What does a warranty in an insurance contract imply?

A warranty in an insurance contract refers to a specific condition or promise that the policyholder must fulfill in order to maintain coverage. When a warranty is included in the policy, it becomes a fundamental part of the agreement, and failure to comply with the warranty can result in the insurer being able to deny coverage or claims.

For instance, if a homeowner's policy contains a warranty stating that the property must be equipped with a specific type of fire alarm system, the homeowner is required to meet that condition. If they do not, the insurer could potentially refuse to pay a claim related to fire damage. This highlights the importance of warranties within insurance contracts, as they impose obligations on the insured that must be adhered to ensure continued protection under the policy.