• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Homeowners are feeling cheated

The vast majority of homeowners (about 71%) purchase their policies online, often through third-party sites that make it easy to compare quotes from multiple insurers. The LexisNexis study suggests that shopping on these sites may make it easier for people to lie.

Indeed, the U.S.-based Insurance Information Institute says misrepresenting facts on an application is one of the most common forms of fraud, alongside inflating or inventing damages during the claims process.

Yet the U.K. results show people are most likely to lie or omit information when they feel aggrieved by the cost of insurance or cynical about an insurance provider’s motivations.

Nearly 90% of consumers who had filed recent claims believe providers try to avoid paying out claims at least some of the time, and people who had recently settled a claim were most likely to consider stretching the truth in the future.

To their credit, it’s true that insurers are very careful about which claims they pay out. Studies show fraud was rising in the U.S. even before the pandemic, and providers may be even more vigilant now that so many Americans are dealing with heavy debt and looking to cut down their bills.

Stop overpaying for home insurance

Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.

Officialhomeinsurance can help you do just that. Their online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.

Explore better rates

The consequences of getting caught

Although it may be easier to lie on your homeowners insurance when you are applying online, modern technology also makes it fairly easy for the provider to follow up on all the details you include.

These days, many insurance companies use predictive modeling and social media analysis to root out fishy applications during the underwriting process. Untruths do get missed, but the insurer will likely take a closer look once you’ve filed a claim later on.

The vast majority of insurers now have special investigation units to help identify and investigate suspicious claims, according to the Insurance Information Institute.

Once a fib is found out, you can face several penalties. Your insurer may decide to:

  • Immediately charge you the total amount of savings you’ve enjoyed so far.
  • Deny your claim, leaving you out-of-pocket for whatever disaster just hit your home.
  • Cancel your policy, which can make it more difficult and expensive to get coverage elsewhere.

A better way to save on your home insurance

Suddenly getting a big bill instead of financial support can turn any disaster into a catastrophe. Honesty really is the best policy when it comes to your insurance policy.

And playing Pinocchio isn’t the only way to reduce your premiums.

About 70% of homeowners in the LexisNexis study simply renewed their policy with the same provider when it came due. But the Insurance Information Institute recommends comparing at least three quotes to ensure you’re getting a good price.

And if you’d like to save a little more month to month, you can always opt to raise your deductible. Just make sure you don’t set the deductible at a higher level than you can afford in a crisis, and put some of your savings aside in an emergency fund.

More: 4 things not to lie about on mortgage application


This 2 Minute Move Could Knock $500/Year off Your Car Insurance in 2024

Saving money on car insurance with BestMoney is a simple way to reduce your expenses. You’ll often get the same, or even better, insurance for less than what you’re paying right now.

There’s no reason not to at least try this free service. Check out BestMoney today, and take a turn in the right direction.

Sigrid Forberg Associate Editor

Sigrid’s is Moneywise.com's associate editor, and she has also worked as a reporter and staff writer on the Moneywise team.


The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.