Being honest won't work against you, even if you're to blame for the loss. But fudging the details, let alone outright deception, will come back to haunt you.
Often when making a claim, you are at fault-"There's no stupidity exclusion in a policy," says Lindsay Olson, a vice-president for the Insurance Bureau of Canada in British Columbia. "People make errors." But withholding the facts could make it harder for insurers to probe a loss, be construed as deliberate misrepresentation, label you as what The Co-operators Group's Sharman calls a "moral hazard"-what else are you lying about?-and could even nullify your claim.