Material Misrepresentation
Definition:
A false or misleading statement on an insurance application or claim that affects coverage.
Explanation:
If a homeowner provides incorrect information that impacts risk, the insurer may cancel the policy or deny claims. Honesty is critical when applying for or renewing insurance.
Example:
If you say your roof is five years old when it’s actually 20, and later file a roof damage claim, the insurer may deny it for material misrepresentation.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.