ABI have issued a new guide on home insurance hoping to reduce the number of unsuccessful claims
The Association of British Insurers has issued a home insurance guide in a bid to reduce the number of unsuccessful claims.
The ABI pledged to improve consumer trust and confidence in insurance following analysis of home insurance claims published earlier this year.
James Dalton, ABI director of general insurance policy, said: “The winter floods showed what insurance is all about, providing practical help and support to people at the most traumatic times.
“This new guide is part of the industry’s commitment to improve customer understanding and clarity around the claims process.
“Home insurance is competitive so it’s important people shop around to get the right insurance product for them and don’t buy on price alone.”
Every day, home insurers pay out £8m in claims to help customers recover from unwelcome events such as a flood, fire or burglary.
According to the ABI’s analysis of 1.8 million home insurance claims made during 2013 and 2014, the average pay-out was £2,520, compared to the current average combined buildings and contents annual premium of £310.
The analysis showed that nearly four in five claims were successful. Common reasons for a claim not being successful were problems not typically covered, such as wear and tear or lack of maintenance, claims below the policy excess and not having the right level of cover.
