Home Insurers Deny Over 44% of Claims: A Losing Bet?

Homeowners in the U.S. face a significantly higher chance of having their insurance claims denied, with the five largest home insurers rejecting over 44% of resolved claims in 2025. This marks a substantial increase from a decade prior when the denial rate was approximately 36%.

Insurers cite escalating losses from extreme weather events such as wildfires, hailstorms, and hurricanes as a primary reason for increased claim rejections. To offset these financial impacts, companies have raised deductibles, with some now calculated as a percentage of a home's value.

Consumer choices also play a role, as lower monthly premiums are often exchanged for higher deductibles. This strategy can leave homeowners unexpectedly responsible for more costs during disaster events. The article notes that while large insurers are denying more claims, some smaller companies have maintained or improved their payout rates.

Geographically, Florida reported the highest nonpayment rates, with over two in five claims denied in 2024, likely due to hurricane-related flood damage not being covered. Texas and California also experienced high denial rates stemming from severe weather incidents like hail, flooding, wildfires, and mudslides.