Are cavity wall insulation claims companies legitimate?

Claims firms can be genuine, but they sit on top of routes you can use yourself. The detail below helps you judge them and weigh the cost.

How claims companies are regulated

Since 2019, claims-management companies in England, Wales and Scotland have been regulated by the Financial Conduct Authority (FCA), which sets rules on conduct, fee transparency and marketing. A firm offering to run a cavity wall insulation claim as a claims manager should be FCA-authorised, and you can check this on the FCA register. If the work is being done by a firm of solicitors, they are instead regulated by the Solicitors Regulation Authority (SRA), with its own register. Being on the right register does not guarantee a good outcome, but a firm that is not regulated at all should be treated with real caution.

Regulation matters because it sets standards a firm must meet on how it markets, how clearly it explains fees, and how it treats customers. The transfer of claims-management oversight to the FCA was intended to raise those standards and weed out the worst practices that had grown up in the sector. Checking the register before you engage anyone is quick and tells you whether the firm operates within that framework. It is not a guarantee of quality, but a firm that cannot demonstrate it is authorised, or that avoids the question when asked, has effectively answered it for you.

What they charge and what you keep

Most claims firms work on a contingency basis — they take a percentage of any compensation you recover, sometimes plus other charges. The figure varies between firms and should be set out clearly before you sign. The trade-off is straightforward: the firm handles the paperwork and chasing, but you keep less of the award. Because the same claim can usually be made free of charge through CIGA, the installer or the Financial Ombudsman, it is worth weighing what the firm actually adds. For a clear-cut CIGA guarantee claim, the value a claims company brings may be limited compared with the fee.

Indicative comparison for guidance. Sources: FCA; Citizens Advice.

Warning signs to watch for

Certain behaviours are red flags regardless of regulation:

• Unsolicited cold calls or texts claiming you are owed money for your insulation.
• Upfront fees before any work is done or any award is secured.
• Pressure to sign quickly or vague answers about who regulates them.
• Inflated promises of a specific large payout — no one can guarantee an amount.
• Reluctance to confirm their FCA or SRA registration when asked.

A genuine, regulated firm will give you time, written terms, and a clear explanation of the free alternatives.

The free routes you already have

Before engaging any firm, remember the routes open to you directly. You can complain to the installer if they are trading, claim on the CIGA guarantee for free, and take a regulated finance dispute to the Financial Ombudsman Service at no cost. Citizens Advice can help you understand your position. These routes are designed for homeowners to use without a middleman. A claims company may still suit someone who would rather not deal with the process themselves, but the decision should be made knowing the alternatives exist and cost nothing — not because a cold call implied you must use a firm to be paid.

The marketing around insulation claims can give the impression that a specialist firm is the only way to recover anything, which is not the case. The guarantee scheme and the Ombudsman were both set up to be approached directly by ordinary homeowners, and neither charges a fee. Where a case is genuinely complex or contested — a disputed cause, an uncooperative party, or a matter heading towards court — there can be real value in professional help, and a properly regulated firm is then a reasonable choice. The point is to make that choice deliberately, weighing the fee against what the firm adds, rather than under pressure.

A simple test can help. Ask yourself whether the firm is offering to do something you could not reasonably do yourself. For a clear CIGA guarantee matter, the answer is often that you could register and pursue it directly, in which case the fee buys convenience rather than capability. For a tangled dispute with an uncooperative party, conflicting survey evidence, or a finance complaint heading towards the Ombudsman or court, professional handling may genuinely improve the outcome. Judging each case on that basis — and verifying the firm's regulation first — keeps you in control of a decision that some marketing is designed to make for you.

Frequently asked questions

Sources & further reading

• FCA — claims management companies
• Citizens Advice — using a claims company

Figures on this page are typical UK ranges drawn from published sources and depend on your specific property. They are guidance, not a quotation.