When a landlord insurance claim is turned down

An insurer can only refuse a claim for reasons the rules allow, and there is a set path for challenging that decision if you think it got it wrong.

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What the FCA requires of an insurer handling your claim

When an insurer turns down a claim, it isn't simply making a judgement call. The Financial Conduct Authority sets out, in a rule known as ICOBS 8.1.1R, how an insurer has to handle a claim once you've made one. That rule requires the insurer to handle claims promptly and fairly, and it stops an insurer rejecting a claim unreasonably (ICOBS 8.1.1R, read 30 September 2026).

What "fairly" means in practice

The rule doesn't list the reasons an insurer is allowed to give, or the ones it isn't. What it does is set the standard the insurer has to meet: it has to look at your claim against what actually happened and what your policy says. A rejection that ignores the circumstances of your claim, or that takes an unreasonable amount of time to arrive, falls short of this standard.

This is the rule you're entitled to point to when you think a rejection hasn't been handled properly. It sits behind your own policy wording, which is why the specific wording the insurer relied on still matters alongside it.

Why claims get turned down

A rejection is rarely a dispute about whether something happened at the property. It is almost always a condition somewhere in the policy that was not met, and insurers tend to point to a short list of the same conditions again and again.

A condition of the cover was not satisfied

Every policy sets out things the landlord had to do, or facts the landlord had to state, for a given cover to apply. If one of those was not met, the insurer can reject a claim without disputing what happened at the let. That includes what was told to the insurer when the policy was taken out, which is the duty the fair presentation requirement under the Insurance Act 2015 sets out.

The insurer was told too late

Most wordings set a period within which an event has to be reported, and that period runs from when the landlord knew or ought to have known about it. A notification made after that window has closed can be grounds for rejection on its own, separately from whatever the claim was actually about.

The property had been empty longer than the policy allowed

An unoccupancy clause sets a point beyond which cover for some perils falls away unless the insurer was told and the precautions the wording lists were in place. Where a rejection follows an empty period, it usually turns on when that clock is treated as having started, which is not always the date the current policy began.

Where a rejection relates to rent arrears rather than damage, check it against the referencing and notice conditions set out for rent guarantee cover, since those are often the conditions a wording points to.

A rejection letter should name the condition the insurer says was not met. The next step is to set that condition against the wording of the policy itself, in the same words, and ask the insurer to show where the wording requires it.

After a rejection

The route from a rejected claim to a final answer

A rejected claim is a decision. There is a set order to how you challenge it, and each stage has its own deadline.

Complain to the insurer in writing

Start by putting the complaint to the insurer directly, in writing, setting out why you think the rejection is wrong and attaching whatever the rejection letter asked you to challenge. Ask for this to be treated as a formal complaint, since that is what starts the clock on the insurer's own complaint process. Keep a copy of everything you send and everything you get back.

The insurer's complaint procedure is usually set out in the policy document or the rejection letter itself. Follow that route rather than going straight to a general customer service line.

Final response upholds the rejection
The insurer confirms in writing that the claim still is not covered, and gives its reasons. This is usually called the final response, and it is what you need before you can take the complaint further.

Final response overturns it
The insurer accepts the claim, in full or in part, and the complaint ends there.
The eight-week point

Insurers are expected to deal with a complaint and send a final response within eight weeks of receiving it. If eight weeks pass and you have not had a final response, you do not have to keep waiting. You can take the complaint to the Financial Ombudsman Service at that point, whether or not the insurer has finished looking at it.

The eight-week point is a deadline for the insurer. Some final responses arrive well before it.
The Financial Ombudsman Service

If the final response still rejects the claim, or the eight weeks have passed without one, the complaint can go to the Financial Ombudsman Service, which is independent of the insurer. It will look at the policy wording, the reasons given for rejecting the claim and your own account of what happened, and reach its own decision on whether the rejection was fair. The Financial Ombudsman Service sets its own time limit for bringing a complaint to it, so check that limit before you wait too long after the final response.

A decision from the Financial Ombudsman Service can require the insurer to pay the claim, in part or in full, or it can agree with the insurer's original decision.

Decision agrees with the insurer
The rejection stands, and that is generally the end of the route available through the Ombudsman.

Decision upholds the complaint
The insurer is required to put things right as the decision sets out, which may mean paying the claim, in part or in full.

Time limits and the exact complaint process can vary between insurers and between the stages described here, so check the dates on your own rejection letter and final response before you rely on them.