The number of British policyholders exaggerating home insurance claims is on the rise. A recent study found that in 2011, Brits exaggerating the severity of a claim on their home insurance policy increased by 17% according to year on year figures.
It’s estimated that in 2011, in the region of 200,000 consumer added on average £607 to each claim as a result of exaggerating the extent of the problem they were claiming for on their home insurance policy. Furthermore, data from insurance provider AXA shows that they actually caught out several thousand of their customers as they attempted to make claims which extended the extent of the issue.
Research from 2010 shows that exaggerated claims on home insurance policies are having a knock on effect on the overall cost of home cover for everyone with an extra £13 being added to each and every home insurance policy as a result of claims which have been exaggerated to obtain larger payouts.
One of the principle reasons for the rise in exaggerated house insurance claims is believed to be due to the economic climate as policyholders attempt to claw back some extra money by overstating the severity of a claim on their home cover policy. Despite the recent hike in overstated claims, 45% of home insurance policy holders do believe that making an exaggerated claim is dishonest.