Property insurance complaints fall in first half of 2026

The number of property insurance complaints reported to financial services firms fell by 9.2% year on year in the first half of 2026, according to the latest Financial Conduct Authority (FCA) data.

Firms reported 85,527 property insurance complaints between January and June 2026, compared with 94,186 in the same period of 2025. The total was also 3.8% lower than the 88,861 complaints recorded in the second half of last year.

The fall contrasts with the wider financial services sector, where total complaints increased by 6.3% compared with the previous six months, to 1.85 million.

The FCA data also show that firms also set aside less to cover potential redress. Provisions for property insurance complaints totalled £38.1 million in the first half of 2026, 13.5% lower than in the same period of 2025 and 8.2% lower than in the second half of the year.

Because provisions fell faster than complaint numbers, the average provision per complaint opened fell to around £445, from £467 in the first half of 2025. This remains higher than in most half-years between 2021 and 2024, and half-year figures can be volatile, so a single period does not confirm a change in trend.

Cos Kamasho, principal consultant at BCIS, said: ‘The reduction in property insurance complaints is encouraging, although the figures alone cannot tell us what has driven the fall or whether customers are experiencing better outcomes when making a claim.

‘For insurers, brokers and property owners, keeping rebuild cost information up to date remains an important part of reducing the risk of underinsurance and supporting a clearer understanding of cover.’

What the figures measure

The FCA publishes complaints data every six months, using information submitted by regulated firms. The figures cover complaints made directly to firms, rather than cases subsequently referred to the Financial Ombudsman Service.

The property category captures complaints about property insurance more broadly, so the total should not be interpreted as the number of complaints specifically about buildings insurance claims or underinsurance.

The FCA also cautions against using complaint volumes alone to assess performance. The size of a firm’s customer base, the number of policies it provides, the proportion of complaints upheld and the time taken to resolve them all provide additional context.

Rebuilding costs continue to rise

While property complaint volumes have fallen, the cost of rebuilding homes continues to increase. The ABI/BCIS House Rebuilding Cost Index rose by 4.4% in the year to October 2026.

Kamasho said: ‘Materials that require substantial energy to manufacture, such as bricks, cement and glass, are exposed to energy cost pressures. Oil-derived products, including some insulation, membranes and plastics, can also be affected by changes in feedstock costs.

‘These pressures can feed through at different times and affect properties differently, depending on their construction and the work required.

‘Appropriate index-linking can help maintain cover between reviews, but it cannot correct an inadequate starting estimate or account for extensions and alterations. Rebuild cost estimates also need to allow for relevant costs such as demolition, debris removal and professional fees.’

The complaints data do not establish how many properties are underinsured or explain the reasons behind individual disputes. However, robust property information and current reinstatement cost estimates can help insurers, brokers and customers identify potential gaps in cover before a loss occurs.

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