Some 94% of home insurance policy owners received most or all of their home insurance claims from their insurer, according to research by Compare the Market.

The study found that more than one in four homeowners (28%) have claimed on their insurance policy, typically receiving an average pay-out of £5,640 as nearly two-thirds (63%) received full payment requested from their insurer.

Only 14% of homeowners said their recent claim was less than £1,000, followed by 31% of people who claimed for between £1,000 and £3,000. One in ten people (11%) claimed more than £8,000.

Nearly two-thirds (63%) of those homeowners received full payment from their insurers, while 31% received most of their claims. Only 6% reported receiving partial payment or none at all. Baby boomers (those homeowners aged 55 and up) were nearly twice as likely (73%) to receive full payment compared to Gen Z (aged 18 to 24), of whom only 41% received the entirety of their claim.

The primary reason for claiming on home insurance was water damage, accounting for 28% of all claims, followed closely by accidental damage (27%), repair costs (21%), flood or storm damage (18%), theft (12%), and fire or smoke damage (11%).

Compare the Market: Main causes of home insurance claims

Some 16% of respondents had been denied their home insurance claim. The most common reason was homeowners not realising their policy did not include specific features (24%), such as accidental damage or personal possessions cover. Other reasons included special conditions relating to the policy (20%), not taking reasonable care (19%), such as leaving keys in the front door, and failing to pay policy instalments on time (18%). Additionally, 16% did not follow the claims process correctly or were unaware of policy exclusions.

The majority of homeowners recognise the importance of having home insurance, with 95% having taken out a policy. More than 94% of homeowners were glad they had a home insurance policy after having made a claim and 99% say they would recommend taking out home insurance to their friends and/or family.

Before renewing their home insurance policies, nearly half (46%) of homeowners say they actively shop around for better deals, while 35% do so occasionally. Only 4% never compare other policy options before renewing. Compare the Market customers could save up to £220 on their buildings and contents insurance policy.

Guy Anker, director at Compare the Market, said: “The rise in living costs means households are tightening their budgets and cutting back on unnecessary expenses. It is encouraging to see that homeowners are aware of the value that having a home insurance policy brings, saving many of them spending significant amounts of money on home repairs.”