If you make an insurance claim after your home has suffered a disaster like fire, flood or burglary, you’d probably assume that you should receive a payout from your insurer. After all, you haven’t been playing with matches or hanging a sign outside saying “All burglars welcome — the key’s behind the flowerpot”. Why should you be turned down?
In fact, research by Which? and the Financial Conduct Authority (FCA) has revealed that this is by no means certain. In 2023, the overall percentage of claims accepted under combined building and contents policies was 72%, as opposed to 76% in 2022. For building only policies, it was 63%, down from 67%.
This means that between a quarter and a third of claims are turned down by the loss adjuster — but that’s just the tip of the iceberg. For the six worst-performing insurers, the figures are down below 55%, and the worst of all pays out on as little as 30%.
This is in spite of the fact that, under FCA regulations, insurance firms have an obligation to deliver good outcomes for their customers, and to ensure vulnerable customers receive outcomes that are at least as good as those of other customers. The FCA has found that many insurance firms are failing to meet these obligations.
What Can You Do to Protect Yourself?
As Which?’s Rocio Concha says, “That customers who’ve been through hellish ordeals, such as a fire in their house, face lengthy battles with their insurer just to have their claim accepted is extremely concerning.”
Ultimately, the answer is for the FCA to ensure that all insurers are obeying their regulations. In the meantime, though, there are things you can do to avoid having your insurance claim turned down.
For one thing, many of the rejections appear to be due to customers having difficulties understanding the complexities of their policies and turning out not to be covered as they thought. That risk can be considerably reduced if you go through an insurance broker, who’ll find out what you need and make sure your policy covers it.
And, crucially, if you do need to make a claim, it could make a massive difference to appoint a loss assessor like Allied Claims to act on your behalf. A loss assessor has at least as much expertise as the company’s loss adjuster — and it’s all at your disposal, to make sure you aren’t turned down on some technicality.
If you’ve been through a fire, flood or burglary, or any other disaster that’s occurred to your home, the last thing you need is a fight with your insurer. So sit back and let Allied Claims do it for you.
Disclaimer
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