Ace the 2026 Property and Casualty Challenge – Insure Your Success!

A warranty in insurance is a statement or promise made by the insured about a particular fact or condition that is essential to the risk being covered. It signifies a confirmation that a condition exists or will exist as part of the insurance contract. Warranties can be about the operational status of a property, such as maintaining a certain level of security, or adhering to specific practices that mitigate risk. If the warranty is found to be untrue when the policy is underwritten or when a claim is made, it can result in the denial of coverage.

This concept is crucial because it highlights the importance of truthful representation and compliance with conditions that influence the insurability of a risk. Understanding warranties helps policyholders appreciate the obligations they are assuming and the significance of maintaining those conditions to ensure coverage.