Major home insurance providers in the UK are still rejecting the majority of customer claims, according to a damning new investigation by consumer champion Which?.
The Insurers Named for Poor Performance
The analysis, based on the Financial Conduct Authority's (FCA) latest general insurance value measures data, has singled out three prominent insurers for their low acceptance rates on buildings-only cover. The firms identified are esure, Lloyds Banking Group, and Rentokil.
Shockingly, the study found that each of these companies accepted only between 45% and 50% of claims made by their customers for buildings insurance. This means that for every ten claims submitted, more than five were turned down.
Industry Response and Consumer Ordeal
In response to the findings, a spokesperson for Lloyds Banking Group expressed surprise, stating that Which? was ignoring FCA guidance that the data should be used cautiously due to potential inconsistencies in reporting between firms. They claimed their own acceptance rate for 2024 was 83%.
Rentokil emphasised its assessors' role in helping policyholders understand property problems. Meanwhile, esure stated that most rejected claims were for issues not covered under the policy, highlighting a communication gap at the point of sale.
However, Rocio Concha, Which? director of policy and advocacy, delivered a stark verdict. "The home insurance market is currently failing to meet customer needs and requires urgent regulatory action," she said. Concha warned that low acceptance rates force customers into stressful ordeals that can be worse than the original incident they claimed for.
Calls for Regulatory Action
The report underscores a persistent sector-wide issue, with less than two in three claims being accepted for buildings-only cover overall. Which? is now urging the FCA to take a tougher stance, arguing that poor performance from insurers should no longer be tolerated.
This investigation, published on 7 December 2025, follows ongoing concerns about value and fairness in the home insurance market, putting renewed pressure on providers to improve transparency and service for UK households.
