When you take out a policy you are asked a set of questions, and the answers become part of the agreement. The insurer prices the risk on that basis. If the picture was materially wrong, the claim can be reduced or refused.
What counts as material
- Health: existing conditions, treatment, medication, past surgery.
- Motor: who actually drives the car, where it is kept, what it is used for.
- Home: construction type, age, whether it is left empty for long periods, business use.
- Business: every activity you carry out, every location, everything you manufacture or import.
It does not stop at inception
The obligation continues through the policy. Moving house, changing vehicle, adding a new line of business, starting to rent the flat out — all of these change the risk, and all of them need telling. An endorsement takes minutes.
The general principle: if you find yourself wondering whether something is worth mentioning, mention it. Disclosed facts almost never cause a problem. Undisclosed ones do.
What happens if something was missed
It depends on whether the omission was material and whether it related to the loss. Insurers may reduce the payment proportionately, or decline it. Correcting the record while nothing has happened costs nothing but a phone call.