How to Make a Home Insurance Claim UK: FCA ICOBS 8 Rules Explained

What counts as a claimable event

A standard UK home insurance policy is split into buildings cover, which protects the structure, and contents cover, which protects belongings. A claim is only valid where the cause of loss is an insured peril listed in your policy schedule. Common insured perils include fire, storm, flood, escape of water from pipes or tanks, theft, malicious damage, subsidence and impact by a vehicle or falling object.

The cause matters more than the symptom. Water staining a ceiling could be a sudden burst pipe, which is usually covered, or gradual seepage and damp, which is usually excluded as wear and tear. Insurers draw this distinction sharply, so before you claim it helps to read the definitions and exclusions in your policy wording rather than relying on the headline summary.

Most policies also carry an excess, the first slice of any claim you pay yourself. Subsidence claims typically carry a much higher excess, often around 1,000 pounds, set by reference to mortgage lender requirements rather than chosen by you. If the likely repair cost is close to your excess, claiming may not be worthwhile and could still affect your renewal premium.

Step one: notify your insurer quickly

Almost every policy includes a condition requiring you to report a loss as soon as reasonably possible. For theft or malicious damage you will usually need to report the incident to the police first and obtain a crime reference number, which the insurer will ask for. Keep a note of who you spoke to and when.

Notify even if you are unsure whether you will proceed. Late notification can prejudice the insurer's ability to investigate, and a serious delay may give it grounds to reduce or decline a claim. The FCA expects fair handling, but you also have duties under the policy, and prompt notification is the clearest of them.

When you call, have your policy number, the date and time of the loss, a description of what happened and an estimate of the damage to hand. For escape of water or a major leak, the insurer may arrange emergency works such as drying equipment under the claim; ask before you commission anything yourself.

Step two: prevent further damage and gather evidence

You have a duty to mitigate, meaning to take reasonable steps to limit further loss, such as turning off the stopcock after a burst pipe or boarding a broken window. Keep receipts for any emergency expenditure because reasonable mitigation costs are often recoverable.

Evidence is the backbone of any settlement. Photograph and video the damage from several angles before you move or dispose of anything. Retain damaged items where it is safe to do so, as the insurer may want to inspect them. For contents, build a list of lost or damaged belongings with approximate ages and, where you have them, receipts, bank statements, photographs or instruction manuals as proof of ownership and value.

Do not throw away damaged goods or start permanent repairs until the insurer confirms you can. If you authorise work prematurely you may lose the chance to demonstrate causation, and the insurer may dispute the scope of the loss.

Step three: the loss adjuster and assessment

For larger or more complex claims the insurer often appoints a loss adjuster, an independent professional who investigates the cause, scope and value of the loss on the insurer's behalf. The adjuster will inspect the property, review your documents and may instruct specialists such as a drainage engineer for subsidence or a restoration contractor for fire and smoke damage.

You can engage your own loss assessor, who acts for you rather than the insurer, but you usually pay their fee yourself. For straightforward claims this is rarely necessary; for large or disputed ones it can help. Be wary of cold callers offering to manage a claim, and check that any firm you instruct is reputable.

The settlement can be a cash payment, a repair arranged through the insurer's approved contractor network, or replacement of items. Contents are often settled on a new for old basis, replacing items with equivalent new ones, though some categories such as clothing may be settled on an indemnity basis that deducts for wear.

How FCA rules protect you during the claim

The FCA's ICOBS 8 sets the conduct standards for claims handling. Insurers must handle claims promptly and fairly, provide reasonable guidance to help you make a claim, not unreasonably reject a claim and settle promptly once settlement is agreed. These are regulatory obligations, not goodwill, and a firm that ignores them risks regulatory action.

The Insurance Act 2015 reshaped the consequences of non-disclosure. An insurer can only apply a remedy where there has been a qualifying breach, and the remedy is proportionate to what it would have done had it known the true facts. For consumers, the Consumer Insurance (Disclosure and Representations) Act 2012 means you are judged on whether you took reasonable care not to misrepresent, replacing the old harsh duty of utmost good faith.

You should also receive clear information about progress. If the insurer needs more evidence it should tell you what and why. Keep every letter, email and call note; a clear paper trail is your strongest asset if the claim later goes wrong.

If the claim stalls or is disputed

If you disagree with a decision, valuation or delay, raise a formal complaint with the insurer first. The firm has up to eight weeks to issue a final response. If it rejects your complaint, or eight weeks pass without resolution, you can refer the matter to the Financial Ombudsman Service, which is free to consumers and can direct the firm to pay the claim, increase a settlement or compensate for distress and inconvenience.

The Ombudsman looks at what is fair and reasonable in the circumstances, taking account of the policy terms, relevant law and good industry practice. Its decisions are binding on the firm if you accept them. There is normally a six-year time limit from the event, or three years from when you knew you had cause to complain.

Keep building your evidence throughout. If you commissioned an independent expert report, surveyor's findings or contractor estimates, supply them. The stronger and more contemporaneous your documentation, the easier it is to challenge an unfair outcome.

Frequently asked questions

How long does a home insurance claim take to settle?

Simple contents claims can settle within days once evidence is supplied, while complex buildings claims involving subsidence or major rebuilding can take many months. ICOBS 8 requires insurers to handle and settle claims promptly, but it does not set a single fixed deadline.

Will making a claim increase my premium?

Most claims, and even some no-payout notifications, are recorded and can raise your premium at renewal because insurers price by claims history. Whether to claim a small loss close to your excess is therefore a judgement call, not an automatic decision.

Can I choose my own builder for repairs?

Many insurers prefer their approved contractor network and may guarantee that work. You can usually request to use your own tradesperson, but the insurer may cap the amount it pays to the cost it would have incurred and may not extend the guarantee.

What if I cannot prove I owned a stolen item?

Insurers accept a range of proof including photographs, bank or card statements, packaging, manuals and serial numbers, not just original receipts. The more independent evidence you can supply, the easier the claim is to settle.

Can the insurer reject my claim for an innocent mistake on my application?

Under the Consumer Insurance (Disclosure and Representations) Act 2012 a careless or innocent misrepresentation does not automatically void cover. The insurer's remedy must be proportionate to what it would have done had it known the true facts.