One in five (21 per cent) of claims on home insurance during 2013 and 2014 was turned down, according to figures out today from the Association of British Insurers (ABI).
The first set of insurance payout statistics ever published by the ABI also revealed that 99 per cent of motor insurance claims were accepted, as were 87 per cent of claims made on travel products.
The analysis, which was carried out to help the Association identify areas were consumers were confused about what their insurance covered, discovered that the main reasons for home insurance claims being rejected were damage caused by wear and tear or lack of maintenance not being covered, the value claimed being below the policy excess and customers not having purchased additional cover, such as insurance against accidental damage.
"Contrary to popular belief, insurers want to pay honest claims," said Huw Evans, director general of the ABI. "It helps nobody when customers have bought the wrong product or have not disclosed important information."
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On those claims that were successful, the ABI found that the average amount paid out was £2,160 for motor insurance, £2,520 on home insurance and £884 on travel insurance.