New Zealand Insurance & Financial Services Ombudsman Karen Stevens has warned consumers against believing a “bit of a lie” won’t hurt when it comes to insurance.

She says the ombudsman scheme has investigated many cases over two decades involving varying degrees of dishonesty, including people claiming for better televisions, phones or laptops than those actually stolen or damaged.

“Often people do not appreciate that the consequences of lying can be dire,” she said.

“Claims are declined and the flow-on effects include cancelled policies and names registered on the Insurance Claims Register.”

Details on the anti-fraud register can affect future insurance and have implications for home or business ownership, Ms Stevens says.

The ombudsman cites a case in which a man falsely wrote invoices in the names of five different people for home repair costs totalling $91,500, when he had done the work himself.

Ms Stevens also warns against guessing the value of losses.