Why Insurance Claims Are Being Denied – And How Property Claim Assist Can Help

We recently discussed how Consumer Duty has failed to improve customer outcomes in the insurance industry. While the supposed simplification of home insurance products was meant to make it easier for consumers to understand their coverage, it hasn’t had the desired effect. Many consumers are still unaware of the limits of their insurance policy and often face difficulties, particularly when their insurance claim is denied.

At Property Claim Assist, based in Maidstone, England, we have years of experience handling property claims, yet we’re still shocked by the way many customers are treated by their insurance companies when their home insurance claim has been denied. Sadly, it seems that the situation is getting worse. This is supported by the latest data:

  • FCA data shows that claims acceptance rates for buildings-only and combined buildings and contents policies has declined in at least half of all insurance companies surveyed.

  • The FCA’s recent review into insurers’ delivery of good customer outcomes found that many companies are failing to meet their regulatory obligations, often leading to insurance claim denials.

  • Many homeowners have had particularly stressful and difficult experiences with their insurers after making a claim, sometimes resulting in an unfair insurance claim denial.

The Growing Issue: Rising Rates of Insurance Claim Denials and Poor Customer Treatment

FCA Data Highlights Declining Claim Acceptance

One of the key problems seems to be that claims handlers in insurance companies have become desensitised to the real human impact of their decisions. The people leading these operations either seem disconnected from the customer experience or, worse, don’t care at all when a legitimate insurance claim is denied.

Bad Faith Practices Leading to Denied Claims

We’ve seen a growing epidemic of bad faith practices by insurers. Consumer organisations like Which? have recently highlighted a shocking statistic – that some home Insurers are accepting as few as one in three claims. This leaves customers in a terrifying situation, struggling to repair their homes after fires, floods, and other traumatic events, often because their property insurance claim was denied.

Many of our customers in the UK, unfortunately, can relate to this grim reality of having their insurance claim denied.

The Need for Change: Why Customers Deserve Better When Facing an Insurance Claim Denial

Vulnerable Customers Facing Insensitive Handling

At Property Claim Assist in Maidstone, we understand that we often see the worst examples of customer experiences. Many of the people who contact us are already vulnerable due to the loss they’ve suffered, and yet insurers and Loss Adjusters often fail to take their needs into account in the pursuit of the lowest possible costs, sometimes leading to an unjustified insurance claim denial. We are fighting an ongoing battle on behalf of these individuals to help them get what they deserve after an insurance claim denial.

What Needs to Happen: Stronger Regulatory Action to Prevent Unfair Insurance Claim Denials

Which? Calls for Stronger FCA Intervention

Which? believes that the FCA must take stronger action against companies that fall short of their regulatory obligations, especially concerning insurance claim denials. Insurers have been held to industry standards for years, many of which predate the Consumer Duty. Despite this, the same issues continue.

The Urgent Need for Better Service and Fair Claim Handling

It’s time for regulatory reviews to lead to meaningful actions. The FCA must enforce regulations and intervene to prevent future failings and ensure fair handling of insurance claims. Insurance customers urgently need better service and protection against unfair insurance claim denials, and it’s clear that action must be taken to make this happen. While we continue to fight for consumers who have had their insurance claim denied, we applaud Which? for their important work in bringing these issues to light and pushing for change.

Need Help with a Denied Insurance Claim? Contact Property Claim Assist

The Value of a Loss Assessor in Property Claims

Many insurers have missed the opportunity to improve customer outcomes, and it’s clear that regulators must step in. However, in the meantime, you don’t have to face the claims process alone, especially if you’ve experienced an insurance claim denial. A Loss Assessor can provide vital support when you’re dealing with a property claim.

Our Expertise in Navigating Complex Claims and Denials

Our team in Maidstone understands the intricacies of the claims process and can help you navigate the complexities of your insurance policy, particularly if you are appealing an insurance claim denial. We know what information is necessary, how to present your claim most effectively, and how to make sure you get a fair outcome, even after an initial insurance claim denial. Having an expert on your side really can make all the difference when dealing with a property claim or a previous insurance claim denial.

Get Expert Support for Your Property Claim Today

If you need support with a property claim, especially if your insurance claim has been denied, get in touch with our team today by calling 0333 577 2720.

Need support?

Property Claim Assist help policyholders submit & manage their property insurance claims.

Ensure a fair settlement for your property insurance claim.

Client Feedback

Reviews from previous policyholders that have appointed Property Claim Assist to manage their claim.

We pride ourselves on managing your property insurance claim, ensuring that we take the weight off your shoulders, with a stress free process.

“Thank goodness I had these guys by my side”

After a traumatic accidental house fire I was a little lost on how to deal with the insurance and the claim. I reached out to these guys and thank god I did! Simon and everyone else at Property Claim Assist were invaluable and I honestly don’t know if I could have got through it all without them. Handling a big and complex insurance claim is very stressful and complicated. The guys at PCA explained how everything worked and guided me through it all and took up a lot of slack and a lot of the work. Thank goodness I had these guys to depend on.

Paul, Fire Insurance Claim
“Professional Handling of the Claim while I was Overseas”
Professional, timely, efficient and effective handling of a massive Escape of Water Claim in a Grade II listed cottage. Gary knows the process, has the contacts and gets things done. I was having to deal with this loss while overseas, so having the Property Claim Assist interfacing with the insurance company, surveyor and contractors was a godsend. Would not have had such a fabulous remediation without Property Claim Assist.

Dr Ford, Fire Insurance Claim, Fire Insurance Claim

“Amazing from start to finish”

Where do I start…Property Claim Assist took our case on when no one else would. They have been brilliant from day 1. We were fighting a loosing battle with the insurance company. They were 100% professional and adept from start to finish. They have been patient and empathetic and got the job done. We will be forever grateful to PCA. The experience has been life changing in many ways but we are in a massively better off position than we were before we contacted them. I cannot recommend PC Assist highly enough.

Alison, Property Insurance Claim, Fire Insurance Claim