What to Do If Your Home Insurance Claim Is Rejected?

A rejected insurance claim is frustrating, particularly when you believe the damage or loss should be covered. But a rejection isn’t necessarily final. Here’s what to do, step by step.

Step 1: Read the rejection letter carefully

Your insurer is required to give you a clear reason for declining your claim. Read the rejection letter thoroughly and look for the specific grounds cited. Common reasons include:

• Policy exclusion: The cause of the damage or loss is explicitly excluded from your cover, such as wear and tear or gradual deterioration.
• Non-disclosure: You didn’t disclose relevant information when taking out the policy, such as a previous claim or a known risk.
• Documentation issue: The claim lacked sufficient evidence or supporting paperwork.
• Claim value exceeding policy limits: The amount claimed was above the single-item limit or total sum insured.
• Conditions not met: For example, a burglary claim where doors or windows were left unlocked.

Understanding the precise reason is the starting point for everything that follows.

Step 2: Check your policy documents

Once you know the stated reason, check your policy documents to see whether the rejection is consistent with your actual cover. Look specifically at:

• The list of covered perils and any named exclusions
• Single-item limits and your total sum insured
• Any conditions attached to cover, such as security requirements
• The claims notification requirements and whether you met them

If you can’t find anything in your policy that supports the rejection, that’s important information to have when you contact your insurer. Our guide on making an insurance claim covers what a standard claims process involves and what insurers typically require.

Step 3: Contact your insurer

Get in touch with your insurer directly, in writing if possible, to ask for a clear explanation of their decision. Be specific about what you’re querying and reference the relevant sections of your policy.

Ask whether:

• There’s additional information or documentation you can provide that would change their assessment
• The decision can be reconsidered given the specific circumstances
• There was a misunderstanding in how the claim was assessed

Keep a record of all communication, including dates, who you spoke to, and what was said. Written correspondence is preferable as it creates a clear trail.

Step 4: Raise a formal complaint

If your insurer maintains the rejection and you still believe it’s wrong, raise a formal complaint through their official complaints process. This is a separate step from simply querying the decision and carries more weight.

Your complaint should:

• Set out clearly why you believe the rejection was incorrect
• Reference the specific policy terms you believe support your claim
• Include any additional supporting evidence, such as photos, receipts, repair quotes, or expert assessments
• Request a written response

The insurer is required to acknowledge your complaint promptly and provide a final response within eight weeks. Keep copies of everything you send and receive.

Step 5: Escalate to the Financial Ombudsman Service

If your complaint isn’t resolved satisfactorily within eight weeks, or if the insurer issues a final response that you still disagree with, you can refer the matter to the Financial Ombudsman Service (FOS).

The FOS is free to use, independent, and will review whether the insurer acted fairly based on your policy and the circumstances. If they find in your favour, the insurer may be required to pay the claim, offer compensation, or both.

When you contact the FOS, have the following ready:

• Your policy documents
• The full claims correspondence
• The insurer’s final response or eight-week letter
• Any supporting evidence you submitted

You generally have six months from the insurer’s final response to refer a case to the FOS. Our guide on what to do if your insurance payout is delayed covers related escalation steps.

How to reduce the risk of a rejected claim next time?

A few straightforward habits help:

• Review your policy annually. Make sure your cover still reflects your circumstances and the value of your belongings.
• Document your belongings. Keep photos, receipts, and valuations for high-value items.
• Report claims promptly. Most policies require you to notify your insurer within a reasonable time of an incident. Delays can complicate a claim.
• Disclose accurately. When taking out or renewing a policy, disclose all relevant information honestly. Non-disclosure is one of the most common grounds for a rejected claim.
• Check conditions before assuming you’re covered. If your policy requires doors and windows to be locked for theft cover to apply, make sure that condition is met.

Before we go

A rejected claim is a setback, but it’s not necessarily final. Read the rejection letter carefully, check it against your policy, contact your insurer for clarification, and escalate formally if you still disagree. The Financial Ombudsman Service exists specifically to resolve these disputes fairly and at no cost to you.

With Lemonade’s home insurance, your policy documents set out clearly what’s covered and what’s not, so there are fewer surprises if you need to make a claim. 

Rejected home insurance claim FAQs