What might happen if a warranty in an insurance policy is breached?

When a warranty in an insurance policy is breached, the correct outcome is that the contract can be voided. This is because warranties are specific promises that must be adhered to for the insurance contract to be valid. By definition, a warranty is an essential element of the agreement that can affect the overall risk assessment made by the insurer. When a warranty is violated, the insurer may consider that the initial risk they were underwriting has changed, thus justifying the denial of coverage or the annulment of the policy.

In essence, warranties are treated with a level of strictness; any deviation from the promised terms can allow the insurer to terminate the contractual agreement retroactively. Therefore, a breach of warranty can significantly impact the validity of the insurance contract and remove the coverage that the insured relied upon when entering the agreement.