Some of the UK's biggest insurance companies are only paying out on around half of all claims, figures from the Financial Conduct Authority reveal.
One in four claims on average are rejected, but insurers argue the real figure is lower than this as customers do not understand what their insurance covers. By contrast around 99% of car insurance claims are accepted by insurers, according to FCA figures.
Insurance firms say that that the 23% figure of denied home insurance claims is more complicated than it first appears as they also include customers who contact their insurer to ask if something is covered under their insurance, but end up not claiming, a scenario known as 'claims walkout'.
