17 per cent rise in those exaggerating home insurance claims

The number of people exaggerating claims on their home insurance has gone up by 17% in the past year, new research has found.

An average of £607 was added to 200,000 claims according to AXA UK, as households use it as a way to gain extra income while money is tight.

45% of respondents to the survey said they believe enhancing the extent of damage or loss to property is not dishonest behaviour.

Steve Gaywood, Head of Fraud at AXA UK, said: "Ultimately, if consumers get caught out they run the risk of having the whole claim turned down as well as facing problems getting insurance in the future."

Areas claimants are likely to lie about on home insurance claims include previous claims, whether doors and windows were shut and using another person's receipt as evidence for owning an item.

There are currently concerns that up to 20,000 homes in the UK may become uninsurable when the Statement of Principles on flooding runs out.