The authority noted Campbell Live's reputation as a leading current affairs programme and that this item was of importance not only to the home owners in question but to New Zealanders generally.
"The difficulties Cantabrians still face as a result of the Canterbury earthquake ... are important issues and legitimate to investigate and report on," said the authority.
However, it found the programme would not have enabled viewers to arrive at an informed and reasoned opinion about the progress of the Canterbury recovery.
This was because "it did not adequately present an alternative view point to balance the story's overall message that the insurance industry was "substandard, lamentable and generally failing the people of Canterbury."
The authority said it was misleading for the programme to say that the insurance industry, and the chief executive of the Insurance Council in particular, were "not willing to front" as the council had clearly made offers to engage with the programme and to take part in a live interview.