diff --git a/homeassistant/components/homematicip_cloud/config_flow.py b/homeassistant/components/homematicip_cloud/config_flow.py
index 547289f871a..b6b78948894 100644
--- a/homeassistant/components/homematicip_cloud/config_flow.py
+++ b/homeassistant/components/homematicip_cloud/config_flow.py
@@ -47,6 +47,9 @@ class HomematicipCloudFlowHandler(config_entries.ConfigFlow):
                 _LOGGER.info("Connection to HomematicIP Cloud established")
                 return await self.async_step_link()
 
+            _LOGGER.info("Connection to HomematicIP Cloud failed")
+            errors["base"] = "invalid_sgtin_or_pin"
+
         return self.async_show_form(
             step_id="init",
             data_schema=vol.Schema(
diff --git a/homeassistant/components/homematicip_cloud/hap.py b/homeassistant/components/homematicip_cloud/hap.py
index 78f1d57ac93..164997d5582 100644
--- a/homeassistant/components/homematicip_cloud/hap.py
+++ b/homeassistant/components/homematicip_cloud/hap.py
@@ -34,7 +34,7 @@ class HomematicipAuth:
             self.auth = await self.get_auth(
                 self.hass, self.config.get(HMIPC_HAPID), self.config.get(HMIPC_PIN)
             )
-            return True
+            return self.auth is not None
         except HmipcConnectionError:
             return False
 
@@ -63,7 +63,7 @@ class HomematicipAuth:
                 auth.pin = pin
             await auth.connectionRequest("HomeAssistant")
         except HmipConnectionError:
-            return False
+            return None
         return auth
 
 
diff --git a/homeassistant/components/homematicip_cloud/strings.json b/homeassistant/components/homematicip_cloud/strings.json
index 2b2a75ebc08..fddb2b85df6 100644
--- a/homeassistant/components/homematicip_cloud/strings.json
+++ b/homeassistant/components/homematicip_cloud/strings.json
@@ -16,7 +16,7 @@
     },
     "error": {
       "register_failed": "Failed to register, please try again.",
-      "invalid_pin": "Invalid PIN, please try again.",
+      "invalid_sgtin_or_pin": "Invalid SGTIN or PIN, please try again.",
       "press_the_button": "Please press the blue button.",
       "timeout_button": "Blue button press timeout, please try again."
     },
diff --git a/homeassistant/components/homematicip_cloud/translations/en.json b/homeassistant/components/homematicip_cloud/translations/en.json
index 26ca6eb60d6..74d42fc7bc4 100644
--- a/homeassistant/components/homematicip_cloud/translations/en.json
+++ b/homeassistant/components/homematicip_cloud/translations/en.json
@@ -6,7 +6,7 @@
             "unknown": "Unknown error occurred."
         },
         "error": {
-            "invalid_pin": "Invalid PIN, please try again.",
+            "invalid_sgtin_or_pin": "Invalid SGTIN or PIN, please try again.",
             "press_the_button": "Please press the blue button.",
             "register_failed": "Failed to register, please try again.",
             "timeout_button": "Blue button press timeout, please try again."
diff --git a/tests/components/homematicip_cloud/test_hap.py b/tests/components/homematicip_cloud/test_hap.py
index ca701622e90..2a4833553d2 100644
--- a/tests/components/homematicip_cloud/test_hap.py
+++ b/tests/components/homematicip_cloud/test_hap.py
@@ -175,9 +175,7 @@ async def test_auth_create_exception(hass, simple_mock_auth):
         "homeassistant.components.homematicip_cloud.hap.AsyncAuth",
         return_value=simple_mock_auth,
     ):
-        assert await hmip_auth.async_setup()
-        await hass.async_block_till_done()
-        assert not hmip_auth.auth
+        assert not await hmip_auth.async_setup()
 
     with patch(
         "homeassistant.components.homematicip_cloud.hap.AsyncAuth",