on home insurance generally, there are ways to cut costs on both types of policy.
Ceri McMillan, insurance expert at Go Compare previously told The Sun renewing your policy 27 days ahead of it expiring could save you £60.
And at the very least, don’t wait for your policy to auto-renew as you’ll likely pay more than if you shop around for a cheaper deal.
If you’ve got the money up front, it’s worth paying for your premium in one lump sum as well.
Ceri previously told The Sun you can save around 10% on your premium using the trick.
Combining contents and buildings policies rather than paying for them separately could save you £100 a year as well, according to Confused.com.
Installing a burglar alarm can help drive down your premium price as well, albeit after the initial up front cost.
Consumer group Which? says you can get an alarm for around £100, and install it yourself to save extra cash.
