Fraud & Misrepresentation
Definition:
False statements or dishonesty by a policyholder that can void coverage.
Explanation:
Insurers may deny claims if they discover material misrepresentations, such as lying about property condition, ownership, or loss circumstances.
Example:
If you claim a TV was stolen but it never existed, the insurer may deny the claim for fraud.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.