In property and home insurance, a warranty is a condition or promise that the policyholder agrees to uphold throughout the life of the policy. It might relate to the way a property is used, maintained, or protected. If a warranty is broken, even if it’s unrelated to the claim, the insurer may reduce or deny a payout.
Warranties are legally binding conditions, and insurers take them seriously. They’re designed to reduce risk, so failing to meet a warranty can have serious consequences for your claim.
Common examples of warranties in home insurance
While not an exhaustive list, these are some of the most common warranty conditions you might find in a home or landlord insurance policy. They’re often included to reduce risk, and failing to meet them can lead to reduced or rejected claims, even if the issue seems unrelated.
Alarm or security warranties
You may be required to keep burglar alarms, CCTV, or door and window locks in working order, and ensure they are in use when the property is unoccupied.
Heating or plumbing warranties
In colder months, if the property is empty, you may need to keep the heating on at a minimum temperature (often around 12°C), or drain the water system to prevent frozen or burst pipes.
Maintenance warranties
You might be required to maintain key structural elements like the roof, chimney, or drainage systems. Insurers often include this to reduce the risk of damage caused by disrepair or neglect.
Unoccupancy warranties
If the property is left empty for more than a certain number of days (commonly 30), you may need to inform your insurer and follow specific precautions, such as weekly inspections or switching off the water supply.
What happens if you breach a warranty?
If you don’t comply with a warranty, whether by accident or oversight, your insurer might:
- Reject a claim, even if the breach wasn’t related to the cause of damage
- Reduce the payout, especially if the breach increased the risk
- Cancel your policy, especially if it’s a repeated or serious issue
Some newer policies are more flexible thanks to the Insurance Act 2015, which requires insurers to treat warranty breaches more fairly. For example, if the breach didn’t contribute to the loss, the claim might still be honoured. But this depends on the wording and the insurer’s interpretation, so it’s important to understand what you’ve agreed to.
Is a warranty the same as a condition or T&C?
Not exactly. While warranties, conditions, and terms and conditions (T&Cs) are all part of an insurance policy, a warranty has a specific legal meaning in insurance and potentially more serious consequences if breached.
Here’s how they differ:
Warranty
A warranty is a strict condition that must be met at all times or as stated. If you break a warranty, even unintentionally, your insurer could refuse to pay out on a claim, even if the breach isn’t directly related to the damage.
Condition
A condition is still important, but there’s usually more flexibility. If breached, the insurer may still settle the claim as long as the breach didn’t contribute to the loss, and insurers are expected to act fairly.
Terms & Conditions (T&Cs)
This is the overall set of rules in your policy, including warranties, conditions, exclusions, and claim procedures.
FAQ’s
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What happens if I accidentally break a warranty?
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It depends on your policy and the Insurance Act 2015. If the breach didn’t cause or contribute to the loss, the insurer may still pay, but this can vary.
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How can I tell if my insurance policy includes warranties?
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Warranties are usually listed in the policy schedule or under “conditions” in the wording. Look for phrases like “you must…” or “it is a condition that…”
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How can I avoid problems with warranties?
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- Read the policy schedule carefully
- Keep records of alarm servicing, maintenance, or inspections
- Notify your insurer of any changes (e.g. if the home will be unoccupied)
- Speak to a Loss Assessor if a claim is disputed due to a warranty breach
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Can warranties be removed or negotiated?
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Sometimes. In commercial or landlord policies, or high-value home insurance, a broker may be able to negotiate wording or remove strict warranties. It’s harder with off-the-shelf or online home insurance policies, but still worth asking.
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What’s the difference between a warranty and an endorsement?
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A warranty is a strict requirement you must follow, usually for risk management (e.g. lock types, alarm settings). An endorsement is a change or addition to your policy; it can introduce new warranties, relax certain conditions, or clarify cover. Both are legally binding.
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Will breaching a warranty void my whole policy?
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Not usually. Breaching a warranty may only affect claims related to that breach. For example, if you failed to maintain your fire alarm system but made a theft claim, the insurer would need to prove the fire alarm warranty is relevant to that loss before applying any sanctions.
