What if the insurance companies don't pay your home insurance claim

Although home insurance companies are in business for profit and would prefer to pay as little as possible, most will act in a relatively quite for some reason.

First, their business is based on the fact that they have to pay on the claim: as long as they have done their numbers are correct and predict how many valid claims will be made every year, they will be able to afford them all and still end up with a healthy profit.

Second, it is not really in their interest to "cheat" you out of the payment, particularly low: the money they save will not make up for years of future premiums they will lose if you move to a different insurance and persuading friends and relatives to avoid the company.

What possible reason the original insurance has refused to pay?
There are some circumstances in which insurance companies will not pay the full claim that may seem unfair but legitimate reasons covered by your insurance agreement.

One example is when you answer questions about the wrong key. Some find insurance online companies will refuse payment for these reasons, while others will just take it into account if relevant to this case. For example, if you're one said you have deadlocks and really only have Yale-type lock that thieves opened with a method that will not work on the impasse, you will not get a payout.

Another potential point of confusion comes with the cover boundary. Claims not paid only on the value of the losses, but considering closing total. This means, for example, that if the total household contents worth £ 60,000 but you get a policy with a limit of £ 30,000, then the insurance quotes online company can only pay £ 500 if you have a £ 1,000 TV set stolen, although it claims well below your limit.

What options are available if I am not satisfied with the decision of my insurance company?

You can complain to the Financial Ombudsman Service, although you can only do this after formally complained to the insurance company and give them a chance to handle the situation. FOS goes through three stages of the process: starting with an informal look at the case and suggests a resolution (50% of cases end this way). If needed then go to a formal investigation and report with recommendations. About 10% of cases are not resolved in this way and go to the ombudsman for a final decision.

About 40% of home insurance complaints ultimately upheld by the FOS, although this figure is usually slightly higher compared with the insurance building contents insurance.

Can I sue insurance on my decision?

In theory you could, but in practice likely to be a great financial risk. Insurers will often have a lot of evidence of the past to point to where the back of their decision and may require costly legal support to be able to refute this.

If you lose this case, you may have to pay the legal expenses insurance company. Even if you win, there's no guarantee the insurance will have to pay your fees. In many cases the cost will be far greater than the law of money in dispute.

Source : http://www.uk-insurance-index.co.uk