Avoiding rejected insurance claims

August 23, 2013 7:16 am

We wrote recently about the Financial Conduct Authority review of how insurance claims are handled. This news has led to lots of press articles on why claims are rejected – and of course we see similar problems in our dealings with clients.

Which? recently reported how one claim was turned down by an insurer because the policyholder had not regrouted their bathroom tiles every year. Another example was about a claim for storm damage which was rejected because the insurer said the wind-speed was not high enough on the night concerned. And yet another reported on an unsuccessful claim for freezer contents because the claimant didn’t have receipt for all the ruined food.

Ambiguous small print

In all three cases, the small print on the policies was ambiguous: for example, the property must be ‘kept in good condition’, which led to the problem over the grouting; or proof of ownership is needed to prevent fraud, which applied to the freezer contents.

This illustrates exactly why we welcomed the news of the FCA review and we look forward to the results, which are expected at the end of the year. In the meantime, we published some advice recently on how to avoid having your claim rejected, which would avoid some of the problems highlighted by Which?