If an insured conceals a material fact about property, what can happen to the coverage?

When an insured conceals a material fact about property, the insurance coverage can be voided. A material fact is one that would influence the insurer’s decision to provide coverage or the terms of that coverage. If the insurer discovers that a material fact was concealed or misrepresented, it has the right to void the policy. This means the insurer can deny any claims and may also refund the premiums paid, as if the contract had never been in effect. This principle is based on the concept of utmost good faith, which is crucial in insurance contracts, where both parties must act honestly and disclose all relevant information.

As a result, effective communication and honesty about the property's condition are essential to maintain coverage and ensure that claims can be processed smoothly in the event of a loss.