New research from Which? indicates that over ten percent of home insurance claims are rejected. The survey, which sources data from over 4,800 people, found that one in ten home insurance claims and one in twenty car insurance claims were rejected, either fully or partially, by insurance companies.
While the vast majority of insurance customers reported being happy with the way that their claims were handled, a minority reported being rejected for reasons that they thought were ways for their insurers to ‘weasel out’ of compensating them for legitimate claims.
One of the members surveyed for the report claimed that they had been refused an insurance claim after they failed to re-grout their bathroom tiles each year. Others have claimed that home insurance claims for damage cause by storms were turned down after insurers calculated that the wind speeds simply weren’t high enough.
Others often related to proof of ownership, particularly in claims that involved the theft of an item. Homeowners were often disappointed to learn that items such as jewellery bought decades in advance and quite understandably lacking a receipt, was turned down after insurers claimed its ownership couldn’t be verified.
Consumer groups advise insurance owners to be vigilant in keeping records of the products that they own. Home insurance claims are reportedly given a far greater amount of attention when they’re accompanied by video evidence of ownership, as well as reports to local police forces after an accidental loss.
Other common issues include car insurance claims, in which cars were frequently undervalued by insurers in order to reduce accident payments. A large number of people that responded to the survey reported being disappointed after their auto insurance company listed a low value for their vehicle following a major crash.
