New research by Compare the Market shows that 94% of home insurance policyholders in the UK received most or all of their claimed amounts from their
insurers.
Over one in four homeowners (28%) have made a claim, typically receiving an average payout of £5,640, with nearly two-thirds (63%) receiving the full amount they requested.
According to the research, 14% of homeowners reported claims under £1,000, while 31% claimed between £1,000 and £3,000. Around 11% of claims were for amounts exceeding £8,000. Among the homeowners who filed claims, 63% received full payment, and 31% received most of the amount claimed, while only 6% received partial or no payment.
The study noted generational differences in payout experiences, with baby boomers (aged 55 and older) nearly twice as likely (73%) to receive full payment compared to Gen Z claimants (aged 18-24), of whom only 41% received the full amount.
Water damage emerged as the leading cause of home insurance claims, accounting for 28% of claims, followed closely by accidental damage (27%), repair costs (21%), flood or storm damage (18%), theft (12%), and fire or smoke damage (11%).
For various reasons, 16% of respondents had their home insurance claims denied. The primary reason for claim denials was that policyholders had overlooked specific coverages in their policy, such as accidental damage or personal possessions cover, with 24% affected by this oversight.
Additional denial factors included special policy conditions (20%), lack of reasonable care by the homeowner (19%), such as leaving keys in the door, and missed policy payments (18%). Another 16% either did not follow the claims process properly or were unaware of certain policy exclusions.
The study also found that the majority of homeowners understand the value of home insurance, with 95% holding a policy. Over 94% of those who filed a claim reported feeling reassured by having coverage, and 99% said they would recommend home insurance to others.
Ahead of policy renewals, nearly half of homeowners (46%) reported actively shopping for better deals, while 35% do so occasionally. Only 4% reported never comparing other policy options before renewal. Compare the Market noted that its customers could save up to £220 on buildings and contents insurance by comparing options.
Guy Anker (pictured above), director at Compare the Market, commented on the findings, noting that rising living costs are prompting households to scrutinise their budgets.
“It is encouraging to see that homeowners are aware of the value that having a home insurance policy brings, saving many of them spending significant amounts of money on home repairs,” he said. “You can choose to buy buildings insurance and contents insurance either together or separately. Whether you’re a homeowner or a renter, it’s important to shop around on your home insurance to check what deals are out there and find cover which works for you.”
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