Home cover compromise(d): 1 in 5 Australians fib on insurance to save money
Key takeaways
- 22% of Aussies admit to being less than truthful on their home insurance.
- Home security is the biggest fib.
- Comparing policies, premiums, excesses and coverage can help you find legitimate ways to save without putting your protection at risk.
Some Australians are bending the truth on their home insurance in a bid to save money, according to new research by Finder.
Finder's 2026 Household Report revealed more than 1 in 5 Australians (22%) with home insurance have left out or exaggerated information when taking out or renewing their policy.
Home security is the biggest fib, with 10% admitting they've fudged details about alarms, locks or security cameras.
A further 9% have misrepresented the value of their home or contents, while the same proportion (9%) have claimed DIY repairs or renovations were completed by a licensed tradie.
Ceyda Erem, insurance expert at Finder, said trying to trim a premium by bending the truth could leave homeowners far worse off.
"Many Australians are understandably looking for ways to bring down their household expenses, but insurance is one area where cutting corners can really backfire.
"A small saving on your premium isn't worth it if inaccurate details give your insurer grounds to reduce or deny a claim just when you need their help most."
Finder's research shows 7% of Australians have been less than truthful about whether their property is in a bushfire, flood or cyclone zone, while 6% have lied about the age or construction of their home on an insurance application.
A further 4% have left out previous insurance claims or rejections, while the same share (4%) have misrepresented whether their home is owner-occupied, rented out or vacant.
Erem urged homeowners not to mistake a low-priced policy with good value.
"The cheapest premium shouldn't be the only goal.
"If you've held back important details to lower that premium, you might have to pay the entire cost of a major repair, rebuild or replacement out of your own pocket."
Erem said being upfront with your insurer is a must, but so is comparing your options.
"Comparing policies, premiums, excesses and coverage can help you find legitimate ways to save without putting your protection at risk."
Erem encouraged Australians to review their cover rather than risk a rejected claim.
"If your premium has crept up, resist the urge to tweak the details to bring it down.
"Look for a more competitive policy with the right level of cover instead, because saving money should never mean gambling with your home."
The majority of Australians (74%) say they've always given accurate information when taking out or renewing their home insurance.
When taking out or renewing your home insurance, have you ever left out or exaggerated any of the following?
| Home security features (alarms, locks, cameras) | 10% |
| The value of the home or its contents | 9% |
| Repairs or renovations done DIY, but said a licensed tradie did them | 9% |
| Whether the property is in a bushfire, flood or cyclone zone | 7% |
| What the home is built from or it's age | 6% |
| Previous insurance claims or rejections | 4% |
| Whether the home is owner-occupied, rented out or vacant | 4% |
| Prefer not to say | 4% |
| No, I've always given accurate information | 74% |
| Source: Finder's Household Report 2026, including 631 Australians who currently have a home insurance policy |  |
Credits
- PR & Insights research team: Taylor Blackburn, Kate Boddington, Natascha Kwiet-Evans, William Capada
- Survey operation: Qualtrics
Sources
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