Some Insurers Accept 45% of Home Claims, Others 85% : Why the Gap Matters to You

Buying home insurance is usually a fairly routine job. You compare prices, check the excess, confirm your address and hope you never need to think about the policy again.

But recent Financial Conduct Authority (FCA) data suggests that the insurer you choose can make a significant difference when something goes wrong.

The latest figures show a wide gap in home insurance claims acceptance rates. Some providers accepted only around 45% to 50% of certain claims, while others recorded rates of 85% or more – with some reaching the 95% to 100% range.

That does not mean every claim with a lower-rated provider will be rejected. Nor does a high acceptance rate guarantee that your individual claim will be paid. However, the figures do highlight an important point: home insurance is about more than finding the cheapest premium.

The figures

The FCA’s General Insurance Value Measures data covers the period from January to December 2025. It includes information such as claims frequency, claims acceptance rates, average payouts and complaints.

For home insurance, the FCA reported claims acceptance rates of between 62% and 71%, depending on the type of policy. That is lower than the figures recorded for travel insurance and considerably lower than the rate for motor insurance.

Previous FCA data, analysed by Which?, showed the gap between individual firms could be much wider:

• Some providers accepted around 45% to 50% of buildings-only claims.
• Several providers accepted between 50% and 55%.
• Some firms accepted 55% to 60% of combined buildings and contents claims.
• Other insurers recorded acceptance rates of 85% or more.
• At the upper end, some firms were in the 95% to 100% range.

Which? also reported that 24 firms accepted fewer than three-quarters of combined home insurance claims in the 2024 data.

These numbers can look startling. But the FCA has warned that the data should be treated with care because insurers do not always report claims in exactly the same way. Different products, customer groups and reporting methods can affect the results.

Even so, the gap is large enough to deserve your attention.

You can read the FCA’s latest General Insurance Value Measures data for the full explanation and figures.

What it means

A claims acceptance rate is the proportion of registered claims that were not rejected. It is a useful market indicator, but it is not a promise that a particular claim will be successful.

For example, a claim might be rejected because:

• The incident is not covered by the policy.
• The policyholder does not have the relevant add-on or level of cover.
• The excess is higher than the value of the claim.
• The policyholder has not taken reasonable care of the property.
• Important information was missing or incorrect when the policy was arranged.
• The damage is caused by wear and tear rather than a sudden insured event.
• The buildings or contents sum insured is not high enough.

A washing machine that suddenly leaks and damages the kitchen may be covered under one policy but treated differently under another. A roof that has slowly deteriorated over several years is unlikely to be treated in the same way as storm damage.

That is why the headline acceptance rate should be seen as a starting point – not the whole story.

The FCA says its data is not intended to help consumers choose insurance products directly. It is historical, and the regulator has identified inconsistencies in how some firms report home claims data.

Still, the information raises a sensible question: if two policies cost a similar amount, why would you not look more closely at the insurer behind each one?

Price is not enough

It is understandable that price is important. Household bills have a habit of appearing from every direction, rather like guests who were not invited but have brought a calculator.

However, the cheapest home insurance policy may not provide the best value if it offers lower limits, more exclusions or a claims process that does not suit your needs.

When comparing policies, it is worth looking at:

• Whether you need buildings insurance, contents insurance or both.
• The level of buildings cover and how the rebuild cost is calculated.
• The contents sum insured and any single-item limits.
• Accidental damage cover.
• Alternative accommodation if your home becomes uninhabitable.
• Home emergency cover.
• Cover for personal possessions away from home.
• Trace and access cover for locating leaks.
• The standard and voluntary excesses.
• Any restrictions relating to unoccupied periods.
• How high-value items such as jewellery, watches, bicycles or musical equipment must be listed.

Our guide to getting the right home insurance cover explains why an accurate valuation matters. Buildings insurance should generally be based on the cost of rebuilding your home, rather than its market value. Contents insurance should reflect the cost of replacing your belongings – including the items you might not think about very often, such as clothes, kitchen equipment and children’s toys.

Read the wording

A policy summary is useful, but it cannot tell you everything.

Before buying home insurance, check the policy wording and the important information documents. These should explain what is covered, what is excluded and what you need to do to keep the cover valid.

Pay particular attention to:

Escape of water

Water damage is a common source of home insurance claims. Some policies cover the resulting damage but may not cover the cost of repairing a gradually failing pipe or appliance.

Storm damage

Policies can define storm damage differently. There may also be requirements to keep the property in a reasonable state of repair.

Subsidence

Subsidence cover may have specific conditions, excesses and evidence requirements. If you have had previous movement or structural concerns, make sure this is discussed when arranging cover.

Valuables

A standard contents policy may have limits for jewellery, artwork, antiques, bicycles or electronics. A wedding ring disappearing down the plughole is bad enough without discovering that the policy limit is lower than its replacement cost.

Wear and tear

Home insurance is designed for sudden, unexpected insured events. It is not normally a maintenance contract. Faded carpets, ageing boilers and tired roof tiles may need to be dealt with separately.

T&R Direct’s guide to checking the small print on home insurance offers further points to consider.

Choose the insurer

This is where using an insurance broker can be helpful.

A broker can discuss your circumstances, compare available options from its panel of insurers and help you focus on the level of cover rather than simply the lowest number on a quote screen.

At T&R Direct, we offer a range of home insurance options from a panel of leading UK insurers. This includes buildings and contents insurance, high-value home insurance and home excess protection.

The aim is not to suggest that one insurer is right for every household. A policy that suits a leasehold flat may not suit a detached house with outbuildings. A standard contents policy may not be suitable if you own expensive jewellery, specialist equipment or a significant collection.

Instead, it is about asking better questions:

• Does the insurer cover the risks that matter to you?
• Are the limits suitable?
• Are the exclusions clear?
• Is the excess affordable?
• Have you disclosed relevant facts accurately?
• Does the policy provide useful support if you need to claim?

A broker cannot guarantee that a claim will be accepted. No insurer can do that without knowing the details of the event and the policy terms. But comparing a wider selection of policies can help you avoid choosing based on price alone.

Make a claim

If you need to claim, report the incident as soon as reasonably possible and follow the instructions in your policy.

You may need to:

• Contact the police if you have suffered theft or criminal damage.
• Take photographs and keep damaged items where it is safe to do so.
• Keep receipts, valuations and proof of ownership.
• Take reasonable steps to prevent further damage.
• Avoid arranging major repairs before speaking to the insurer, unless emergency work is needed.
• Keep records of conversations, emails and claim references.

And remember that honesty matters. If your circumstances, property use or sums insured have changed, tell your insurer. An extension, conversion, new business use or period of unoccupancy could affect your cover.

Our home insurance advice includes practical reminders about security, valuables, reasonable care and keeping your contents valuation up to date.

The bigger picture

The FCA’s data does not tell you which policy to buy. It also does not explain every difference between insurers.

A provider dealing with complex flood, subsidence or major escape-of-water claims may have a different claims profile from one insuring a narrower group of risks. Some firms may register general enquiries as claims, while others may record only claims that clearly fall within the policy.

The FCA has acknowledged these limitations and says it is working with the industry to improve reporting consistency.

That said, a large difference in acceptance rates should not be ignored. It is a useful prompt to look beyond the premium and consider the policy wording, exclusions, limits, claims service and suitability for your home.

A better comparison

When renewing or buying home insurance, try this simple approach:

1. Work out what you need to insure. Include the building, contents and any high-value items.
2. Check the policy wording. Do not rely only on the headline benefits.
3. Compare the excess and limits. A low premium can come with higher out-of-pocket costs.
4. Look at the insurer, not just the brand. Some brands use different underwriters for different policies.
5. Use a broker where appropriate. A wider panel may give you more options to consider.
6. Answer questions accurately. Incorrect information can create problems at claim stage.
7. Review your cover each year. Your home and possessions rarely stay exactly the same.

The difference between a 45% claims acceptance rate and an 85% rate is not a prediction of your personal outcome. But it is a reminder that home insurance is about how a policy works when you need it – not only how much it costs when you buy it.

If you are reviewing your cover, contact T&R Direct to explore competitive home insurance options from our panel of UK insurers. You may also be able to save money – but the priority is finding cover that fits your home and circumstances properly.

Sources: FCA General Insurance Value Measures data 2025 and Which? analysis of home insurance claims acceptance rates. Claims data is historical and should be interpreted with the FCA’s stated limitations in mind.