Fake alarms and phantom tradies: the white lies Aussies tell their home insurer
Key takeaways
- According to new Finder research, 22% of Aussies with home insurance have left out or exaggerated details on their policy.
- Home security is the most common fib (10%), followed by home or contents value and passing off DIY work as a tradie's (9% each).
- Being upfront and comparing policies is the safer way to save, because a fib can give your insurer grounds to cut or knock back a claim.
From pretending to love a Christmas gift to sending that text saying "you're on the way", everyone's told a white lie to keep the peace.
Most of the time, a little fib is harmless. But recent findings from Finder's 2026 Household Report has revealed that some Aussies might be taking it too far.
The data revealed that 1 in 5 Australians with home insurance (22%) have left out or exaggerated details when taking out or renewing their policy, potentially putting their cover on the line.
What Aussies are fibbing about
Home security is the most common white lie, with 1 in 10 policyholders (10%) admitting they've exaggerated details about alarms, locks or security cameras.
Close behind, 9% have misrepresented the value of their home or contents. Another 9% have told their insurer a licensed tradie did work they actually knocked out themselves over a weekend.
Concerningly, 7% of policyholders have been less than truthful about whether their property is in a bushfire, flood or cyclone zone, while 6% have misrepresented the age of their home or what it's built from.
Around 4% admitted to have left out previous claims or rejections, while 4% misrepresented whether their home is owner-occupied, rented out or vacant.
Want better value home insurance?
Start comparing
What happens when it's time to claim
Your home insurance premium is based on the risk your insurer thinks it's taking on. Bend the truth and you're paying for a policy built around a home that doesn't quite exist.
When you lodge a claim, an assessor may look at the damage, ask for invoices or check records, and that's when a missing alarm or a DIY wiring job can come to light.
Depending on what was misrepresented and why, an insurer may reduce what it pays out, decline the claim, or in more severe circumstances, cancel the policy altogether.
3 honest ways to bring your premium down
If your renewal notice made you wince, there are better ways to save than creative writing on your application:
- Reach out to your insurer. Rather than auto-renew your policy, contact your insurer to ask if they'd be willing to negotiate your premium. Insurers are more inclined to retain customers rather than onboard new ones, so there may be some wiggle room.
- Compare your options. If you'd rather switch to a new insurer entirely, compare 2-3 quotes to find out if there's a better value option on the market.
- Look for discounts. Many insurers offer introductory discounts exclusively to new customers. Depending on the insurer, this could be a percentage off your premium, cashback or access to other perks.
Been a while since you last took a look at your home insurance? Compare how your policy stacks up to current offers on the market with Finder's home insurance comparison tool.
Ask a question