Exaggeration is becoming more common in claims

Exaggerated home insurance claims are on the rise as the squeeze on household finances tempts more people to try squeezing extra cash out of insurers.

The number of homeowners exaggerating a claim on their household insurance has soared 17 per cent in the last year, insurer Axa reveals today.

It estimated that 200,000 consumers have bumped up their claim by an average of £607 over the past 12 months.

The research found that 12 per cent of people would be more likely to consider making an inflated claim now than three years ago.

And Scots, who three years ago were the least likely to make an exaggerated claim, are now the most likely to do so, the figures show.

People in Scotland are 10 per cent more likely to have overstated the value of any damage incurred than the UK average.

Men across the UK are almost twice as likely as women to overegg a claim.

But the end result is higher premiums, according to Axa, which estimates that exaggerated claims add up to £13 on every home insurance policy.