Which home insurance company denies the most claims?

Which insurance company denies the most claims?

According to the Weiss Study, around 30% of claims from top insurers were denied in 2023. However, USAA and Farmers denied the most homeowners insurance claims. 

Both companies denied almost 50% of claims.

There could be many reasons for this, such as a lack of necessary coverage, high deductibles or lack of documentation. Additionally, some insurers say that claims may still be paid under other policies or were denied due to multiple filings.

It’s important to note that where each company had the most claims filed impacts how many are denied. For example, many homeowners insurance companies denied claims for flooding after hurricane damage because home insurance doesn’t cover floods. So, insurers with more policies in affected areas would have more claim denials.

Travelers and Chubb showed the fewest denied claims at just over 6%.

The table below shows the top homeowners insurance companies in the U.S. and the percentage of claims denied in 2023.

Which insurance company is best at paying claims?

According to J.D. Power and Insurance.com’s surveys, Amica and Erie have the highest claims satisfaction ratings. Our 2025 best home insurance companies survey found that 100% of Erie customers reported satisfaction with claims handling, and 96% of Amica customers were satisfied. J.D. Power scored Amica higher, 906 out of 1,000, and Erie at 888.

The table below details top homeowners insurance companies and how they stack up for claims handling.

*Percent of customers who said they were satisfied with claims service in our 2025 survey

**Score out of 1,000

Why do insurance companies deny claims?

Insurers follow strict guidelines to determine whether to pay or deny a claim. While insurers don’t dismiss a claim out of hand, it must meet specific criteria to be approved.

“There are numerous reasons why a home insurance claim may be denied. Among the most common is a lack of coverage. For example, a flood insurance claim filed with your home insurer. Standard home policies do not cover flood so those types of claims will always be denied. However, in order to qualify for a FEMA emergency grant, you must show proof that your flood claim was denied by your home insurer so you need to file the claim knowing it will be rejected,” says Mark Friedlander, director of corporate communications for the Insurance Information Insititute (Triple-I), a consumer resource.

An insurer may dismiss a claim for numerous reasons, such as:

• The damage isn’t covered. Home insurance excludes certain types of damage, including floods and earthquakes. “Some policies exclude wind damage, so if you suffer damage from a severe windstorm event like a hurricane or tornado, you will not have coverage,” says Friedlander.
• The damage was below the deductible. The deductible is the amount you must pay before your insurance kicks in. If the cost of repairs is less than your deductible, insurance won’t cover anything. “This is especially true for homeowners who have a separate wind/hail deductible from their standard home deductible. The wind hail deductible is typically between 2% to 5% of the dwelling coverage limit of your policy, which could be a substantial amount that the policyholder is responsible for before any claim payment is made by your insurer,” Friedlander says.
• Missing documentation. Your claim can be denied if you don’t supply pictures, receipts or other documents needed to verify the claim.
• Negligence. Insurance will deny the claim if your negligence was responsible for the damage.
• Missing deadlines. Your insurer will give you a timeline of when documents are due and may deny your claim if deadlines aren’t met.

“Some other reasons for denied claims include lack of documentation, nonpayment of premium, not meeting the claim filing deadline after the loss, or wear and tear, such as a roof that has not been well maintained,” Friedlander says.

What to do if your insurance company denies a claim

It can be frustrating if your insurer denies a claim you feel is valid. Fortunately, there are things you can do if your homeowners insurance claim is denied.

Steps to take if your insurance company denies your claim include:

• Review your insurance policy and the denial letter. Go through the denial letter and determine if your policy offers the coverage needed for the claim. List any other reasons for the denial and ensure you have a counterpoint for each one.
• Gather more documentation. Your denial may be based on insufficient evidence, so gather any additional receipts, pictures, police reports and anything mentioned in the denial.
• File an appeal. You may appeal the denial with your insurer. If you do so, include any missing information and explanations in the denial letter.
• Contact your state’s Insurance Department. Every state has a regulatory office that receives complaints. File a complaint about your insurer to allow them to investigate.
• Hire a lawyer. If you feel you’re not progressing with the claims process, you can hire a lawyer to continue it. The downside is the lawyer's cost, but hiring an attorney should complete the process.

“If you have questions or concerns about a denied claim, we recommend asking your insurance agent for guidance. Many states also have an arbitration process for appealing denied claims,” Friedlander says.

How to avoid a denied claim

Following the claims procedure is essential to avoid a denied homeowners insurance claim. Ways to avoid a denied claim include:

• Calling your insurer to understand the claims process thoroughly
• Checking your policy to ensure your claim is covered
• Gathering all pertinent information and documentation
• Completing all tasks by the insurer’s deadline

Following your insurer’s claim process can help your claim be approved faster and prevent denied claims.

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