What are warranties in the context of insurance contracts?

Warranties in the context of insurance contracts are written statements that represent a promise made by the insured. These warranties are crucial because they set specific conditions or obligations that the insured must comply with to maintain coverage. For example, a warranty might require the insured to regularly maintain a property or to install certain safety features. If the insured fails to uphold these warranties, it can lead to a denial of a claim or even the voiding of the insurance policy.

Understanding warranties is essential for policyholders, as they indicate the level of commitment required from them to ensure that their insurance coverage remains valid. This distinguishes warranties from other types of statements or agreements that may not carry the same legal implications or responsibilities.